The American Century Dictionary defines Bankrupt as "Legally declared
insolvent." Insolvent is defined as "Unable to pay one's debts."
The
majority of Democrats, and a surprising number of Republicans, believe that the
Obama Administration is on the right course to save the nation's financial
system. The same Democrats that screamed bloody-murder over George W. Bush's
spending habits, spending sprees that I also was in grave disagreement with, are
now proclaiming that not only will President Barack Obama's massive budget
proposal not bankrupt the country, but that deficit spending into the trillions
of dollars is what is necessary to save us from a looming sequel of The Great
Depression.
Republican House Representative John A. Boehner, the House
minority leader, said recently in defense of his idea to freeze government
spending that, "We simply cannot afford to mortgage our children and
grandchildren’s future to pay for this big government spending
spree."
Imagine, if you will, and I will use myself as a hypothetical
example, that I had hit some hard times. Investments were going sour, logging
and construction downturns placed a burden on my financial well-being, and my
wife and I were no longer able to go out to fine places to eat, or attend
entertainment venues that we would normally frequent. Cooking at home takes
work, after all, and tightening our belts and curbing our spending habits would
take away from our ability to participate in a lifestyle we have been enjoying
for years.
So, one night I sit down with my wife and say, "You know, the
way to help our economic situation is to create in influx of cash so that we can
get things moving again. That way, with all of that extra cash, we can go out
and buy the things we feel we need to buy, and not have to spend so much time
worried about trying to juggle the bills."
She decides to agree in this
world of fantasy, and so we max out our credit cards and get more of those
little plastic devils so that we can use them for whatever we desire. After all,
we need to fix the infrastructure of our lives by buying new cars, adding on to
the house, building an additional structure on our property on the Oregon Coast,
and pulling out our driveway and replacing it with new concrete - oh, heck, its
free money, we might as well lay interlocking bricks. That way, it is more
appealing to guest that visit too.
Eventually, the credit cards become
too much for us to manage. But, hey, no problem, the 80 acre place in Oregon is
paid off, and even with the slow down in real estate it is worth more than one
can shake a stick at, so we can just borrow against the property. We'll set up
an account that allows us to write checks, that way the equity is fully
available, and always at our fingertips.
During the time period of all
this money flowing in we go out, buy new cars, and live it up. Those around us
proclaim, "Gosh, even with the economic difficulties this nation is facing, the
Gibbs' family is doing well. I wonder how they do it?"
What is that you
say? Eventually I will have to pay back all of that money I created by financing
myself up to my eyeballs? No problem, the creditors will stay off my back just
long enough for me to die of old age, and then my kids can worry about it. No
worry. They'll figure something out.
Obviously, the high deficit world I
created in the above scenario would be a foolish way to run my household. As a
business owner, trying to fix an ailing business by going into deeper debt would
be foolish as well. So I ask this: If it is the wrong thing to go deeper into
debt to create an influx of funds, and if it is wrong to just leave the worries
of it to my children and grandchildren, as an individual or business owner, then
why would it be the right thing to for the United States
Government?
Historically, raising taxes and increasing government
spending creates more harm than it helps. Lyndon B. Johnson and Jimmy Carter are
great examples of that. And don't give me this "Obama is cutting taxes" bull,
either. Taxes are being raised in ways that we don't even recognize them as
such. Fees and licenses and fines for regulatory disobedience are all taxes, in
my book. Even the simple little Business License is a city business tax, even
though the word tax is not present. While quacking like a duck, even though the
animal has a name tag that says hyena, does not make a duck suddenly a hyena.
Eventually, the Democrat's spending, led by Barack Obama, is going to get so
massive, and it is already beyond the abilities of the top 5% to shoulder the
full burden, that Obama will tax as Democrats always tax - massively along all
points of the economic spectrum. Uh, that means you, too. You will all feel the
pain of an Obama Administration frantically trying to gather more funds after
everything begins to collapse further.
Early during the last century a
recession loomed on the horizon, and Presidents Harding and Coolidge were fiscal
conservatives that adhered strictly to the U.S. Constitution. As the economic
times were becoming more difficult, as they are now, Harding, and then Coolidge
later, cut federal spending and cut taxes. As a result, people were able to do
more with more, and their incomes rose, increasing revenue while stimulating the
economy. The boom years of the 1920's followed.
President Hoover, a
fitting predecessor to the socialist stylings of Franklin Delano Roosevelt, was
not anything like his fellow fiscally conservative Republicans. Hoover, as
Roosevelt would later, piled up big deficits to support huge public-works
projects. Federal spending soared during the final years of the roaring 20's and
into the early 1930's. In fact, federal spending increased by more than 50%, the
largest increase in federal spending ever recorded during
peacetime.
Public projects Hoover decided to undertake included the San
Francisco Bay Bridge, the Los Angeles Aqueduct, and the Hoover Dam. Yes, I know
these are wonderful projects that we benefit from to this day, and the world is
a better place with them, but was this the best thing to do as the nation was
entering into The Great Depression? Sure, Hoover became very popular with the
labor forces that participated in the projects who were convinced by government
to refrain from cutting wages as the economy fell. But was it government's
responsibility to correct the market? Or was it the fault of central planning,
protectionism (like the Smoot-Hawley tariff), and central banks like the Federal
Reserve System controlling the economy (that became known as the New Deal later)
that caused the economic upheaval, and extended it well into the
1940s?
Like with the Obama Administration, where the market seems on the
surface to have failed, the government stepped in to protect the common citizen,
increasing spending to do so, therefore creating debt - and in Obama's case,
writing checks on money that doesn't even exist, and in turn devaluing the
dollar.
I know that the Liberal anti-truth machine is even now rewriting
history, proclaiming that Hoover, contrary to popular opinion and factual
historical text, was actually trying to balance the budget by cutting spending,
and it was those actions that caused The Great Depression. Robert H. Frank of
the New York Times even goes so far to "lie," I mean "say," that Hoover not only
actually cut spending, but that there is a consensus out there among economists
that cutting spending is a huge mistake.
Do you hear that? Balancing the
budget, cutting spending, and essentially being responsible with the American
Citizen's tax money is a bad thing? Putting less on the credit cards will harm
us? Mortgaging America into bankruptcy so that our children and grandchildren in
their lifetimes could never pay it back in full is the right thing to do to
stimulate the economy? Are they insane?
Owing more than you have coming
in, in other words, deficit spending, is a one way ticket to bankruptcy. It was
wrong when George W. Bush did it, and it is wrong now. The Free Market is
self-correcting. The people know best, not the government. The size of
government has been steadily increasing over the last twenty years under the
very moderate Bush Family, Bill Clinton, and now Obama (with a short spurt of a
balanced budget that created a surplus that was engineered by the House
Republicans led by Newt Gingrich during the nineties, of which The Left loves to
give the credit to Bill Clinton on). If an increase in the size of government is
such a good thing, and if deficit spending is what helps the economy grow, then
tell me: After all of these years of deficit spending and a constant expansion
of the federal government, why is it that we are in this financial mess? Could
it possibly be that the seems of our economy are busting loose because of
government intervention in the Free Market? Could it possibly be that the Free
Market is trying to adjust after a decades of artificial manipulation by the
United States Government? And since when is ever financing ourselves into
oblivion a reasonable thing to do?
The Obama Administration, and the
village idiots that populate the U.S. Congress, are bankrupting us. And what is
most concerting about it is that a large segment of the U.S. population is
actually greeting this destruction of the American financial system with
thunderous applause, and mindless approval. Our founding fathers, President
Harding, and President Coolidge would be disappointed. We have truly lost our
way, and the Pied Pipers of Washington are leading us to a cliff. It is
essential that we turn this around with fiscal conservatism, or else in the end,
like the rats in the river, we will be drowning as a result of our own
stupidity.
-- Political Pistachio Conservative News and
Commentary
Five Myths About
the Great Depression by Andrew B. Wilson
When
‘Deficit’ Isn’t a Dirty Word by Robert H. Frank