From The Nation:
Obama also spoke on how it will be crucial for the federal government to continue helping state and local governments facing deficits that are forcing them to slash jobs and services, and to make “investments in infrastructure, in education, in clean energy.”
“Now’s the time actually to make sure that we’re prioritizing properly and pushing even harder on that front,” said Obama.
It’s in vogue in DC these days to treat the deficit as if it is a sign of the End of Days. It seems the President was, in fact, significantly more rational in taking on job creation than the media coverage would have you believe.
One has to ask: spend what money? Where is there actual money to spend? Who can we really borrow it from? I don’t think our liberals are really grasping the fact of national bankruptcy. Even if one wants to believe that you can borrow via government and create net wealth, the fact remains that we are so far in the hole that no conceivable level of government-created growth will exceed the level of total debt repayment. If we were sitting with a balanced budget right now and/or little or no government debt, there might be something to be said for deficit spending – but that isn’t the case.
For just a moment, lets all realize where we are: we’re broke. It could very well be that our national wealth is less than it was 30 years ago, when you think in terms of what we make, mine and grow. But even if you wish to believe that our net wealth is greater than it was, say, 30 years ago you can’t escape the fact that we’re massively more in debt than before. Some calculations of total US debt reach $70 trillion dollars – if you count the unfunded mandates of Medicare, Medicaid and Social Security. This is not the time to spend more – it is time to create wealth and pay down debt.
Now, how do we do this? Lots of ways – but most importantly, not by increasing government debt. The best way would be to remove the obstacles to the creation of new wealth in the US – the wall of taxes, regulation and NIMBYism which essentially forbids us to use vast amounts of our land and materials for the creation of wealth. Remove these obstacles, and the seed money necessary to create the wealth will come pouring in – from both American and foreign sources. Once we start creating wealth, we can start paying off debt – and it is vitally important that we pay off our debt and never, ever allow ourselves to get in to this state again.
But our liberals don’t even want to listen to this – because they simply don’t understand what wealth is. When Obama said he wanted to spread wealth around he was thinking like a typical liberal – that the fake money we have in our wallets is wealth. Its not – its just money and its worthless as it isn’t backed by anything. You can spread trillions of it around and you won’t do any good – but allow someone to get to work making a new farm, new factory or new mine, and you’ll have created some new wealth.
We’re in for a very bad time, because Obama and his liberals really do seem to be bent on ever more spending. Each new dollar borrowed or printed just puts us further in the hole and will make it harder to get out. While the free flow of fiat dollars might pump up the economy and give some positive GDP numbers, it is and will remain nothing but smoke and mirrors. And it will come crashing down – I’m still expecting this around March, but it could go on for even a year or two from now. But the crash will come – and it will be catastrophic. Hopefully, we’ll have then learned our lesson.
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