New York Post\America’s
Debt Rage Boils Over/ Angry Calls and Emails Wallop DC
Americans are fed up, and
they're letting Congress have it. Furious over the
bipartisan foot-dragging on the nation's debt crisis, the US
public yesterday unleashed a massive barrage of phone calls,
e-mails and even a nasty Twitter campaign to vent their fury
over DC's dithering over the debt ceiling.
“Short Takes” has been inactive for the
past several months. That is because there has been
virtually nothing to talk about.
In January, I said “The long term health of our economy
and the capital markets depends on the government lowering
its overall spending. For the next several months I will be
highlighting political issues as they relate to government
spending.”
So far this year spending cuts are more a talking point than
an action item. This changes nothing. We still must cut
spending, and we must do it now.
But right now, Congress must approve a routine increase in
our debt level, and many of the new conservative Republican
Congressmen elected last November will not vote for a debt
increase unless it is tied to spending cuts.
This has the liberals and Obama up in arms. This past Monday
Obama made a national speech calling for more taxes on the
group who already pays almost all the taxes.
He also talked in vague terms about spending cuts. Judging
from some of the deficit reduction plans proposed by
Democrats so far, the cuts, if any, come many years from now
and the tax increases come now.
Over the past 60 years, Congress has voted tax increases
many times. And every time we increase tax rates, tax
revenues fall. Raising tax rates lowers tax revenues.
Obama and other liberals are proposing higher taxes on “rich
people”. We already know this will result in lower tax
revenues.
Why would anyone in their right mind propose a policy known
to always fail?
The answer is simple, because it has an emotional appeal to
many people.
Obama’s proposal is doomed to irrelevance. Apparently,
Congress had already excluded him from continuing
participation.
Our deficit is dangerous. Last year it was $1.5 trillion.
This year it is still $1.5 trillion. Clearly, we have made
no progress. States like Wisconsin and Ohio have made
progress, but there has been NO PROGRESS on reducing
Federal government spending.
Many in Congress understand the absolute necessity of
absolute cuts. No phony accounting or other tricks, but
absolute year over year cuts in expenditures.
We must, must address the three largest spending accounts,
defense, Medicare and social security. We need to withdraw
from Afghanistan, not because we should, but because we
cannot afford it. We need to increase the eligible age to
receive social security by about 10 years. This is not to be
mean spirited. It is because we cannot afford the past
promises we made to ourselves. The promise must be modified.
Increase the eligible age. The eligible age for Medicare
also needs to be increased and beneficiaries need to pay
more of their healthcare bill.
The Congressional game of chicken currently in progress
needs to end with higher debt and lower spending… much lower
spending.
For the past several months, there have been innumerable
trial balloons. Initial talk of budget cuts cumulated to
less than $100 million. Any Congressman that wants to be
taken seriously needs to propose cuts of $1,500 billion.
That is what it will take to balance our budget.
For the first time since last
November’s election, we may be at the point of starting to
cut spending. Let’s hope it is not business as usual in
Washington. Let’s hope it is not like Congressman Phil
Gingrey, R-Ga. says, “I’ve been here nine years and all the
promises we make to cut spending never seem to occur. I've
never seen it happen yet."
Let’s hope it is different this time.
Voters are angry with the lack of leadership, but it still
remains to be seen if they understand the financial peril we
have put ourselves in.
