The most important problem in America today is the threat to liberty. President Obama, a socialist, is (as he has admitted) determined to change America. He has succeeded to an uncomfortable degree. Energy, automotive, health care, banking, housing, and student loan businesses, for example, have fallen directly or indirectly under government control during his administration. And his appetites for more of the same are alive and well.
While all of this was going on, political rhetoric has fastened on jobs, and divisive issues like abortion, birth control, contraceptive pills, and immigration. They are important, but are also insignificant when the over-arching issue remains – our freedom and the freedom of our economic system to operate without the micro-management of government. Rand Paul reminded us of this recently during his filibuster speech on the Senate floor.
Obama will continue to divert our attention to non-critical and divisive issues as he attempts to keep our minds away from his deeper purpose – to socialize the nation. He is not interested in a deal -- he is primarily interested in winning the 2014 congressional election, which could return to him the veto-proof power that he had during his first two years. His method for doing this will be the same as ever – avoid confronting the tough issues and demonize Republicans, especially those who show leadership ability.
The willingness and ability of the U.S. to expand debt, finances Obama’s projects. To stop him from borrowing for non-essential spending must end.
Is Government domestic spending the key problem?
Yes! Climbing debt began after President Dwight Eisenhower left office. It has continued ever since. Key comparisons between Ike’s second term and Obama’s first term follow:
1) Obama’s revenue: 27.4 times larger than Ike’s.
2) Obama’s defense spending: 15.1 times larger.
3) Obama’s interest expense: 34.7 times larger.
4) Obama’s cost of running the government: 34.0 times larger.
5) Obama’s cost of the Welfare State (all social programs): 102.9 times larger than Ike’s.
A federal deficit exists when federal spending is greater than federal revenue. And this formula applies as well to any department of government – those that expand faster than the revenue base contribute to the overall deficit. Now (please) party loyalty aside, and based upon the above facts provided by the Office of Management and Budget, is there any doubt about which line items were the fundamental cause of the enormous increase in debt? Of course not; it was every cost center except defense, especially the unfunded costs of the Welfare State, which increased about four times faster than revenue. Faster still if you include interest on debt.[i]
Tracing responsibility for the growth in debt is more complicated than the above chart suggests, since defense and interest expenses have constitutional protection – they get first bite of the revenue apple. But this information is sufficient to direct the blindest partisan to the correct conclusion -- unfunded social spending, the interest cost that goes with it, plus a bloated bureaucracy are destroying the fiscal integrity of the U.S.
Is the identification of the cause of high debt of current importance to problem-solvers? If not, put that issue aside, solve the problem, then go back to identify and deal with those who caused the problem in the first place. In this case, however, the answer to that question is: Yes. Why? Because President Obama, in the tradition of Woodrow Wilson, FDR and Lyndon Johnson, believes in the policies that developed the debt – he is more socialistic and less American in his world view than any president in history. Given the power, Obama will destroy the America of the Founders.
Obama must be stopped. To do so, borrowing must end. This must be the focus of the conservatives and of the Republican Party. Higher taxes are not the answer – they stifle growth, the greatest revenue producer. Lower spending, restructuring the entire Welfare State, and more tax income from growth in GDP is the answer.
Republicans must mount the hustings during the next two years with their best and most personable speakers; they must educate Americans to the threat to the Constitution and to their rights that Obama and the progressive movement represent.
In Washington, Republicans must play defensive politics, saying no to tax increases and blocking new spending wherever possible. Finally, by 2014 they must find candidates who can protect the Republican position in the House and gain ground in the Senate, all of this in preparation for a victorious sweep in the elections of 2016 featuring the largest Republican turnout in history.
[i] Interest rates are, and have been for some time, at an all-time low, kept that way by the Federal Reserve, which is keeping the nation afloat. If President Obama had to deal with interest rates that prevailed in the ‘80s (over 8 percent), the nation would be out-of-business today.