Admittedly, comparing Pelosi to a bag of hammers is an insult to hammers. At least you can use a hammer to build something. Pelosi’s mind is totally useless.
With the sequester set to kick in on March 1, President Obama and his Democrat allies are hell-bent on shifting the conversation away from proper government cuts, and toward higher taxes. On Sunday, House Minority Leader Nancy Pelosi (D-CA) took to Fox News Sunday to explain that America does not have a spending problem. It is almost a false argument to say that we have a spending problem. We have a budget deficit problem, Pelosi insisted.
Pelosis motion was seconded by Sen. Dick Durbin (D-IL) on NBCs Meet the Press, where Durbin laughably explained that the sequester was designed as a budget threat, not as a budget strategy and stated that the only approach to solving the budget problem was to raise taxes again.
President Obama himself agreed with that perspective in his weekly online address. The budget sequester he signed off on the sequester proposal he insisted upon is now the Republicans fault. Obama claims that if the sequester goes through, firefighters and food inspectors will bear the brunt of the cuts, as well as cancer research and people with disabilities. Its the usual liberal demagogic approach to any problem: world to end tomorrow, minorities hit hardest.
Obamas solution: tax increases. Again. Congress should pass a similar set of balanced cuts and close more tax loopholes until they can find a way to replace the sequester with a smarter, longer-term solution, said Obama.
This drives regular people crazy, but my MENSA bright buddy may disagree. You see, the problem IS revenue. The solution is NOT increasing taxes. But the liberals can’t solve the problem the right way because it violates their ideology. What is the right way and how does it violate them?
Simple and I’ll let my buddy explain it as I paraphrase is long and detailed but simply put explanation.
“You see the problem is that as a nation we have made a number of commitment that we cannot or should not renege on. Social Security, Medicare, Defense, etc. But at the same time the government is not bringing in the money it needs to pay for the things they current are forced to cover. So how to fix it? First, you need to recognize you can’t walk away. Second, you also need to recognize that paying down the current debt is counter-productive. Who care about this money out there, we are handling that debt. So how do we solve the problem? By growth. As an example, you have a family budget. (And be careful you cannot really compare families to government but stay with me.) In the budget you have debt of ten thousand dollars and you make fifty thousand dollars. That is a lot. Twenty percent of your gross you owe. But here’s your problem. You have an elderly non-working parent who you promised to care for. They are costing you a thousand dollars a year beyond your budget in medical expenses. So each year your debt goes up. You can’t throw them out, you made a promise. They won’t get better, in fact, they may get worse. So what to do?
What you do is get a job that allows you to grow your income every year faster than your debt. It goes up by a thousand a year, in five years you owe five-five thousand. However, your new job increases your salary (GDP) by a fifty percent. This year you made fifty thousand, next year you make seventy-five thousand, the year after that and you are making one hundred and twelve thousand plus! Now take the same three years of debt. You went from ten thousand to thirteen thousand, but you are now making over a hundred grand. So, what is the percentage of debt to salary? A little over eleven percent. If you keep up the pace, you’ll simply outgrow your debt.”
Where does this sound like a bad idea to liberals? Well, in Obama’s case there is a good argument he hates our county and is punishing it. If not that, he and others do not like the economic engines that fuel growth; low energy, low regulations, low taxes. I’ve said this a hundred times; In a world crippled by socialism, a secure free market opportunity would simply suck up all the cash out there. People holding trillions upon trillions of dollars would come here to grow our nation.
But they won’t come here if they think they are going to get ripped off. Which is a good possibility.
I asked him if the process could work in reverse and he said absolutely. That is the big fear. If we continue to grow our debt yet refuse to outgrow it in economic activity sooner or later we are going to hit the wall. “It compounds,” he said with a serious tone. So yes, ideology trumping good economic sense can and will cripple even a nation our size.
He sees that, I see that, million of others see that, but Obama’s supported don’t or don’t care. Until the checks bounce or milk costs fifteen dollars a gallon they won’t.
Avoidable and sad.