Few points are being constantly and repeatedly raised by Obama administration, in the defense of their fiscal policies.
1. Government spending and investments are good and necessary to guarantee a bright future and our continued leadership in future.
2. Current government spending is a direct consequence of 2007-2008 recession, not a fault of Obama government.
3. Congress cannot refuse to raise the debt ceiling because they must pay the debt they racked up in past.
4. Losing the ability to pay our bills will seriously hurt our financial credibility and ratings.
5. The solution to current fiscal issues is a so called balanced approach, which in their words means increasing revenues and taxes, and cutting spending, which they have not fully specified, yet.
In this article we will evaluate these claims. First of all, we accept the fact that government spending in certain areas is critical for economic viability and growth. This includes the investments in early education and non-profitable basic, research. But, government needs to appreciate the fact that our better future also requires a financial, economic and fiscal strength. Let me give a brief picture our current financial situation:
1. Our governments financial assets or revenue are 2.7 trillion dollars a year.
2. As per Jan 10, 2013, government is spending 4.1 trillion dollars a year.
3. Our annual deficit has now topped 1.4 trillion dollars.
4. Government currently holds, with the exclusion of social entitlements, the net liabilities of 14.8 trillion dollars.
5. Government liabilities on social entitlement programs are about 46.3 trillion dollars.
6. Net deficit in U.S. assets is now 58.3 trillion dollars.
7. Governments total current liabilities are over 64 trillion dollars.
8. National debt is now over 16.4 trillion dollars.
Please, tell me, do these figures allow them to continue to run 1.4 trillion dollars, annual deficits?
2007-2008 recession was a really bad thing that happened to our economy, nation and country. Bush and Obama governments passed and implemented two, so called, stimulus and recovery acts. What these acts basically did was that they took about two trillion dollars of tax payers money and awarded it to the multi-national corporations, who were originally responsible for the crisis. So, the criminals got rewarded, instead of getting punished. Then Obama made government even bigger by appointing two watch dog agencies to monitor wall street, analyze the causes of recession and preventing those from happening in future. The “excellent” performance of these watch dogs is proven by the fact that not even a single wall street top executive has been prosecuted and jailed for recession related charges, so far. What a great return on this huge, on going, permanent investment of tax payers money?
Obama and his company keeps saying that we have a revenue problem and we need to increase the revenues. They must be kidding or they are complete idiots. U.S. government has revenues amounting up to 2.7 trillion dollars and they are telling us that this huge amount of money is not enough? We are the largest and richest economy in the world. We hold about 23 percent of whole world’s wealth, while we are only about 4% of world’s population. Of course, when government is spending about 4.1 trillion dollars a year, and counting, what do you expect? Obama administration has plans to spend even more then this. How they are going to do that. Like emperors, kings and lords, they will just keep increasing the taxes, until the people and economy are totally crushed or there is a revolution.
If you give a serious look to the above statistics, you can easily perceive that the problem are not revenues. It is spending and entitlements. Apparently, our government has grown, way too big. It has stretched itself, way too much. This problem of mounting debts and deficits, threat of bankruptcy, and economic and financial crash, and crisis, is not going anywhere, until and unless the spending and entitlement issues are properly and realistically tackled and dealt with.
Until recently, it looks like that Obama and company is still living in a La La land. They think we are too big to fail. Doesn’t matter how big our deficits are and how much debt is piled up. Our poor tax payers can keep paying, for ever. They are stealing away from our future generations, in the name of equality and justice, and safety and security. If you are familiar with world history, doesn’t it sound familiar? Isn’t it the same which destroyed the Greek, Roman, Chinese, Russian, Muslim and other great civilizations and empires, in past.
When it comes to this point, I always blame ourselves for this mess. We know that these two major political parties are at the helm of affairs since Abraham Lincoln, when Republican Party was formed. They have been alternating each other on every avenue of power, White House, congress, states, counties and cities. Together, they have got us in this enormous mess. But, we just keep voting for them. Reagan replaced by big Bush. Big Bush by little Bush. Clinton by Obama. But, the establishment and their bosses in big corporations, lobbies and media remain the same.
It is not just the fiscal, financial and economic issues. Unfortunately, we always find Obama administration, on the wrong side. Take the example of gun violence in America. Once again, they are focusing on guns, rather then the real causes of violence in our society. Why? Because discussing the real causes would explicitly expose their serious policy failures. They always site the examples of Britain and other European country, in the favor of less guns less violence. But, they always forget to mention Switzerland, a very important European country. Switzerland has the highest gun ownership rates in the world. It is mandatory for all Swiss citizen, in a certain age range to have a gun at home. As a matter of fact, government provides a gun to every citizen at the age of sixteen. Their favorite past time and leisure activities are gun fairs and competitions. At the entrance of virtually every public place you will see the guns hanging along with coats. They do not even have to conceal or restrict their weapons to the home. Yet, they have the lowest violent crime rates, in whole developed world.
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