Saturday, March 27, 2010

Debt rises to incredible heights yet Americans are blind

This morning I am reading Star Tribune and various other news sites I follow when I came across this headline: CBO report: Debt will rise to 90% of GDP (http://www.washingtontimes.com/news/2010/mar/26/cbos-2020-vision-debt-will-rise-to-90-of-gdp/) in the Washington Times. The headline enough raised my ire and should every American. Now, I have been railed against for my push of smaller government, more freedom and lower taxes platform. I hope this article puts things in perspective for those that believe I am "chicken little" on the size and scope of government.

The article notes that the Federal public debt when Obama took office was $6.3 trillion or $56,000 per household. That number has expanded to $8.2 trillion or $72,000 per household today. The CBO estimates that by 2020 we are on path to reach a debt of $20.3 trillion or $170,000 per household. I understand and acknowledge that Republicans, especially under Bush, lost their fiscal conservative way which lead to the historic election of Barack Obama. I recall last year when the unemployment rate hit 10% Vice President Biden noted that the Obama administration did not realize how bad the economy was and their numbers were off.

James Horney, a federal-budget analyst at the liberal Center on Budget and Policy Priorities, said, " The biggest part of the deficit difference [between the Obama's administration and CBO numbers] is lower tax revenue due to the different economic assumptions." Horney is correct that the Obama administration has a rosary outlook but it is that thinking that tripped them up last year as unemployment surpassed 10%. We need to get Americans back to work and being productive. Too many of our manufacturing jobs are being outsourced and due to our mounting debt America is put in a conundrum. The conundrum is protecting America jobs while not alienating our ATM; China.

Sure the Fed could print money hand over fist but that will only lead to inflation and a deeper recession. So how do we jump start the economy and reverse the trend this article warns? To start we need to demand that our government go on a diet and that Americans be held accountable for their actions. Right now Obama is proposing incentives that will encourage banks to rework mortgages that are underwater for those that are unemployed. This new incentive will create more debt for taxpayers and further our co-dependence on Government solutions. It is unfortunate that people are losing their jobs and making the house payment is tough but that does not mean the government is the answer.

When will Americans realize that entitlements, cash for clunkers, tax credits and health care reform legislation are only hurting the future of America? We need to wake up and demand that government shrink and allow the private sector be allowed to work. We need to demand that more States Attorney General join the fight for State Rights against the growing tyranny of the Federal Government. Obama did not start us down that road but he is standing on the accelerator with both feet.