This weekend, Sara Mohsin joined me on the program. Sara is the co-owner of a small business called Mohsin Mortgage Corporation. Sara and I discussed President Obama’s proposed $3.8 trillion budget and the response of the American people to the current state of our economy. Sara spoke as both a small business owner and a lender to businesses and families. The bottom line is that President Obama’s budget dramatically increases spending, putting the United States Government on an unsustainable spending trajectory into the future. Sara said that from her perspective the tax increases imbedded within Obama’s budget will translate into lower investment and spending by both families and businesses. Sara and I agree that Keynesian economics simply do not work. Taking money away from ordinary people and businesses in the form of increased taxes and borrowing which must later be repaid (so the government can spend more on political priorities like tunnels to casinos and free cell phones for low income people, etc. etc. etc.) does not grow the economy, it shrinks it. People spend and invest their own hard earned money much better than government which acquires that money through coercive taxation.
President Obama’s proposed budget includes a record $1.6 trillion deficit for fiscal year 2011! This deficit is $300 billion greater than last year’s deficit which was driven by what were originally supposed to be one-time measures to fight the financial crisis and economic recession! And even with optimistic estimates for economic recovery, the President’s budget will still create deficits in excess of $1 trillion for each year into the foreseeable future. The bottom line is that under President Obama and the Democratic Party controlled Congress, U.S. government spending is completely out of control! In November we must send as many of these liberal progressives packing as we possibly can!
More on President Obama’s Budget
Last week President Obama himself acknowledged that “responsible families don’t do their budgets the way the Federal Government does. When times are tough, you tighten your belts. You don’t go buying a boat, when you can barely pay your mortgage. You don’t blow a bunch of cash on Vegas when you’re trying to save for college. You prioritize. You make tough choices. It’s time your government did the same.” Yes Mr. President, it is time that YOU do the same and stop spending the tax-payers’ money (our money) irresponsibly. Unfortunately, after acknowledging the spending problem, Obama continued with, “That’s why I continue to insist that we put more money into education. That’s why I say we put more money into science and technology.” Does this sound logical to you? I really do want to see this man’s college and graduate school transcripts just like every other President! No doubt there are reasons why they have never been made public!
President Obama appears to have lost touch with reality, which is probably why he offered Congress a budget that “doubles down” on the failed tax, borrow and spend economic policies of the “progressive” movement.
President Obama is wrong to play class warfare and attack “the rich.” Most of the people and businesses that earn over $200,000 per year are the people and businesses that create jobs and economic growth for everyone. Attacking business and “the rich” is simply an attack on our economy and on a key part of America’s strength in the world. But even if you accept Obama’s brand of demagogic class warfare, he is still breaking his previous commitment to the American people (this President seems never to have learned the value of his own word) because his budget proposal increases taxes on everyone – not just Americans with annual incomes over $200,000. Even if the Democratic Party Congress and President Obama extend the Bush tax cuts for the poor and middle class (doubtful), and even if they find the time to extend the Alternative Minimum Tax patch for 2010 (which in spite of repeated promises, they still have not done), the poorest tax payers (along with everyone else) will still see their taxes increase, because President Obama has proposed phasing out his “Make Work Pay” tax credit of $400 per person. And this is on top of the huge new direct and indirect taxes on energy and health care that Obama has proposed for everyone. Remember his famous statement about how under his energy plan, “electric rates will necessarily skyrocket!”?
Obama’s budget increases our national debt by a record $1.6 trillion this year alone, and threatens to more than double our debt from $7.5 trillion in 2009 to $18 trillion by 2020. The President’s budget expands the federal government by 3% of GDP over 2007 levels. It includes another $100 billion stimulus bill, even though $500 billion from the 2009 stimulus has yet to be spent. This year (in part because of the 2010 census, but also because of dramatic increases to the number of full-time civilian and military employees) the total federal payroll will increase to a post World War II record 2.15 million employees, a 40% increase over last year. Additionally, last year for the first time in American history, a majority of all union members in the country were government employees. Unions are vanishing among private sector businesses which must provide competitive products and services. But in the government sector where tax revenues are forced from people and businesses that must pay taxes even when the SNOW IS NOT REMOVED FOR THREE DAYS, unions are flourishing. Yes, the big growth industry today in America is tax consuming, unionized government, as opposed to any wealth and tax producing private industry.
Last week, after months of denials and ridicule of those who pointed out the truth, President Obama finally admitted that he lied – that his healthcare plan would not have allowed all Americans to keep their current healthcare coverage or their current Doctor. The scary thing is that with the help of closed door negotiations, and special buy offs for individual Senators and union bosses, ObamaCare almost became law. Furthermore, supporters of this healthcare bill – including the President himself – vilified conservatives who claimed truthfully that ObamaCare would cause millions of Americans to lose their current coverage. But in the wake of Scott Brown’s special election victory in Massachusetts, Obama stated “we said from the start… if you want to keep the health insurance you got, you can keep it. That you’re not going to have anybody getting in between you and your doctor in your decision making. And I think that some of the provisions that got snuck in, uh, might have violated that pledge.” The President should now get on television and apologize to each and every one of us who attended tea party protests or town hall meetings and tried to make their Senators and Congressmen aware of these facts. I wonder how many other lies the President will admit to in the coming months?
During the health care debate, conservatives also pointed out that ObamaCare would lesson the quality and quantity of care available in the United States; in much the same way that national healthcare has reduced the quality and quantity of care available in Canada and the UK. Proving our point, 60 year old Canadian Premier Danny Williams, Premier of Newfoundland and Labrador, came to the United States last week to undergo heart surgery. Premier Williams is a huge proponent of public health care, but when his life was on the line, did he trust the public Canadian system? Heck no! He came to the United States to immediately receive the best private care available. Do you think average Canadian citizens living under Williams’ authority in Newfoundland and Labrador have this freedom? Heck no! This is precisely why the majority of Americans are opposed to the healthcare legislation pending in Congress.
But in spite of the opposition of a strong majority of Americans, Democratic Party Speaker of the House of Representatives Nancy Pelosi has promised to nationalize our healthcare system before the end of the year. At a press conference on January 28th, she stated, “we’ll go through the gate. If the gate’s closed we’ll go over the fence. If the fence is too high, we’ll pole vault in. If that doesn’t work, we’ll parachute in. But we’re going to get healthcare reform passed…”
Over the past 12 months, it has become clear that the Democrats in control of Washington D.C. are not interested in representing the will of the American people. They are only interested in building a bigger, more expensive, more powerful federal government that enables them to force their will upon us and restrict our liberty and freedom. But the harder Barack Obama, Nancy Pelosi, Harry Reid and their cabal push for this liberal agenda (including increased debt, higher taxes, Keynesian stimulus, cap and trade, national healthcare, and “Card Check”); the more they fail as leaders. The more the liberal Democrats fail as leaders, the more they guarantee a massive conservative victory at the polls this coming November. It can’t come one moment too soon!
A Final Thought on the Weather
I must admit that when I heard the forecast last week that Washington, D.C. was about to struggle through another record snowfall, I laughed out loud. As I write, our capital is forecasted to receive another 1-2 feet of snow this week on top of the 2 feet it received last Friday and Saturday (that’s right, I am talking feet not inches). Somehow, I don’t remember all the thousands of scientists who made up the “global consensus” on climate change ever forecasting a cold winter and record snow this decade. Remember it is already 2010 and Al Gore, Tom Friedman and many others on the Left went around for years predicting that our climate would be in an absolute warming crisis by 2012. Apparently government paid, self-interested “scientists” are no better at their jobs than the public sector health care providers in Canada that a 60 year old Premier could not trust with his own life. During a winter when I am becoming increasingly angry with the brazen hypocrisy of the liberals in Washington, I am finding wonderful comfort in the reality of a cold, snowy winter. It looks like nature’s God is on our side.