Spend-A-Thon
February 1st, 2010 by 
reality
President Obama speaks about the need to reduce the deficit, and then promptly releases a budget proposal showing a deficit of $1.8 trillion dollars, not counting the off-budget emergencies like a few wars. The Federal government is proposing to spend about $2 for every $1 collected in taxes. This money will, of course, go down the usual politically favored ratholes and be wasted rather than invested for the future. So the country ends up with huge debts and a shrinking industrial base. Thanks, Barry.
Oh, and by the way, there are large tax increases in the budget for higher income earners. Probably the first of many to come as politicians, bureaucrats and government employee unions tighten their grips around the throats of the rest of the citizenry. They just hope the problem of the death of the golden goose will be left to someone else in the future to solve. Good luck with that hope, I say.
Posted in Debt, Economics, Government, Rogues and Rascals, Saving & Investment, Strategy & Scenarios, The Economy, The Fisc | 
2 Comments »
February 1st, 2010 at 3:21 pm
There will be no growth, either in economic activity or tax revenues, if tax rates are increased. This budget is entirely self-defeating, a consistent characteristic of virtually all of this administration’s policies. They are either economically ignorant, or Leninist idealogues, or both. The free world is in danger of an economic meltdown.
Time to get practical: Cut government salaries across the board 3% per year for the next three years. Cut government employment (excepting uniformed military but including non-uniformed DoD) by 5% immediately, 2% for each of next 2 years. Immediately enact a flat tax of 20% with only earned income credit for those below a certain income level. Enact tort reform, and expand health insurance choices across state boundaries. Mandate that pharma companies charge the same price for medicines in all markets globally. Cut government (at all levels) employee retirement benefits to match private industry. Re-instate Glass-Steagall firewalls in the banking system. Extend the so-called Bush tax cuts. This is the agenda and budget approach that will fix the problem and is what the American people want. Simple, growth oriented, honest. We need to do it now.
February 1st, 2010 at 3:39 pm
Right direction, but not nearly radical enough at this late stage