President Obama and his associates on the left follow the Keynesian theory of economics, the idea that when economies wane, government deficit spending will reignite the flame. To that end the Obama administration has spent trillions of dollars in 3 years, around 40 percent of which has been borrowed, and on which the country is now paying interest.
The national debt stood at $10 trillion when Barack Obama moved into the Oval Office just three short years ago. That nearly incomprehensible amount represented the unbridled deficit spending of generations of left-leaning presidents and congresses—Democratic and Republican.
Today the national debt stands at $15.7 trillion, more than a 50 percent increase in so short a time. If the congress complies with the President’s demands for increased spending, the national debt will exceed $17.5 trillion by next year.
What’s the problem, you ask?
When Americans turn off the alarm clock and hustle off to work, the first $1.2 billion they generate every day must be siphoned off of the economy just to pay the current interest on the national debt. That amount grows each day as additional money is borrowed to run the government, and as unpaid interest on the debt compounds.
The federal budget is up to $4 trillion a year, with multiple stimulus packages filled with crony payoffs and pork barrel spending wasting additional trillions, without any economic return to the American people. The economy is worsening, with real unemployment and underemployment over 15 percent.
Government leaders should have put the country on a fast-track to pay off the national debt 20 years ago . . . and 10 years ago . . . and 4 years ago. Those on the left boisterously proclaim that the only answer is to raise taxes. We challenge the left to demonstrate to the public when raising taxes has ever improved the economy. In fact, it has never happened. It is when taxes are slashed that money is freed up and businesses invest in new jobs, putting people to work and heating up the economy. President Kennedy proved this, as did Ronald Reagan.
Time after time Keynesian economics has failed. So why do our universities still tout it as the model for our own economy? Why are our government leaders drawing all available dollars, current and future, into the abyss of federal spending? How many jobs were created with the shovel ready projects promised by President Obama as he highjacked nearly $900 billion in the first stimulus package?
Debt creates poverty. Ever family knows this. Those who frequent the check cashing-payday loans establishments have learned the hard way that it is a recipe for financial disaster. So when will our government leaders learn the lesson? We recall well as Jimmy Carter addressed the nation and scratched his head in confusion as he explained that he had implemented all of the university approved, liberal orthodox policies, yet the country appeared to be languishing in a “malaise.” These are people that don’t seem to learn from past mistakes. Debt equals poverty. Perhaps this is why Americans are becoming poorer with every passing day.