Dependency and Votes

Thomas Sowell

Thomas Sowell

by Thomas Sowell –

Those who regard government “entitlement” programs as sacrosanct, and regard those who want to cut them back as calloused or cruel, picture a world very different from the world of reality.

To listen to some of the defenders of entitlement programs, which are at the heart of the present financial crisis, you might think that anything the government fails to provide is something that people will be deprived of.

In other words, if you cut spending on school lunches, children will go hungry. If you fail to subsidize housing, people will be homeless. If you fail to subsidize prescription drugs, old people will have to eat dog food in order to be able to afford their meds.

This is the vision promoted by many politicians and much of the media. But in the world of reality, it is not even true for most people who are living below the official poverty line. [Read more...]

America Slouching Towards Fiscal Armageddon

America in Distressby Chris Banescu -
America is in grave danger. Our government’s out-of-control spending and our politicians’ refusal to implement meaningful budget reforms are leading us towards a fiscal crisis that can undermine our very way of life. We are spending ourselves into oblivion. With each passing day, we are $5 billion in deficit spending closer to the edge of an abyss that can cripple our economy, destroy America’s wealth, and lead to catastrophic social consequences for all current and future generations. Yet our leaders in Washington refuse to face reality and continue to play political games while the country’s budget crisis deepens and the threat grows exponentially.

In February of this year the US federal budget deficit grew by a record $224 billion; the biggest one-month increase in history. Worse still, the 2011 US budget deficit is forecast to reach $1.5 Trillion. According to the non-partisan Congressional Budget Office (CBO) this annual deficit represents the largest budget gap in our country’s history, equivalent to approximately 10% of America’s total economic output. This follows the enormous $1.3 Trillion deficit racked up for 2010 and will be superseded by an equally disturbing $1.65 Trillion deficit forecast for 2012. [Read more...]

Time for War Against Democrats’ Fiscal Sabotage

David Limbaugh

David Limbaugh

by David Limbaugh -

It is amazing that the American people would continue to elect Democratic politicians to national office, considering Democrats’ cynical disregard for the federal budget crisis. They aren’t even slightly serious about becoming part of the solution.

Consider the Senate Democrats’ most recent proposal for budget cuts to avert a government shutdown. Senate Republicans, following the House plan, proposed $61 billion in cuts for the current year, while Senate Democrats proposed a paltry $6.5 billion. (The Congressional Budget Office says it’s actually only $4.7 billion.) Though Obama seems to be hiding in the bushes on this one, he is said to support the Democratic plan.

Did you hear that: $6.5/$4.7 billion? This is nothing. It’s an outrage. This from the clowns who say the Republican cuts, which themselves wouldn’t be enough, are “Draconian.” No, it’s their attitude that is Draconian — to the republic. [Read more...]

The Put-Off, Postpone and Procrastinate Generation

Victor Davis Hanson

Victor Davis Hanson

by Victor Davis Hanson -

The Obama administration figures that it has read the national mood well. This therapeutic generation of Americans loves to talk and worry about problems and then assumes that either someone else will solve them or they will go away on their own. And why not, since we have had periodic “energy crises” since 1974, have run budget deficits in most years since World War II, and have been warned about a looming Social Security meltdown for the last decade — and yet remain wealthy and affluent.

But now gasoline costs more than $4 a gallon in many places in California, and averages more than $3.50 nationwide. In response, the Obama administration is reportedly considering tapping into the nation’s Strategic Petroleum Reserve to increase supplies and drive down high prices brought on by a recovering world economy and unrest in the oil-rich Middle East.

Yet the reserve depot was not designed to alleviate periodic gas-price spikes, but to ensure our very survival during a global catastrophe that might result in a cutoff of most petroleum imports from overseas. [Read more...]

The Party of Big Government

Big Governmentby Vasko Kohlmayer -
Having apparently realized that this country is bankrupt, President Obama recently proposed cutting deficit spending by $1.1 trillion over the next ten years.

Some people were impressed. Some people complained it was too much. After all, $1.1 trillion looks like a big pile of money.

The president’s proposal, however, is only symbolic. It is only meant for show. During that ten year period the federal government will spend well over $40 trillion. What Obama is proposing is a drop in the bucket.

But this does not stop him from going in front of the camera and posing as a deficit hawk. The president should be ashamed of himself. He is a quack who is taking this country down the road to fiscal doom.

There is only one group of people we should fear even more than Obama. They are Republicans. Republicans are quacks too, but this is a bit more difficult to perceive. [Read more...]

Humility in a Time of Recession

9/1/2010 – Samuel Gregg –
Since 2008, there has been much discussion about the contribution of unethical behavior to our present economic circumstances. Whether it was borrowers’ lying on mortgage-applications or Fannie Mae and Freddie Mac’s politically-driven lending policies, there seems to be some consciousness that non-economic factors played a role in facilitating what we already call the Great Recession.

Unfortunately evidence is emerging that some people have learned nothing. A recent report, for example, commissioned by the Wall Street Journal illustrates that “losses from mortgage fraud—ranging from falsified credit reports to identity theft—rose 17% last year after declining 57% in the two years after its 2006 peak.” [Read more...]

How to Fix Health Care: Lasik Surgery For The Medical Debate


Make no mistake about it. Health care reform is coming. But what’s the best way to fix our health care system, which is an inefficient, complicated mess of private actors, third-party payers, public subsidies, and innumerable state and federal regulations? Should we place our faith in the government or in the free market? [Read more...]

Why Obama Bombed on Health Care

Wall Street Journal | by HOLMAN W. JENKINS, JR. | Sep. 29, 2009

The public wasn’t dumb enough to believe the public option would save money.

Someday this country will have a health-care debate that’s not abject in its idiocy. It will involve a term used by Congressional Budge Office chief Doug Elmendorf, who has become a notoriety for harping on the word “incentives.” The same word was used the other day by Warren Buffett, about what’s missing from the health-care plan on Capitol Hill. [Read more...]

The Tyranny of the Obvious

Acton Institute | Hunter Baker | May 27, 2009

Those who promoted the War on Poverty and other grand plans to end poverty, writes Hunter Baker, “had no inkling that these good-hearted strategies would lead to enduring cycles of poverty and family disintegration that threatened to consume entire generations. Wishing for good outcomes resulted in disaster.” [Read more...]

The Decline of California

The Wall Street Journal | February 17, 2009

If you thought Washington’s stimulus debate was depressing, take a look at the long-running budget spectacle in California. The Golden State’s deficit has reached $42 billion, Governor Arnold Schwarzenegger is threatening to furlough 20,000 state workers (go ahead, make our day), and as we went to press yesterday Democrats who control the legislature had blocked lawmakers from leaving until they finally get a deal. [Read more...]

The Fierce Urgency of Pork

Washington Post | Charles Krauthammer | Feb. 6, 2009

“A failure to act, and act now, will turn crisis into a catastrophe.” — President Obama, Feb. 4.

Catastrophe, mind you. So much for the president who in his inaugural address two weeks earlier declared “we have chosen hope over fear.” Until, that is, you need fear to pass a bill.

And so much for the promise to banish the money changers and influence peddlers from the temple. An ostentatious executive order banning lobbyists was immediately followed by the nomination of at least a dozen current or former lobbyists to high position. Followed by a Treasury secretary who allegedly couldn’t understand the payroll tax provisions in his 1040. Followed by Tom Daschle, who had to fall on his sword according to the new Washington rule that no Cabinet can have more than one tax delinquent. [Read more...]

The Fear of Doing Nothing

American Thinker | Jim H. Ainsworth | Jan. 16, 2009

A lot of our economic troubles could be solved if we could just keep our emotions in check. Seriously. It seems that fear, greed and the thirst for power have swept the country like an airborne virus. The fear of doing nothing rules the day — not logic, not study, not knowledge or analysis. Certainly not patience. Our leaders, whoever they are, are acting like third grade schoolchildren who have been told by their teacher that a snake is loose in the room. And by the way, wouldn’t you like to know who that teacher is? Who is in charge? [Read more...]

McCain Letter Demanded 2006 Action on Fannie and Freddie

Human Events | Oct. 10, 2008

Sen. John McCain’s 2006 demand for regulatory action on Fannie Mae and Freddie Mac could have prevented current financial crisis, as HUMAN EVENTS learned from the letter shown in full text below.

McCain’s letter — signed by nineteen other senators — said that it was “…vitally important that Congress take the necessary steps to ensure that [Fannie Mae and Freddie Mac]…operate in a safe and sound manner.[and]..More importantly, Congress must ensure that the American taxpayer is protected in the event that either…should fail.” [Read more...]

How to Ruin the U.S. Economy

Yahoo! Finance | Ben Stein | Oct. 6, 2008

1) Have a fiscal policy that creates immense deficits in good times and bad, burdening America’s posterity with staggering burdens of repaying the debt.

2) Eliminate regulation of Wall Street and/or fail to enforce the regulations that already exist, instead trusting Wall Street and other money managers and speculators to manage other people’s money with few or no regulations and little oversight.

3) Have an energy policy that disallows producing our own energy and instead requires that we buy energy from abroad, thus making our oil prices highly volatile and creating large balance of payments deficits, lowering the value of the dollar and thus making the problem get progressively worse.

4) Have Congress mandate that banks and other financial entities lend money to persons they know in advance to have poor credit ratings or none at all. [Read more...]

Ethical Solution to Mortgage Crisis: De-Bundle Loans and Identify Known Risks

Chris Banescu Blog | Chris Banescu | Sep. 30, 2008

I have just sent this appeal to my representatives in Washington. Feel free to copy and paste and send to your representatives.

Dear Representative,

Please do NOT support the $700 Billion Bailout Plan until the Banks and the Lending institutions indentify the Toxic Loans and DE-BUNDLE them.

It would take very little effort on their part to identify each loan based on a computer search of their existing loans:
1. Full Default = no payments in 3+ months (Toxic)
2. Partial Default = no payments in 1-3 months (Potential Toxic)
3. Good Standing = on-time payments [Read more...]