Incredibly, Democrats on Capitol Hill are, with White House encouragement, talking about jamming health care through Congress with a special procedure that requires only 50 Senate votes.
At least after World War II, spending could, and did, decline rapidly when the country demobilized. In this case, with the bulk of federal spending geared toward income maintenance and transfer payments that have political constituencies, that won't happen. And that is part of Mr. Obama's plan. One unstated but clearly implicit goal of his budget is to put in place spending programs that make ever-more Americans dependent on government and that will require a permanently higher level of taxation to finance. All of this is being done in the name of addressing income inequality.
Republicans have an obligation to slow down this express train to a European welfare state, and to educate Americans so that they put pressure on Democrats who claim to be deficit hawks. If this budget passes in anything close to Mr. Obama's form, Republicans will spend the next two or three generations doing little more than collecting higher taxes from the middle class to finance the Obama revolution.
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2 comments:
The most likely scenario is that the US will go bankrupt. We were the greatest producing nation. We became the biggest consuming nation. We have become the greatest debtor nation. And as China will soon find out, we will become the greatest deadbeat nation. That is the only thing that will put the brakes on the democrats' spending.
And who will be hurt the most by this. That's right, the poor. The people who will have put all their hopes and dreams into the arrival of that once-a-month social check arriving like clock work. They will be the ones that will have absolutely nothing, nada, zero the day that check bounces.
Deficit spending is stealth taxation, the effects of which are indirect and imperceptable but real and powerful.
The debt we are incurring today is like a tsunami wave in deep sea. Impossible to see, but on it's way. When it hits shallow water it wreaks havoc. Are we seeing the first signs of this with the economic crisis?
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