Saturday, July 30, 2011

Debt Ceiling Debate Worst Than a Joke

How many times have we heard the media use the phrase "raise the debt ceiling?" As if that will solve all of our problems and avoid a downgrade.

Do they ever think to ask the question: "where does the money come from to pay these Congressional commitments?" Regardless of what the dolt in the White House says, America has spent beyond its means and the bulk in Congress do not have the desire to solve the real fiscal problems. Raising taxes on the rich is a class warfare tactic and will do nothing to address the spending problem -- the real problem.

Congress has no plans to address the real spending issues, the so-called entitlements.
According to the most recent government data, today some 50.5 million Americans are on Medicaid, 46.5 million are on Medicare, 52 million on Social Security, five million on SSI, 7.5 million on unemployment insurance, and 44.6 million on food stamps and other nutrition programs. Some 24 million get the earned-income tax credit, a cash income supplement.

By 2010 such payments to individuals were 66% of the federal budget, up from 28% in 1965. We now spend $2.1 trillion a year on these redistribution programs, and the 75 million baby boomers are only starting to retire.

None of this includes the ObamaCare entitlement that will place 30 million more Americans on government health rolls.

In three years the debt has increased by more than $4 trillion thanks to stimulus, cash for clunkers, mortgage modification programs, 99 weeks of jobless benefits, record expansions in Medicaid, and more.

Congress has made so many promises to so many Americans that there is no conceivable way those promises can be kept. Tax rates might have to rise to 60%, 70%, even 80% to raise the revenues to finance these promises, but that would be economically ruinous.

Yet Mr. Obama and most Democrats still oppose any serious reform of Medicare, Medicaid and Social Security. This insistence on no reform reinforces the notion that our entitlement state is too big to afford but also too big to change politically. This is how a AAA country becomes AA, the first step on the march to Greece.
All of this debt ceiling discussion is a waste of time. Only the Tea Party Reps are making any viable attempt to address our spending problems.

None of the debt plans will do anything to protects the nation's AAA rating. It has taken 75 years but we have finally become a broken socialist state patterned after the Europe we escaped from so many years ago.

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