Federal deficit spending cripples US economy
Since 2009 and the election of President Barack Obama America had been under an ideological assault that pit’s the traditional heritage of American freedom and self reliance against a gigantic government sanctioned welfare state that has been designed by the Democratic party to buy votes. This, they rationalize, will perpetuate their rule, but only at the cost of weakening the economy. As the federal government spends itself deeper into a deficit for such entitlements as unemployment benefits, welfare, food stamps, Section 8 housing, and the myriad programs designed for public assistance, the US dollar continually loses value.
Spending like there's no tomorrow until there is none
Little do the people realize that America’s dysfunctional federal government oriented economy relies upon borrowing to pay for its debts. For the first time in history in 2011 it cost more to run the government than the total output of the US economy. At more than 16 trillion dollars annually the US government out spent the GDP (gross domestic product) of the US private sector which was 14.2 trillion dollars annually. This fact alone should alarm Americans and their leaders alike, but this one epiphany has not stopped President Obama’s out of control spending nor has it prompted the President to adopt a budget. Instead, President Obama has used every debt ceiling crisis to politically manipulate the situation blaming Republicans for not letting him spend more while telling the naïve American people that opposition to debt ceiling increases only hurts the nation’s credit rating and thus creates higher interest to be paid by the fed as it finances its huge deficit. In, truth, President Obama’s policies of using expensive federal government programs to supposedly jump start the economy have not only failed but have dramatically increased the federal deficit.
Implications of crippling US debt
The old saying that, “ got to pay the fiddler if you want to dance,” couldn’t be more true, and the US government is paying to dance to the tune of a losing battle. Several foreign countries have bought US debt by investing in US Treasury notes. At last count, China owned 850 billion in US federal deficit while such nations as Japan and Mexico also hold significant shares in the US deficit. In order to facilitate this fiat currency that is no longer backed by gold and is now allowed to exist as no more printed worthless paper representing billions of dollars of credit within the computers of the Federal Reserve, the methodology of quantitative easing has been utilized to try and prolong the inevitable without remedying the devaluation of the US dollar.
Buying back debt with more worthless paper
In the most recent phase of quantitative easing, the government has been buying back its Treasury Bills with more printed dollars, repaying its debt with more fiat currency. At 80 billion a month in buying back US Treasury Bills, the government maintains an impossible equation of borrowing and money printing that exceeds the total GDP of the US for the express purpose of running a government that has grown way too big, is exerting suffocating economic policies upon the private sector, and refuses to streamline its wasteful operations. The US is the only nation on earth that prints money it cannot back with tangible assets.
An obvious solution ignored by feds
This ongoing crisis can only be solved one way. Cutting the inefficiency of big government size, by reducing unnecessary agencies and departments along with the lavish government benefits paid to federal employee unions that outweigh equivalent benefits to workers in the private sector who hold the same responsibilities. However, President Obama refuses to reduce entitlements, carve out needless government spending, or stop the deadly cycle of deficit spending. He has used Majority Leader, Harry Reid in the Senate to defeat every viable plan of responsible spending cuts presented by the Republicans while telling Americans the government he needs more revenue, meaning taxes! How can any president that truly cares about the US citizens tell an already besieged population in a declining economy that they will now pay more taxes?
What's wrong with bringing employers back?
By cutting corporate taxes, the federal government can encourage US businesses back onto domestic jurisdiction which would create more jobs which, in turn, would generate more revenue from employment withholding taxes, but the Obama White refuses to operate upon proven fiscal principles. The Keynesian model of government economic procedure was long ago proven deficient by the supply side economics of Milton Friedman, but this is one administration unconcerned with its negative impact upon the nation.
Blame government policy
This is not just a dilemma. It is a government caused recession that through intentionally bad policies has created mass unemployment, US dollar devaluation, and the footprint of big government interfering on every level of the private sector economic engine that is supposed to drive the US economy. There is no need for this crisis. There are viable ways to deal with the economy that do not involve painful government measures. However, these much needed changes that would remedy the US economy and create a robust hiring environment will not happen under the Obama administration. The President either has no real grasp of how an economy works or he is purposely driving the US economy and the nation down.
A Marxist President
Many believe that President Obama is committed to forcing the US into a decline because he believes America has punished the rest of the world under the weight of its own prosperity in the decades that have led to this point. Of course, this world view of President Obama is flawed and characteristic of the Marxist influence in his life. President Obama’s personal experience has never included business management or, for that matter, even holding a job he can point to. The young Barack Obama applied for financial aid as a foreign student and than went into his post college life as a community organizer working with such controversial groups as ACORN. Besides having academic records that are locked down at Columbia University and Harvard, Obama’s only other experience in the real world has been organizing demonstrations to force banks to make high risk loans to minorities who do not qualify under conventional requirements.
A President who has no intention of righting the economy
One does not gain useful or practical economic knowledge nor an appreciation for the American tradition of self sufficiency by representing those who feel they are entitled to a privilege without earning it simply by virtue of the color of their skin, and this is a practice that Barack Obama specialized in before ever becoming a junior Senator for the state of Illinois, a state where his license to practice law was revoked. So, where are the President’s qualifications for making crucial decisions on US economic matters when he actually has none? With 47% of Americans now under some kind of federal subsistence the President has already increased welfare payouts by 15 billion to over 100 billion recipients. The President also removed the work requirement for those receiving food stamps.
When entitlerments come home to roost
One must ask where is the incentive for breadwinners to go back to work under these circumstances? Where is the concept of independence being advocated when the poor are encouraged to apply for welfare, food stamps, and other handouts without meeting guidelines. Where are the job programs that allow for placement and training that will teach self sufficiency to these people? The answer, there are none. Why? As I said before, Obama’s Democratic agenda is to buy votes in order to remain in power no matter at what cost to the state of this nation, no matter how debilitating the effects of these policies can be. This is the paradox of having politicians on Capitol Hill, who are not concerned about the impacts of their policies except for the limited constituency that they choose to represent. In doing so, President Obama is destroying the middle class who he penalizes with tax increases to support the 47% of Americans who are not working, paying taxes, or concerned about becoming responsible, independent contributors to US society.
Transforming the US into a Communist regime will not work
All over the world and through out history we have seen what the catastrophic results of Communism has done to the most populated nations on the face of the earth. Marxism, collectivism, statism, never works. By using the state to control all aspects of life, economy, industry, religion, and culture, government becomes a suffocating influence that causes stagnation and oppression. America can never exist under such conditions as the founders who created the US Constitution never intended society to be government forced version of perfection using large measures of intrusion while confiscating an ever increasing tax burden from its citizens in order to finance the myth of a bureaucratically guaranteed utopia.