Sunday, July 24, 2011

Another Code Phrase: Balanced Approach to Debt

What is it we have heard every MSM talking head say about the dept crisis? What is it we hear every Democrat say about raising the debt ceiling? Answer: "we need a balanced approach."

These past few weeks, everytime President Obama talked about the addressing the US's debt crisis, he has said it must included both spending cuts and revenue increases (taxes), his so-called "balanced approach."

Balanced approach is the political answer to the fact that we have two parties and one party cannot have its own way, whether that party is right or not.

I heard a congressional Democrat actually say that a balanced approach is the way real businesses addresses its woes. Here's a man that has never lived in the real world and has never read a book on economics.

Businesses are always trying to increase revenues. They are always weighing the expenses versus revenues equation. When revenues and revenue forecasts are down, expenses must be put in line. Few established businesses actually make new investments -- take out loans to invest in new products. Their cash position may help short term but expenses must always be in line with revenues.

Democrats cannot do anything in government that does not involve higher taxes. They try to disguise it as "just a tax on the wealthy who can and should pay more."

The balanced approach is just another way of saying tax increases.

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