Filed under: Capitalism, Democrat Corruption, Domestic Policy, Economy, Liberalism, Progressivism, Regulation, Taxes | Tags: Keynesian Fairy Tales, Last of the Big Time Spenders, What Austerity?
President Obama says his new budget will finally end the dreary “era of austerity.”
What? Dreary era of austerity? On what planet? The federal government will spend $561 billion more this year than it did in 2008. That’s a 19% increase at a time when inflation rose just 9%. Obama has set the country on a permanently higher spending path. Federal outlays are on track to reach 22.4% of the gross domestic Product (GDP) by 2024, according to the Congressional Budget Office.
Deficits have dropped slightly in the past two years, and expected to fall again this year and next, but that’s due to revenues bouncing back from recessionary lows as much as it is to spending restraint imposed by the GOP. By 2022, the deficit will top $1 trillion again and will go on up from there, as will the national debt.
The areas that Obama singles out for big spending hikes are hardly starved for funds. He wants more money for early childhood education programs, but Head Start’s budget has soared by 25% since Obama took office to $8.6 billion. The stimulus pumped another $2 billion into the program in 2009. Study after study has shown that there is no lasting benefit from the Head Start program. The thinking seems to be that rich people send their kids to fancy early childhood programs, so if you give the same benefit to poor or minority children, they will do as well as the rich kids. It seems to be simply expensive babysitting.
Obama also wants to spend big on college tuition aid. Federal aid has already climbed 32% on his watch according to the College Board. According to Forbes magazine, student loan debt now tops $1.2 Trillion! Kids are emerging from college, many not having completed a degree, with enormous debt — and cannot find a job.
Since the “age of austerity” is over (?) Obama wants more federal job training money, for programs that have more than tripled, and about training that is questionable in producing employment. And he wants more money for transportation — for California’s train to nowhere? He wants to order business to boost the minimum wage, on their own dime. More lost jobs.
Obama seems to think that the people who have lost jobs are unqualified for new jobs, and unless they are retrained for something different, are unemployable. He does not understand the burden that the federal government has imposed on business with ObamaCare.
The burden of excessive regulation, high taxes, and add plain old fear of what the federal government might do. The IRS, the EPA, the FCC, the EEOC, the DOL, and all the other myriad agencies and bureaus have gone after business to emphasize federal control. Business observes what has happened to other businesses, and hunkers down to try to avoid being noticed. More jobs are to come from a newly educated workforce, not from making it easier for business to grow, expand, and hire. We still have the highest corporate tax in the world.
Well, maybe the people who are mourning the death of President Roosevelt today will be relieved that we are ending the” dreary age of austerity.” Some of the folks still believe. If this is austerity, imagine what profligacy might be.