Wednesday, July 27, 2011

What are they even talking about?!

I am reading the debate about the debt ceiling, and I feel like most of the left-wing went completely nuts. They talk about mythical "draconian cuts" to the federal government - and they seem to be dead sure they are telling the truth. And this just a few months after the previous "draconian cuts" of tens of billions of dollars to the 2011 budget, which in reality were worth a measly 38 million dollar. Today, comrade E. J. Dionne, a man enamored with the ideas of big government published another article full of lies, distortions and plain idiocy. Characteristically, as any leftie, he called himself a "moderate" (according to him, anyone slightly to the right of Lenin is a "moderate"). And one passage really made me upset:
"Instead, the center bends. It concocts deficit plans that include too little new tax revenue. It accepts cuts in programs that would have seemed radical and draconian even a couple of years ago."
Let me put things in perspective - please see the table below which summarizes the nominal federal and total spending (federal, state and local) on Medicaid and welfare - and shows how much these two programs grew in just the last few years. Once you see the numbers, you will understand that even a couple years ago, today's federal budget would indeed seem radical - even extreme - but not in the way E.J. presented it to the readers.

And now tell me - who believes that after all is said and done, that the federal, state and local spending for 2011 is likely to be cut? Heck, what are the chances that welfare and Medicaid spending will simply go to the level of 2007 - back when no one was starving on the streets. In fact, if 2011 budget were to kept at 2007 levels, it would have been smaller by a hefty 1.1 trillion dollars - even though the federal interest payments were higher by 30 billion dollars in 2007. Now, put this 1.1 trillion dollars in your calculator, and you will notice that the federal deficit in 2011 would be cut from the impossible 1.645 trillion dollars to a rather more reasonable 545 billion dollars. And, ladies and gentlemen, don't forget that 2007 was NOT a spend-thrift budget, not at all - even in 2007 the federal government was spending money like there was no tomorrow.

The entire debt and deficit discussion is insane - what are these politicians even talking about? We can easily cut the federal budget to 2007 levels - and that won't be a real "cut" to the liberal programs - we will simply return to a less insane level of spending prior to the Democrats takeover of the budget.

And when we do go back to 2007 levels - then we can start discussing on the balance between tax increases and the cuts to entitlements.

As far as the "revenue enhancements" - I personally believe that there are plenty of ways to increase revenues without raising taxes. The best way to raise revenue is by increasing employment and improving the economy. For example, we can abolish the minimum wage - the biggest hurdle to the employment of young and unskilled laborers. We can further help revenue by abolishing the entire Labor Department and liberalize the union laws. The next step would be to drop the "Endangered Species Act" - which would immediately bring back millions of jobs destroyed by the EPA. And finally - and this one is really the most fruitful idea - we can impeach each and every statist from the federal, state and local government and restore the American Dream. All these measures combined will surely bring far more revenue than any idea that our Inglorious Leader will devise in the next 3 million years. But then - don't forget that as Obama said a few years ago, he cares more about "social justice" than revenue.

1 comment:

Trestin said...

The whole thing is a joke, a grand distraction.