Tuesday, November 22, 2011

Don't blame the Super Committee

Don't blame the Super Committee for not being able to cut spending. They cut $2 Trillion over 10 years six months ago, and now they can't cut $1 Trillion over 10 years now.
A few important facts should be remembered:
FDR created the Welfare State in 1933. Today we call it the Nanny State. 8 years later, in 1941 the program was broke.
Lyndon Johnson created the Great Society, which sealed the welfare state. It also failed.
Richard Nixon's wage and price freezes were supposed to help balance the economy. Without a tax freeze, the government could still swindle the American people. Another epic failure.
Jimmy Carter had his "stagflation," and his Community Revitalization Act which opened Fannie Mae and Freddie Mac loans to people who couldn't afford them. During his 4 years we had a 20% prime rate, the highest in American history, and the deepest recession since WWII.
Ronald Reagan had an 8 year battle with the ghosts of the past, and an uphill fight against politicians on both sides of the aisle. When he left office there was a plan in place to pay off the national debt within 35 years, and reverse the trends of the past 40 years. Unemployment was at a 20th century low of 5%, inflation dropped to 4.7%, 17 million jobs had been created, and fewer companies moved overseas. Reaganomics had a simple 3-tier plan. Cut taxes, reduce spending, and stop borrowing.
Bill Clinton gave us one of the biggest tax increases, and one of the biggest single administration foreign debts in American history.
G. W. Bush made a weak attempt at cutting taxes. He tried his hand at Reaganomics, but he forgot to cut spending. Until '06 he at least kept his failures somewhat in control, but in the 2 years after the '06 elections, all bets were off with a tax and spend congress.
Today we have Barack Obama. What can I say. America has moved closer to Leninist Socialism and seen more money spent in such a short time than any administration in history. He is fond of saying "I inherited a $1.3 Trillion deficit from my predecessor." Unfortunately, like every other tax and spend progressive, he only tells one side of the story. He doesn't tell you of his record setting spending spree. Mr. Obama grouses about $1.3 Trillion in January, 2009. Let's look at this a little more closely:
$787 Billion Stimulus: Failed.
$525 Billion Bank & Corporation Bailout: Failed.
$410 Billion Omnibus Spending: Failed.
 $60 Billion GM, Chrysler Bailout: Failed.
  $8 Billion S-Chip Program: Failed.
  $3 Billion Cash for Clunkers: Failed.
$1.793 Billion Total. He complains about inheriting $1.3 Trillion from an 8 year administration, and ignores the fact that his administration spent nearly $1.8 Trillion in just 2 years. On top of that, new unemployment is up more than 4%.
Don't blame the Super Committee for not being able to cut spending. The Super Committee is made up of members of Congress. The very same people who gave us the crisis we are in now.
Republicans want to cut spending and taxes.
Democrats want to raise taxes and entitlement spending.
If nothing is cut, nothing is saved.

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