“It’s The Spending, Stupid.”

The Toronto Sun reported:

Wars and tax cuts not responsible for U. S. deficit

How did the United States get into this debt mess?


President Obama blames both parties, and he’s right. But the real question isn’t who did it, it’s how. The answer is social programs.


America’s previous debt problems all came from major national emergencies, beginning with the Revolutionary War. The Civil War saw debt skyrocket from $65 million in 1860 to $2.5 billion in 1870; World War I from $2.6 billion in 1910 to $26 billion in 1920; World War II from $43 billion in 1940 to $257 billion in 1950. But when the clearly defined crisis ended, so did the extra spending, and the debt stabilized.


Even the Cold War produced little borrowing; 1960’s $290-billion debt was just 13% higher than in 1950. But then it exploded: $389 billion in 1970; $930 billion in 1980; $3.2 trillion in 1990; $5.7 trillion in 2000; and 2010’s $13.6 trillion.


Still, to say the debt is at record levels is not, by itself, to say much. Between economic growth and inflation, a debt that was horrifying in, for instance, 1840 would be laughable today. (Since you ask, it was $3.5 million.)


The best way to gauge the seriousness of government debt, though far from perfect, is by its share of GDP. That measure shows U.S. federal debt staying under 40% even in the Civil War and World War I, rising a bit above it in the Great Depression, spiking in World War II at over 110%, then falling steadily to under 30% by the early 1980s. Then it rebounded and, after a dip in the late 1990s, shot upward.


A “discourse” on the left blames it all on the right. The Toronto Star’s Heather Mallick just blamed this year’s $1.4 trillion deficit on “George W. Bush’s tax cuts and by Barack Obama’s continuing to wage two unwinnable, unaffordable wars and starting a third in Libya”. But it just ain’t so.


Tax cuts cannot be the culprit because the United States does not have a revenue problem. For six decades federal taxes took an average of just under 18% of GDP and, after a sharp recessionary dip, are heading back that way.


The U.S. has a spending problem. From an average of just over 18% of GDP from 1950 to 1974, federal spending rose to an average of 20.8% from 1975 to 2007 then shot up to over 25%. And not on wars: at $666.7 billion in 2010 (about 4.5% of GDP) the military budget is less than half the deficit. Moreover, defence’s share of GDP fell from nearly 15% in the early 1950s to under 10% by 1970 to under 5% by 2000 yet the budget was not on fire in the 1950s or even 1970s.

Absolute Best Plan To Stop Deficits

Warren Buffett, in a recent interview with CNBC, offered his solution for all this drama about the debt ceiling:

"I could end the deficit in 5 minutes," he told CNBC. "You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election."

The Perfect Storm Our Fearless Leaders Have Created For US

The perfect storm has been building for decades as government grows larger, more powerful and less effective, as unions invade our public sector, as private enterprise is ridiculed and Americans who cherish life and liberty turned their eyes in hopes it would all go away. Each year workers expected more and more for less and less. Each year students have been taught how evil our country is. Each year the government supports failure in economic terms that are staggering. Each year the news we receive is less and less tethered to reality. Each year government found another entitlement. Each year government spent more and more. Each year government told us it was going to be fine because they were here to protect every facet of America. Each year, they all lied and took and never gave back. Yes, a perfect storm has been created.

So, Obama has single handedly created our recovery. Rejoice all ye blind supporters and economists, but I repeat myself. Our fearless reporters, at least those that can tear themselves away from manning the bollocks, will speak of the great unknown we are emerging from into the glowing unknown we are entering and how wonderful it all will be.

Union members are in for a rough row. They will win a few court battles to regain some turf and they may win some state referendums to overturn legislation that actually puts them more on par with the private sector and, gasp, holds them accountable. All the tens, possible hundreds, of millions they will spend will further weaken them and hasten their demise because unions represent all that has become wrong in our economy. They are the tip of the storm. The perfect storm.

Tepid, at best, job growth is with no income increase, in fact, lowered income for those not working for government and unions which are becoming the same thing. AFSCME alone has 3,500 local unions spread across 46 states that gave $87.5 million split between Democrats and Republicans 98:1 respectively. They all got raises above the national norm and have almost ironclad job protection. Not so amongst workers in the private sector.

Job growth is trying to occur in an economy that is deeply in debt with more debt, and the incredible interest on that debt, growing each day. That means our workers are working for China and other countries that own our debt and to exacerbate the problem, 40 cents of every dollar spent by the federal government is borrowed. Probably from China. Our enemy. China, a country that wants our wealth, but will not abide our liberty and freedom because a slave master doesn't like those things. Our new master will also dictate jobs, growth or no growth, and how much salaries will be allowed.

Also part of our perfect storm is our future. All the protected teachers and professors are training their students, not for entrepreneurship, manufacturing, invention and other basic necessities of our economy, but for  standing in line for jobs that only illegal immigrants will fill.

Yes, every Pierpont Watson Willowpoint III will look forward to utilizing that degree for standing in line for a deep frying position that he will lose out for by someone named Pablo. I wonder if Pierpont's living trust will have clauses pertaining to employment as a necessity for Pierpont's annual withdrawal from the trust? I do hope his worsted wool doesn't retain the malodor of Harry Reid's great unwashed.

There are so many factors in a perfect storm. These are but a few that undermine our hopes and dreams. Others, such as liberals in congress that spout studies made up by union protected workers in an attempt to stop any cuts to their pet reelection programs such as bridges to nowhere. And there are others that actually are beginning to publicly say that they want to undermine our way of life by undermining our economy with socialism.



It is a perfect storm of historic stupidity and it may be the ruin of us all.

Dear Government, Where's The Damn Money Gone?

Dear Government,

Everyday you get and spend billions of dollars. From coast to shining coast the money flows like honey to and from one government entity to another with some falling into the economy.

Each hour people pay taxes on everything they eat, drink, think, sell, buy, drive, see and touch. Each minute we hear dire economic news, police being laid off, schools closing, firemen without equipment, hospital shortages and banks being closed.

Where is the damn money going if it is not going to fix those things we pay taxes for? Please don't put some bureaucrat on TV spouting micro this and macro that and the needs of left winged pouty puss wrens. Make it simple. It's time for you dear government to offer some explanations.

You have spent trillions and we got nothing to show for it? Why? Who spent it and is spending it as we speak? Where's it being spent?

We'd like to know instead of you all making speeches about nothing. Where did the damn money go?

Inquisitively,
Your employer

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