President Franklin Roosevelt’s advisor Harry Hopkins is credited with saying: “We will tax and tax and spend and spend and elect and elect.” He later denied it. Still, it fairly describes the then and subsequent campaigns and governance by Democrats. Less attention is paid to the Republicans on this account but it’s worthy of notice that the GOP has never reversed the trend when it has taken charge, just as it has never ‘fixed’ the deplorable public school system. And while our present deficits are running on Democrat steroids, they came from a Republican administration beforehand.
Today, the Democrats’ President Obama presents budgets that plan to spend far more than the government receives in taxes. That difference between desire and reality reflects amounts borrowed, from China and Japan, from Americans and from the Fed. A key difference among these creditors is: The Fed doesn’t have the money it lends; it just prints it up as needed, while the others first must earn what they lend.
President Obama has a new budget for Congress; as usual, spending far more than is available. The Republicans as usual, are complaining about that, although they have been authorizing the spending all along; it can’t occur without them. All know that the more dollars printed, the more diluted is the value of a dollar. If your wealth is denominated in dollars, sooner or later, you lose value for every one they print.
Now, the Democrats force fake spending forecasts by dishonest laws and the Republicans publicly deplore deficits while authorizing the spending bills, to which both parties continue to add tons of pork.
The Chief Actuary of Medicare recently published his required annual report on Medicare’s financial outlook. He was required by the Obamacare law to assume a continued decline in government spending on healthcare for his projections instead of using his professional, technical judgement as an actuary. So he published his report, showing increasing government ‘savings’ on healthcare by virtue of Obamacare. But he added an addendum saying that as a professional, he didn’t believe; that the costs were going up, instead. The deficits would grow. His ‘retirement’ followed soon afterwards. It is becoming wise to assume government reports and projections are well, take your pick: ‘politicized’ or ‘dishonest.’
The problem is with the Hopkins formula; it put “tax and tax” ahead of: “spend and spend.” While the “spend” is popular, the: “tax” is less so. So we have been seeing the electoral promises resulting in inflating the spending faster than any politicians have had the political courage to inflate the taxes. That is why Medicare and Social Security are proliferating the deficits. You may add to that, the expense of our rickety, overseas wanna-be imperium, needed to satisfy President Eisenhower’s (1961) military-industrial complex.
The President and his Democrats are trying to add enough taxes to catch up with the runaway spending by collecting only from the “rich.” Unfortunately, those are too few to cover the gap, so everybody else has to pitch in. Since the Dems don’t want to admit they are taxing any of their entitled folk, you get higher health insurance premiums and taxes on medical equipment, some home sales , health insurers and all sorts of things that will end up paid by poor as well as wealthy folk. However, we’re not supposed to notice.
This flies in the face of basic economics: When business is poor, consumers restricted and unemployment widespread, raising taxes is a fundamental no-no; in a favorite simile, you don’t transfuse a sick patient with blood you have just drained from him. But the cost of Obamacare is a huge hit on the economy when it is already down. Nobody seems to notice, including the GOP. Huh…
See, the Affordable Care Act is unaffordable because it’s added to the Social Security and Medicare that we already can’t afford. And all the new taxes that will burden the sick economy still aren’t enough to cover the cost of Obamacare. The President and the Democrats have somehow, used our lack of money to justify a spending binge and nobady has called them on it…even Senators Cruz and Rand Paul, so far as I can see.
We have to throw the bums out…all of them! If we still can…