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August 30, 2011
Shovel-Ready Jobs We Don’t Need by Dr. Alan Bates, MD.
Shovel-Ready Jobs We Don’t Need
by Dr. Alan Bates, MD.
Did you ever wish you could fire all the members of Congress and just start over? Well, Tim Cox, founder of the non-partisan organization “Get Out of Our House” wants to do just that. GOOOH (website www.goooh.com) continues to build a coalition of patriots from all fifty states from which the most qualified will be placed on the 2012 ballot to compete against all 435 members of the U.S. House of Representatives.
Many of the current House and their brethren in the Senate have systematically destroyed our once great and prosperous nation which took more than 200 years to create through the hard work and sacrifice of free and industrious people. America now finds itself trapped in a self-destructive scheme engineered by radical ideologues for whom financial responsibility means nothing---and that is why our economy continues to crumble in sharp contrast to prior recessions which were soon followed by rapid recoveries driven by the private sector without government interference.
Obama and the socialist Democrat-dominated Senate have for the first time in our history submitted no annual spending budget for more than two years---a convenient way to avoid accountability in spending taxpayer dollars. Fedzilla has placed all of us on an intolerant and unsustainable course to financial insolvency and its accompanying systemic failure. Not counting ‘mandatory’ future obligations of well over 100 trillion dollars, which include social security, Medicare and Medicaid, the government has a current outstanding debt of 14.6 TRILLION dollars most of which has been created by the current anti-American president and his accomplices, the rest at the hands of the socialist Democrats who ran Congress under the prior president.
The largest recent chunks were the initial bank rescue package at a cost of about 800 billion dollars, followed by a misdirected one trillion dollar ‘stimulus’, after which will be another 2.4 trillion dollars at Obama’s request---Congress just gave that to him during the debt ceiling negotiations which accomplished nothing of substance to address Fedzilla’s spending spree.
Don’t expect significant properly targeted spending cuts from the highly partisan ‘super committee’ of twelve which consists of only four members with any background in economics or business (three on the GOP side). The Democrats have appointed several well-known special interest big spenders.
Here are some real numbers to chew on. If the government cuts all of its discretionary spending (currently about 14 percent of the budget) AND allows the ‘Bush tax cuts’ to expire (which only nets an estimated 700 billion dollars over ten years), there is still no way to balance the current budget deficit and pay future obligations. In 1970, the Federal government spent 900 billion dollars, of which 20 percent covered entitlements such as Social Security, Medicare and Medicaid, 42 percent for defense, and only 7 percent to cover interest on government debt. Contrast that with last year (2010) when Federal spending was 3.5 trillion dollars ( 4X that of 1970), of which 40 percent covered entitlements, 20 percent for defense, and 6 percent to pay the interest on the debt (kept artificially low by the Federal Reserve which up until recently was buying as much as 90 percent of U.S. Treasury bonds as foreign buyers receded).
If one extrapolates to the year 2040, our annual budget would grow to over 12 trillion dollars, half of which would be consumed by entitlements, THIRTY percent for interest payments on the debt---leaving only 11 percent for defense and reducing discretionary spending to only 7 percent of the entire budget.* America cannot generate enough revenue to fund its obligations and it is unlikely foreigners will loan us enough money to do so. Therefore, America ultimately faces its day of judgment.
There are but two options: government default or inflating our way out of our obligations. Neither option bodes well for America’s future. The point of no return just passed us by. Truly drastic changes must occur at this point and will require a large and painful adjustment in expectations by Americans. By necessity, government must consume an increasing fraction of our GDP to meet existing obligations which decreases what remains for consumption and capital investment by citizens and businesses. In a word, Americans will be poorer.
We are long past the time when honest and educated people of integrity were elected to public office as an mere interlude to their private occupations. Politics has become a profession and many of those elected to office today are driven by power and greed. Worse, those who elect them are either wealthy parasites (off government favors) or dumbed down fools who merely want handouts from the government (paid for by the ever-diminishing number who work and pay taxes). Those in Congress today are paid about four times the amount earned by the average American and that does not include their self-endowed lifelong benefits all paid for by taxpayers.
Don’t forget they have voted themselves a pay raise every year no matter the state of the national economy, which sharply contrasts with the years following the Great Depression when members of Congress took pay cuts of 15 percent.
On top of driving America over a cliff, our anti-American pro-Muslim anti-Judeo-Christian racist president has put us on the road to Marxism. He has appointed three Muslims to his cabinet who are tied to the Muslim Brotherhood, well-known for its goal to establish Islamic dominance worldwide---and a number of self-avowed Communists and socialists to his list of Czars and agencies who have been given free rein to spend taxpayer money to accomplish their ideological objectives. For the first time in history we have a president who ignores the rule of law and rules by fiat, protected by socialists who have taken over the Democrat Party.
Dictator Obama has confiscated private assets (at the expense of bond- holders, set into place his unaffordable plan to control our healthcare without Congress so much as reading the details of his plan, prevented America from securing its energy independence, smothered small businesses with more regulations, and as recently as last week instituted ‘backdoor amnesty’ after his proposal (the Dream Act) failed to pass Congress.
In 2008, America for the first time in history elected a narcissistic ideologue with no business or military experience to the highest office in the Land---one who has systematically destroyed our social, religious and economic foundations in order to satisfy his (and his wife’s) deep hatred for the attributes which made America a prosperous and respected nation: the values of liberty, privacy, self-sufficiency and our willingness to fight tyrannical threats to our nation and our allies.
The next elections will be the most important in American history if America is to halt the transformation from a democratic republic to a Marxist regime which destroys the middle class and reduces the overall wealth and productivity of our nation.
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Wild Thing's comment......
Good article by the Dr. he is so right about Obama and his goal of a Republic to a Marxist regime.
....Thank you Mark for sending this to me.
Mark
3rd Mar.Div. 1st Battalion 9th Marine Regiment
1/9 Marines aka The Walking Dead
VN 66-67
Posted by Wild Thing at August 30, 2011 02:48 AM
Comments
What a great article. A brief lesson in basic economics. Dr Bates shows how wild deficit spending and Ponzi social schemes as practiced over the last half century have driven us to bankruptcy.
I also like how Dr Bates labels our Marxist muslim leader and also points out how our Republican House caved in on the recent debt ceiling vote.
Posted by: TomR, armed in Texas at August 30, 2011 10:31 AM
Tom, great summary of the article thank you so much.
Posted by: Wild Thing at August 30, 2011 11:48 PM
When you dig behind the numbers it is surprising just how quickly the US could get out of danger if the Congress would just stop digging us deeper.
Too many congressmen are unwilling to stop digging because they might have to give up the shovel if they do. We have seen this at townhalls across this country in the last two years.
Posted by: Avitar at August 31, 2011 01:16 AM
