American Elephants


Paul Ryan Takes on Neo-Keynesian Spending! by The Elephant's Child

Representative Paul Ryan (R-WI) is the ranking member of the House Budget Committee.  He has been terrific on all matters to do with finance, budget and economics, and with a White House on a uncontrolled spending spree, it’s very worthwhile to listen to someone who actually understands such things.

On the lessons from Europe:

We are doubling down on this neo-Keynesian borrow and spend spree. It’s not working. We’ve lost 3.6 million jobs since the last stimulus was passed and they want to do more of the same. Bailing out state governments is the next roll of the dice. We are copying European economic policies of the past and that is going to give us a European kind of debt crisis in the future if we don’t change our policies. Yet the President is doubling down, giving us a big debt hangover.

On whether there will be the votes in Congress for the President’s demands for more spending:

The President got those same centrist Democrats to vote for a budget that doubles our debt in five years and triples our debt in ten years. He got those same centrist Democrats to vote for $1.8 trillion dollars in new spending and $670 billion in new taxes in this session of Congress. He has always gotten, along with Speaker Pelosi, the votes needed to engage in their continued spending spree.

On Washington’s failed economic doctrine:

What we have right now is a neo-Keynesian model being pushed, which means spend, spend, spend — and they still have no problem with all of these tax increases. This economic doctrine conveniently fits a political ideology. This political agenda is built upon building government programs, building up spending — and they use this economic doctrine to satisfy their political pent up demand. The so-called “stimulus” was not about jobs as much as it was spending money on all these programs that they have wanted to spend on for a long time. Now that they have Congress and the White House, the spending spigot is wide open.

On better solutions from House Republicans:

In Congress, Eric Cantor, the House Republican Whip, has formed an economic growth working group, focused on jobs and economic recovery. I put out an alternative budget last year that cut 4.8 trillion out of the spending line and actually got us on track to pay off our debt. This year, Democrats are not even doing a budget. House Republicans continue to put out better alternatives — aimed to keep taxes low, get a grip on spending and entitlements, and prevent us from becoming a stagnant welfare state, which is clearly unsustainable as we’re seeing in Europe.

On having a better grasp than most in Congress on economic issues:

It’s not a very high bar to clear.



Stop Spending! Just Stop! It’s Not Working and It’s Not Helping. by The Elephant's Child

President “Transparency Is the Touchstone of my Administration” Obama has noticed that while the official calendar calls for a revised budget estimate to be issued in July, um, we’ll just put it off till at least mid-August.  President Obama wants major health care reform and, if possible, a global warming bill from Congress before they recess in August.  And we don’t want any inconvenient budget overruns mentioned just now.

As details of the cost of these policies begins to emerge (reading thousand-page bills takes time) Americans are beginning to get glimpses of the trillions of dollars in spending that will do nothing whatsoever to improve health care or lessen the amount of CO2 in the air.

This year alone, the deficit will be upwards of $1.8 trillion, and earlier deficit estimates total up the red ink through 2019 at $9.3 trillion.

Neil Barofsky, the special inspector general for the Troubled Asset Relief Program (TARP) says that what began as a “modest” $700 billion program to buy up bad mortgages has morphed into 12 programs with $3 trillion in government commitments.

According to Barofsky’s testimony, total efforts to “stabilize and support the financial system” since 2007 could eventually “reach up to $23.7 trillion.”

The total take by government at all levels will be well over 50 percent of GDP, or the destruction of the American economy.  Investors Business Daily puts it well:

Good governance begins with honesty. Unfortunately, the Democrats’ plans to expand the scope and reach of government to nearly every part of Americans’ lives have been marked by fiscal deception and budget chicanery. The American people deserve better.

It has been exactly six months since Barack Obama was inaugurated.  Is the honeymoon over?




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