Welcome to America’s rocky budget horrow show.
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Moreover, warned CBO, rising red ink “would reduce national saving, leading to higher interest rates, more borrowing from abroad, and less domestic investment — which in turn would lower the growth of incomes in the United States.” That is, because of excessive government outlays Americans will earn less even as they have to pay the government more. And there’s no logical stopping point. As expenditures rise, the cycle will accelerate.
Which leads to an even more frightening prospect: financial panic. Explained the agency: “Growing debt also would increase the probability of a sudden fiscal crisis, during which investors would lose confidence in the government’s ability to manage its budget and the government would thereby lose its ability to borrow at affordable rates.” In 2008 Uncle Sam wildly bailed out virtually everyone and everything — except taxpayers, of course. But if the federal government faced a budget crisis, who would bail it out? And if the American government tottered, what would happen to weaker European states, highly indebted Japan, and other nations?
In short, Americans are not just watching but living in a potential financial horror show. Unfortunately, President Barack Obama is one of the directors of the program. The CBO’s recent separate analysis of the president’s budget reported that he would nearly double the cumulative deficit between 2013 and 2022, taking the “baseline” estimate of $3.5 trillion to $6.4 trillion. The annual deficit would fall to “only” $488 billion in 2017, before steadily rising to $728 billion in 2022. Total federal, non-Social Security debt would rise to 76 percent of GDP.
Unfortunately, Republicans share the blame for the looming fiscal disaster. President George W. Bush and the GOP Congress were unashamed big spenders. Putative Republican presidential nominee Mitt Romney promises to be tough on federal spending, but nothing in his past behavior suggests that he takes this promise any more seriously than he has treated the many positions he has cheerfully tossed aside when he thought doing so was to his political advantage. Believing that Republicans, if victorious come November, will rein in Uncle Sam, is, like a second marriage, the triumph of hope over experience.
There is little time left to avoid Washington’s looming budget apocalypse. The American people must take control away from politicians, irrespective of the letter after their name. Asked Ronald Reagan in 1980: If not us, who? If not now, when? We must answer these questions today.
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?
H/T to National Review Online