Debt and Deficits - Know the Facts

It is important this November that people be informed.  If you don't know the issues, you have a responsibility to learn them.  Do not rely on what either party tells you.  Do your own research and may your own decision.  Don't just spout the talking points of either party.

You have a responsibility to make an informed decision, and not simply vote for someone you are told to vote for.  Please consider how your decision will affect you and your children and their children. 

With the welfare of our children in mind, let's consider for a moment the massive debt that has been accumulated the past four years.  While some will choose to blame George W. Bush for all the spending, it ignores the bigger issue - We have spent $16 trillion more than we collected in taxes so far as a nation.  $10 trillion of that has been accumulated by just two Presidents - Bush and Obama.

In 8 years in office, the national debt increased $4.7 trillion, under George W. Bush.  In the past 4 years, the national debt under President Obama has increased $5.1 trillion.  At this rate the national debt will be in excess of $21 trillion by the next Presidential election.  That would equate to over $185,000 per taxpayer. 

The path we are on is unsustainable!!  In the past 3 years the Senate has refused to produce a budget, the President has proposed budgets that continue to spend more than we have, which continues to add to the deficit.  These budgets have been a disgrace to the American people and have shown the lack of concern for addressing the fiscal issues in our country.  We need leaders who will deal with the fiscal issues at hand and not simply kick the can down the road.

Every individual in this county knows that you can not continue to spend more than you make.  Most households learned this the hard way during the economic crisis and the Great Recession.  So what did people do, they cut spending!!  What a novel idea.  Perhaps we should let a few of these people who had to tighten their own belts take a stab at trimming the Federal Budget.  I am sure they could find some ways to reduce spending.

Major corporations and small business also know the they can no continue to operate in lean times the same they did during peak times.  They learn to improve efficiency, delay capital spending and in some cases need to downsize, so that the size of the business is commensurate with the value generated.  These are really simple concepts that the public sector just doesn't seem to get or chooses to ignore.

During the good times, government was able to grow, unchecked as revenues were pouring in and there was a seemingly endless supply of cash, but that growth in government is never a one time expenditure.  Most all government spending is in perpetuity and only increases over time.  Once a program starts people find it difficult, if not, impossible to stop any Federal Program.

It is time for the Federal Government to start acting behaving like adults and face that fact that all of the Federal programs, can not be supported in the current economy and with current revenues.  As I pointed out yesterday, even if we tax 100% of all the revenue of everyone making over $200,000 per year we don't even begin to chip away at the deficit.  Unless and until we deal with the excessive spending we will not lower the deficit and the national debt will continue to rise.

Cutting spending is never easy, but neither is cutting back on the household budget, but we all do it and we all live through it.  We find a way to make it work.  We need our elected representatives to do their job and quit playing politics.  It is our money they are spending and we should demand that they only spend no more, and preferably less than we give them.

The debt issue is real and is an issue every household can relate to.  What would you do if this was your household budget?  Do you think any bank in the country would let you borrow $40 of every $100 you spend?   Clearly, you and I could not get away with what our Federal Government and many of our State and Local Governments are doing.  We need to demand balanced budgets and expect the same fiscal discipline you and I have to exhibit in order to keep a good credit rating. 

The decision you make in November, not only for President, but for all elected positions will determine if we address our fiscal issues or if they will become the next crisis we face.  If you thought the financial crisis was painful, just wait until we fall off the fiscal cliff.

Taxing the Rich - The Math Doesn't Work

This is a great piece that effectively and unemotionally explains the problem facing us as a nation with our excessive spending.  We hear all too often that all we need to do is tax the rich and get them to pay their fair share.  While that might sound like a great idea, the facts don't support this claim.  If people would just check the facts and challenge politicians to be honest, we could have an open honest discussion.  The political bickering is not helping us solve the problem.

Even if you tax everyone making $200,000 or more 100%, you won't collect enough to pay down this year's deficit, much less make any progress on reducing the $15 trillion we already spent that we didn't have.  Government has grown beyond our ability to pay for it and it is time the government, do what every business has had to do in tough times - downsize.


We need to quit demonizing the rich and get back to encouraging people to be innovative, take risks and excel.  We have rewarded complacency and what started as a safety net has turned into a way of life.  The intent of government assistance was exactly that assistance, not a sustained stream of income and benefits for life.

You can't make an informed decision in November if you don't educate yourself.  Take some time and watch this video!!