Thursday, April 28, 2011

Are we too far gone?

I read this week that for the first time more people in the US are on government assistance than those who are not. In other words, there are more people riding in the wagon than are pulling it.

At first that statistic is hard to believe until you think about the growth in government assistance during the Bush administration, and even more so since the Obama administration took over. In addition to the normal entitlements like social security, Medicare, Medicaid (and if Obamacare becomes law 50 million people getting assistance with their insurance premiums), also consider the following:
Forty million people on food stamps; millions more on welfare; 99 weeks of unemployment insurance; subsidies for people whose mortgage is in default; school lunch programs; college assistance programs; remember "cash for clunkers"?; how about $7500 government assistance if you buy a GM Volt?. In addition there will be unforeseen government assistance to victims of natural disasters - floods, hurricanes, tornadoes, earthquakes, etc.

It is not my intention to debate whether or not all of these programs are necessary. I'm sure many are vital and there is no question the "baby boomers" are presenting a huge financial burden on this country. BUT WE HAVE NO MONEY! The national debt is insanity and approaching a level that will be impossible to overcome. Are we too far gone?

The debt is at $14.5 trillion dollars (and climbing) and is so large that most Americans cannot even comprehend it. To put it in perspective we are borrowing $188 million every hour. Congressman Paul Ryan recently proposed a budget that will "reduce" the debt by $6 trillion dollars in ten years. It was immediately dismissed by democratic politicians and president Obama as "radical". Now let's see, this so-called radical budget will reduce the deficit to just $8.5 trillion by the year - 2021, this is assuming no major disasters, terrorist attacks, wars, etc.

Next week will be a debate about raising the debt limit. If the republicans and moderate democrats vote to raise it again, you will have the answer - we are too far gone. Politicians talk about a 'Balanced Budget Amendment" to the Constitution. Realistically that would take 5-10 years, even it if received affirmative votes throughout the very complicated process. Here is my idea for a quick balanced budget amendment - freeze the debt ceiling permanently and tell the US government "that's all folks". Make interest payments first, then tell the managers of our government agencies to divide up the balance and do whatever is required to keep the country functioning. It could be painful, but as simple as that.

We approach the debt limit in just a week and what action do we see in Washington? While Obama goes on Opra and gives press conferences about his birth certificate, our politicians enjoy the remainder of their two week "spring break".

1 comment:

Anonymous said...

This is scary stuff for sure. I still see hope for an economic recovery if those in charge basically do an about-face. This could happen with a good election or two. The more alarming question as I see it is this: Is America too far gone spiritually? I might be somewhat cynical spending so much time on a college campus, but America is experiencing what appears to be a self-imposed dumbing down. People wouldn't be so dependent on the government to take care of them if they were focused on God and used their God-given abilities to provide for themselves and their families and educate themselves in the things that matter. The reason this country became great is that God-fearing free-thinking hard-working people desired the opportunity to carve a living for themselves out of the wilderness and raise their children with godly principles. Unless we get that American spirit back in this country we are too far gone in ways much more heartbreaking than economics.

-Ben Gregory