Tuesday, January 26, 2010

Obama and the myth of a balanced budget.

Suddenly President Obama is concerned about a balanced budget and a need to rein in spending.Just what happened to him the great intellect with a sense of history and his sense of connection with FDR vs Hoover? With unemployment at technically 10% and much higher actually, this is a crazy plan of action. First where are you going to cut? What programs are going to be removed? If people don't have jobs, they don't spend and consumer spending is what fuels the economy. The private sector is creating enough jobs at this point and local governments are being starved as well. Government spending is the only thing that fuels the economy. There is no inflation at this point.Virtually no lending is being done and banks still haven't learned their lessons.
The deficit was caused by conducting a war without a tax increase and due to the Bush tax cuts that benefit ted a small part of the population. These are issues repeated here ad infinitum. Revenues were depleted intentionally (Remember Clinton left office with a balanced budget) I just wish the President would stop defending what he has been forced to do to clean up the mess he inherited. I wish the President and the Democratic Party would just stop defending. Defending from my therapist's/therapy days is buying into someone else's idea that you did something that needs defending. (I would like to see Obama act more like my favorite character of Agent Gibbs on NCIS-vs Oliver in Love Story)
Everyone complains about the size of government and that programs need to be cut. Yet when you ask someone,a Republican senator and especially the Tea Party people just what would they cut, you don't get an answer. Farm subsidies, their social security, their medicare, education grants,school lunch programs, food stamps, FEMA, disaster relief,FDA protection, veterans benefits,infrastructure repairs,military bases in their communities. (Ask the people in Minnesota about the dangers of bridge disrepair) The cutting back on government spending is what made the great depression worse. The economy needs to be fueled by programs such as public works and rebuilding energy efficient rails and green jobs that would be the greatest investment "in our children's future"-Ever notice that everyone is concerned about "our children's future" in the short run, but really screws it up long term? This is the worst time to be cutting back on spending. The talk of "earmarks" is also a joke' Earmarks make up 1% of a $3trillion plus budget. This is basically nothing and each request eg help for mass transit is considered essential by the group who had lobbied for it.
Infrastructure repair puts people to work and puts money back into the system. Every dollar of public works money is multiplied. People out of work don't pay taxes, and cut their spending.
The idea of being concerned about balancing the budget is theoretically a nice idea in different economic times-such as during the Clinton years. The reality of today's times makes the concerns about a balanced budget is totally insane. It also makes me wonder about the political philosophy of the man elected with such hope. There are times when I am just not sure what he stands for. The only thing that matters now is jobs.

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