Posts Tagged ‘deficit’

Obama’s Claim that Raising the Debt Ceiling Doesn’t Increase Debt

Posted by Troy on 23rd September 2013 in Current Events

Obama claimed that raising the debt ceiling doesn’t increase deficit spending.  Okay…why does one increase their debt?  So that they can spend more, right?  He mentions some story about buying a truck and then deciding to not to pay the payments.  That’s not the issue.  This is the issue:  Lets say you buy the truck.  Then it turns out that your spouse is spending more money than ever, and you can’t afford the car payments with the current level of spending.  The rational response will be to cut back on unnecessary spending.  You will still pay for the truck, but you will cancel your cable bill.  You will cut off your cell phone.  This is what the Republicans are suggesting.  What is Obama and the Democrats suggesting?  Taking out another credit card.  How would you react if your spouse refused to cut back and instead insisted on taking on more debt?  You would be pissed.  Regardless of the Democrats’ protest otherwise, microeconomics are BASICALLY THE SAME as macroeconomics.  The operations are basically the same.  Finally, does anyone buy this crap about our deficits falling too fast?  When you are in debt, anything that is deficit spending is BAD.  Half of deficit spending is still DEFICIT SPENDING!  It is still digging the hole deeper.  Until we start having MASSIVE SURPLUSES, the Democrats have NO room to talk.

Long Live the Constitution!

Government Assistance

Posted by Troy on 27th January 2013 in Human Nature, Political

In a world where we are going broke, we have proven Lyndon Johnson was an idiot.  He claimed that America could care for the poor of the entire world.  Well, hell, we can’t even do it for the American poor.  Not only that, but assistance offers an incentive to not work.  People live on margin.  If the difference between working and assistance is only a few thousand per year, then my labor 40 hours a week for 250 days a year is really only worth a few thousand, and I’m probably not going to do it.  So this is the way that ALL government assistance should work:

1 – Housing should be provided, but it should be scant.  It should be 300 square foot or less (additional space may be given if children are involved by way of another 8×8 bedroom).  There should be no television hookup.  There should be 7 foot ceilings.  There should be no windows.  If you want something better, get a job.

2 – Foodstamps should be replaced with a non-choice diet.  There are no chips.  There are no soda.  No pre-prepared food.  They should be given surplus food.  Eggs.  Potatoes.  Apples.  Powdered milk.  Dried beans.  Rice/Bread.  The bare essentials.  If you want more, get a job.

3 – In exchange for these benefits, you lose your ability to vote.  The reason is that it creates an incentive to politicians to buy the vote and for the poor to vote for someone just because they promise to steal money from someone else and give to them.

Like all Americans, I want to help the poor, but we cannot steal the incentive to try for a better life.  We have to balance these two.  We can keep people from being homeless and starving by providing them with the bare necessity and nothing more.  The goal is to make life so bland and boring and make them realize that they can have a better life if they just strive for it.

Long Live the Constitution!

DOW crashes – S&P Downgrade – Tea Party Downgrade

Posted by Troy on 8th August 2011 in Current Events, Political

The spin is out…this is the “Tea Party Downgrade.”  This is a complete lie.  S&P downgraded our debt based upon our deficit spending.  The Tea Party is all about cutting the debt.  The Democrats originally wanted just a debt increase without any added income or reduced spending.  That should tell you where they are.  At best, they are at the status quo.  However, prior speeches by key Democrats state that they think that we should reduce the debt but continue to “invest” in our future.  Investing is a codeword for spending.

I said it once, and I’ll say it again.  The only time to have deficit spending is in Congressionally declared war or to fund a major project which is exceptional/temporary in nature.  It is okay to borrow in order to build an interstate system.  However, we cannot borrow to maintain the road system.  Ask any business owner.  They will tell you that it is okay to borrow in order to do a remodel.  However, if you are having to borrow constantly in order to  buy inventory and make payroll, you might as well close down.  If your normal revenues cannot cover your day-to-day expenses, it is unsustainable.

Long Live the Constitution!

NY-26 Kathy Hochul Wins: Medicare, are our Seniors Adult Enough to Handle the Truth?

Posted by Troy on 25th May 2011 in Current Events, Political

NY-26 went to a Democrat.  The news organizations are trying to say that this is the GOP’s watershed moment–that the American people have spoken and loudly proclaimed “Hands off our benefits!”

We’re broke, people.  That’s pure and simple.  No matter how you cut it, we are going to have to cut something.  We can cut defense, but ask yourselves, would you rather have a pitiful retirement plan in the form of Social Security and Medicare, or the world’s most kick-ass army?  The only reason Europe can afford all these social programs is that we are the world’s police force.  If we convert our defense money into benefit money, who is going to protect us?

Things have to change.  That’s all there is to it.  This next election is a turning point.  We are at a fork in the road right now.  We can move towards a welfare state or a freedom state.  A friend remarked to me today how he hasn’t heard anyone use the expression “Hey, it’s a free country,” in years.  That’s because, deep down, we realize that we’re not nearly as free as we used to be.  We live in a world where sending a joke tweet about suicide bombers can land a 13 year old boy in an interrogation room with the Secret Service.  This next election will determine if we want to face the truth and own up to what needs to be done or if we want to believe the lies we’re told and hide our heads in the sand.  If Obama wins re-election and (GOD FORBID) the Democrats take both houses again, we are done.  Period.

You must read 2084.  Everything I wrote about is happening faster than I predicted.  I will get it out this weekend.

Long Live the Constitution of the United States of America!

Budget: Ponder This

Posted by Troy on 7th April 2011 in Current Events, Political

Here’s a question for you to ponder:  How much of the federal budget do you think would get at least 50% approval if it were put to a national vote.  I’m sure the military would get 90% or so.  Roads?  Sure.  NPR?  Maybe, maybe not.  What about federally funded art?  Million dollar research grants to study the digestive enzymes of lobsters (I’ve actually read this one)?  I would guarantee that most of the stuff we spend money on probably is only getting 33% approval, so we have 67% coughing up dough for programs that the 33% wants.  Does that make sense?  In a way, it’s even worse.  Only about 50% of people pay taxes, so in some cases, the 33% of those getting what they want aren’t even kicking any money at all.

State of the Union Address

Posted by Troy on 25th January 2011 in Political

Needless to say, the State of the Union address has deteriorated into mere political hot air.  I personally blame live TV for this.  However, it is still worth discussing.

I find it very interesting that Obama speaks of solving the debt in nearly the same breath he talks about increasing “investments.”  I should imagine that the term “investment” has focus group tested as being more acceptable than “stimulus.” 

First, let’s discuss the comparison to China.  For instance, the super-trains.  In America, we do not invest in things that are economically unviable.  If there was enough demand for these new trains, we would surely build them.  The reason that they are built in China is because the Chinese government can order something built, and it doesn’t matter if there’s not enough demand for it.  It doesn’t have to turn a profit.  The fact of the matter is that any company foolish enough to invest in these new bullet trains would quickly go bankrupt.  Americans love cars.  Plain and simple.  Our economy works differently than the Chinese.  Eventually, economic reality is going to catch up to the Chinese.  It would catch up to us much faster as we actually live (at least to a certain degree) in economic reality.

Second, let’s discuss the deficit.  He talks a great deal about lowering the deficit.  However, he doesn’t discuss the only thing that will save the deficit: getting rid of entitlements.  Govenment programs all start out with the best intentions.  Welfare was intended to help war widows.  What happens is called mission creep, where the program just continues to grow.  As these programs grow, you have the unintended consequence of people choosing to partake of these entitlements rather than work.  In the case of Social Security, people will merely spend their excess money rather than put it into their retirement savings.  Each entitlement is a sinkhole. 

Finally, let us end with a discussion on illegal immigration.  Every attempt of “immigration reform” which involves giving a “path to citizenship” for any group here illegally only gives yet another incentive for illegals to come here, particularly with their children.  From where do you think the money to pay for college for students under the DREAM act will come?  I have a feeling that it will be from scholarships which could have gone to American citizens or our tax dollars.  I will say, students who are here on a student visa who excel in their field of study should be given a path to citizenship as a way of keeping top prospects on our side.