American Elephants

Obama Wants More Money for His Big Government Ideology! by The Elephant's Child

President Obama said today, in his daily press conference designed to show everyone how much attention he is paying to the important debt battle, now that after 2½ years he has decided to be interested in the country’s fiscal straits.”We’re in the 11th hour and we don’t have a lot of time left.” he said.

So here’s where we stand.  We have a Democratic President and administration that is prepared to sign a tough package that includes both spending cuts, modifications to Social Security, Medicaid and Medicare that would strengthen those systems and allow them to move forward, and would include a revenue component.  We now have a bipartisan group of senators who agree with that balanced approach.  And we’ve got the American people who agree with that balanced approach.

Well, no they don’t.  And 80 percent of the people aren’t anxious to have their taxes raised either, contrary to what the president claims. But the mainstream media will obediently pummel the Republicans for pushing spending cuts and refusing to support tax increases in connection with raising the debt limit.  Republicans had a mandate from the voters in November to do just that.

In negotiations on the debt limit, Obama has said that he will not support any cut in ObamaCare, even though large majorities favor its repeal.  No messing with entitlements, but he’d be glad to cut Medicare some more.  Gotta get rid of those troublesome old folks. And the $53 billion he wants to spend on high-speed rail projects is absolutely off the table. The states into which Obama wants to put his high-speed rail for the most part, don’t want anything to do with it. To call high-speed rail a boondoggle is a compliment.  It’s way worse than that. Wendell Cox explains:

The Federal government is again offering money it does not have to entice a state (Iowa) to spend money that it does not have on something it does not need. The state of Iowa is being asked to provide funds to match federal funding for a so-called “high-speed rail” line from Chicago to Iowa City.  The new rail line would simply duplicate service that is already available. Luxury intercity bus service is provided between Iowa City and Chicago twice daily. The luxury buses are equipped with plugs for laptops and free wireless high-speed internet service.  The buses make the trip faster than the so-called high speed rail line, at 3:50 hours. The trains would take more than an hour longer (5:00 hours. …Only in America does anyone call a train that averages 45 miles per hour “high speed rail.”

The funding is the first step in a faux-high-speed rail plan that envisions new intercity trains  branching out across the Midwest. A similar line from St. Louis to Chicago has increased in cost nearly 10 times from under $400 million to $4 billion. European researchers have found that the average rail project costs 45 percent more than projected and 80 percent cost overruns were not unusual.  Cost overruns were found in 9 out of 10 projects, and ridership falls far short of projections. Three Republican governors have turned down government money and high-speed rail, so far, with more to follow.

Some travelers return from China full of praise for their new high-speed trains. The Chinese won’t ride the bullet train, it’s too expensive. The Beijing-Tianjin line, build at a cost of $46 million per mile is losing more than $100 million per year.

Columnist James Pethokoukis explains Obama’s tax obsession.  “He needs Big Taxes to fund Big Government.” To fund ObamaCare (which is going to require constantly increasing taxes) to fund new social spending and green “investment” we need dramatically higher taxes.

But even Obama’s economists have told him that you don’t raise taxes in a recession. But three liberal think-tanks are calling for unprecedented tax hikes on millionaires, higher taxes on alcohol and tobacco, securities transaction taxes, higher taxes on capital gains, higher taxes on corporations higher death taxes, carbon taxes and gasoline taxes. These, they are really sure, would not hurt economic growth.  They think this is a “sustainable” fiscal path through 2035.  Their plans, collectively, call for Washington to collect an average of 23.6 percent of GDP— compared to the average post-World War II average of 18.5 percent.  The very highest level of tax revenue that the U.S. has ever collected is 20.9 percent in 1944.

New York Times liberal economics columnist  David Leonhardt says:

For taxes to remain where they are, Washington would need to end Medicare as we know it, end Social Security as we know it, severely shrink the military —or do some combination of the above.

How interesting.  Paul Ryan has just proposed a plan that saves Medicare and Social Security, without shrinking the military and puts the economy back on a healthy path— by cutting excessive spending.

Liberals always have good intentions. They want to give people stuff and make people love them. And because they are brilliant caring people they want to be in charge. But they never, never look at the evidence or the history of experiments with good intentions.  And if they chance to see that  it didn’t work, they simply tell themselves that this time it will be different.  And it never is.

The Obama Fiscal Record —Exposed! by The Elephant's Child

The political rhetoric is escalating.  Everyone has been warning for some time of the consequences of a debt default. President Obama, who has said that the public is not paying attention, is associating default with all spending reductions — which he describes as not paying the bills.

Whoa!  This is trying to dazzle with footwork. When you start calling taxes “revenue,” and spending “investments,” then you claim that reducing spending is “failing to pay the bills”— you are deliberately and despicably are trying to misinform the public to garner favor and shift the blame.  The President, unwilling to give up any of his spending, is now calling House Republicans “irresponsible.”

January 20. 2009: President Obama sworn into office.
— In the Inaugural Address “Those of us who manage the public account, to spend wisely, reform bad habits, and do our business in the light of day, because of the vital trust between a people and their government.”
Debt held by public = $6.31 trillion

February 17, 2009: President signs Spending Stimulus into Law.
— Stimulus adds $821 billion  in new spending (CBO)
— The White House promises this infusion of spending and
borrowing would keep unemployment rate below 8%.
That didn’t work.
Debt held by public = $6.48 trillion

February 26, 2009: President issues FY 2010 Budget.
— The President’s budget adds $2.7 trillion in new debt in FY 2010
and adds $1.4 trillion in new taxes.
Debt held by public = $6.58 trillion

March 11, 2009: President signs FY Omnibus Appropriations Act.
— Appropriations Act includes 8,906 earmarks at cost of $11 billion.
— Act adds $19 billion in new spending, an 8.6% spending increase.
Debt held by public = $6.66 trillion

April 29, 2009: Congressional Democrats pass FY 2010 Budget.
— Congressional budget calls for $2 billion increase in 2010 and
another 8.9% increase in non-defense discretionary spending.
— This is last budget from Congressional Democrats
Debt held by public = $6.85 trillion

February 2, 2010: President issues FY 2011 Budget.
— President’s budget more than doubles the debt. FY2011 deficit is
a new record of $1.6 trillion,  spending to new record of $3.8 trillion
and raises taxes by more than $2 trillion by administration estimates.
Debt held by public = $7.85 trillion

March 23, 2010: President signs ObamaCare into Law.
— ObamaCare Law adds $1.4 trillion in new spending over next
decade, and over $2.5 trillion once law is implemented.
Debt held by public = $8.18 trillion

July 21, 2010: President signs Financial Regulatory Overhaul int Law
— Massive new law adds $10.2 billion new spending.
Debt held by public = $8.69 trillion

February 14, 2011: President issues FY 2012 Budget.
— President’s budget calls for doubling the debt in 5 years, tripling
the debt in 10 years. Spends 47 trillion over next decade + $1 trillion
in new taxes. Fails to address drivers of debt.
Debt held by public = $9.45 trillion

April 15, 2011: House passes FY 2012 Budget Resolution.
— House passed budget cuts $6.2 trillion in government spending
over nest decade, saves Medicare, strengthens social safety net,
spurs economic growth and job creation.
— Senate fails to meet legal requirement to pass a budget by
April 15.
Debt held by public = $9.68 trillion

May 25, 2011: Senate unanimously rejects President’s FY 2012 Budget
Vote is 97-0.
— S&P Issues Credit Warning on U.. Debt, April 18. Medicare and
Social Security Trustees issue warning of Looming Insolvency.
— Still no budget from Senate Democrats.
Debt held by public = $9.72 trillion

July 8, 2011: Unemployment hits 9.2%, 800 days since
Senate Democrats passed a budget.
Debt held by public = $9.75 trillion

July 15, 2011; President holds Press Conference: “We’re running
out of time” to deal with debt.
— President tells press “I’ve got reams of paper and printouts and
spreadsheets on my desk, as so we know how we can create a
package that solves the deficits and debt or a significant period
of time, but in order to do it we got to get started now.”
— American people have seen no paper, no printouts and no
spreadsheets, no plan to reduce deficit.
Debt held by public = $9,75 trillion

This brief history of  President Obama’s fiscal record comes from the United States House of Representatives Budget Committee.  $975 trillion – $6.31 trillion = $3.44 trillion, Obama’s record.  He’s campaigning while the country declines.

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