Debt

Americans Deserve Neither Liberty Nor Security

I have reached the conclusion that Americans have enjoyed so much freedom and prosperity for so many years that they have come to take it for granted, and not only fail to see such circumstances as unique in the history of mankind, but as commonplace. And because they assume such has always been the norm, they fail to realize that such prosperity and freedom must be nurtured, cultivated, and defended.

How else can you explain the re-election of Barack Obama, who added more debt in his first three years than the first forty-one presidents combined, and more debt in four years than George W. Bush (not exactly a fiscal conservative) accumulated in eight years? How else to explain the seeming indifference to stratospheric debt levels that keep rising by more than $4 billion per day? We seem to think that America, because it has been the richest and most powerful nation in our lifetimes, will always be such.

Likewise, while the world around us seems in constant turmoil, until the attacks of 9/11 (2001, not the Benghazi attacks that we still have no answers for), Americans felt safe and secure on our homeland, buffered from the violence in Europe, Asia, and the rest of the world that fills our nightly news. But on that day we had our nose bloodied, and we felt vulnerable. Yet for the next eight years under Bush, we had no more attacks on American soil, and we once again slipped back in complacency.

Now, violent attacks are the steady diet of our news media. The Boston Marathon bombing. The ricin letters. Sandy Hook. Aurora. Virginia Tech. Columbine. The Underwear Bomber. The Shoe Bomber. The Times Square Bomber. The Giffords shooting. Suddenly we seem vulnerable again, and in that vulnerability we seek safety and security.

Stop Going to College

College

As fall approaches, hundreds of thousands of high school students are being asked that nagging question: “What college are you going to?” These students would be wise to follow the advice of Peter Thiel, a billionaire Silicon Valley investor. For most of us, college is an expensive waste of time.

Not only is entrepreneurship a nearly impossible skill to truly teach at college since true entrepreneurship boils down to risk-taking (read: outside the box thinking) and self-motivation (read: not a classroom environment) — but enormous amounts of student debt severely limit the options of graduates in the marketplace by forcing them to take jobs that cover loan costs and provide for basic living costs.

This may be the ultimate folly of college education in my eyes. How many bright, young people are stuck in the rat race of professional jobs, or worse government, who are simply unable to follow their passions, be entrepreneurial, or develop something socially useful because they took on $100,000 in student loans when they were 18 and they just are not able to take the risk due to that looming $600/mo tuition payment.

This is why the Thiel Foundation is offering $100,000 scholarships to budding entrepreneurs to drop out of college for two years and develop their ideas. At least 20 students are awarded the scholarship each year, with some impressive results.

40% of full-time students fail to get a degree in six years, and with roughly one of three college graduates in a job the Labor Department says requires less than a bachelor’s degree, it is clear that our emphasis on the need to go to college is misguided.

People are spending a large amount of time getting degrees for jobs that may never be there.

Tax the Rich: Play It Again, Sam…

Barack Obama

The problem with liars and obfuscators is that, over time, it becomes increasingly difficult to keep your story straight. Nowhere has that been more evident than in the Obama administration. Is it a tax or is it a penalty (Obama’s Solicitor General argued both sides on consecutive days before the Supreme Court in order to get the ObamaCare law upheld). Is marriage an institution pre-dating government which unites a man and a woman in a spiritual and legal union, or an oppressive anachronism based on antiquated definitions of morality? Obama has argued both sides. Are massive deficits “unpatriotic,” as he accused George Bush of being, or is it a way to stimulate the economy, as he now claims? If you like your health insurance plan, you can keep it under ObamaCare, right? Maybe not, as Obama now admits that nearly three quarters of current insurance plans will fail to meet new government standards. Is the Guantanamo Bay terrorist detention facility the symbol of America’s violation of basic human rights as Obama repeatedly claimed? If so, then why is it still open nearly three years after he promised the doors would shut?

CBO report shows high-cost per stimulus job

President Barack Obama and Democrat have time and time again repeated the talking point that the $831 billion American Recovery and Reinvestment Act, passed in early 2009, helped save the economy, which was suffering the effects of a severe recession, and helped create jobs.

However, a new report from the Congressional Budget Office (CBO) via James Pethokoukis shows that the stimulus bill was largely wasteful considering its affects on unemployment, with a high cost for what jobs were created:

When [the American Recovery and Reinvestment Act] was being considered, the Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation estimated that it would increase budget deficits by $787 billion between fiscal years 2009 and 2019. CBO now estimates that the total impact over the 2009–2019 period will amount to about $831 billion.

By CBO’s estimate, close to half of that impact occurred in fiscal year 2010, and more than 90 percent of ARRA’s budgetary impact was realized by the end of March 2012. CBO has estimated the law’s impact on employment and economic output using evidence about the effects of previous similar policies and drawing on various mathematical models that represent the workings of the economy. …

On that basis CBO estimates that ARRA’s policies had the following effects in the first quarter of calendar year 2012 compared with what would have occurred otherwise:

– They raised real (inflation-adjusted) gross domestic product (GDP) by between 0.1 percent and 1.0 percent,

– They lowered the unemployment rate by between 0.1 percentage points and 0.8 percentage points,

“Super Committee” members named

All of the Members of Congress that will serve on the so-called “Super Committee,” the group created as part of the debt deal between the White House and Congress to find $1.5 trillion in “deficit reduction” in the coming months, have been made public:

The top Republicans in the House and the Senate appointed six more lawmakers on Wednesday to the bipartisan committee that is supposed to recommend steps to reduce federal budget deficits by at least $1.5 trillion over 10 years.

Speaker John A. Boehner chose three senior Republican House members: Jeb Hensarling of Texas, and Dave Camp and Fred Upton, both of Michigan.

Mr. Hensarling, who is chairman of the House Republican Conference, will be co-chairman of the new panel, along with Senator Patty Murray, Democrat of Washington.

The Senate Republican leader, Mitch McConnell of Kentucky, chose Senators Jon Kyl of Arizona, Rob Portman of Ohio and Patrick J. Toomey of Pennsylvania for the 12-member panel.

As noted, Sen. Patty Murray (D-WA), who hasn’t been one to restrain spending, was named by Senate Majority Harry Reid. She will serve with Sens. John Kerry (D-MA) and Max Baucus (D-MT). House Minority Leader Nancy Pelosi named her picks today:

House Minority Leader Nancy Pelosi (D-Calif.) has selected Rep. Jim Clyburn (D-S.C.), Rep. Chris Van Hollen (D-Md.) and Rep. Xavier Becerra (D-Calif.) for the so-called “supercommittee” on Thursday.

Dissecting the So-Called “Budget Control Act of 2011”

The “Budget Control Act of 2011” increases the debt limit by between $2.1 and $2.4 trillion, the biggest explosion of debt in American history.  It allows the government to avoid spending reductions for the next two years while squandering our last best hope of averting a sovereign debt crisis.

I am opposed to this measure for the following reasons:

  1. The purported cuts, even if realized, are far below the $4 trillion deficit reduction that credit rating agencies have warned is necessary to preserve the Triple-A credit rating of the United States Government.
  2. It blows the lid off the House budget passed in April by more than a half-trillion dollars over ten years.
  3. It makes no significant spending reductions for at least the next two years, essentially freezing spending at an unsustainable level.  While the debt increase occurs this year, significant spending cuts aren’t to be made for many years and can be ignored or reversed by future acts of Congress.
  4. The spending caps are easily circumvented by declaring appropriations to be an emergency, a response to a “major disaster,” or necessary for the “Global War on Terror.”
  5. The balanced budget amendment provisions are illusory because the amendment is completely undefined.

THE ACT FLIRTS WITH A CREDIT DOWNGRADE

Let’s not forget the gorilla in the room.  America faces an unprecedented fiscal crisis because of an unprecedented spending binge by this administration and the last.  Credit rating agencies have openly warned that the nation’s Triple-A credit rating cannot be sustained without a credible plan to reduce the projected 10-year budget deficit by roughly $4 trillion.

Porkulus III Passes Senate With Republican Help

The Senate passed Porkulus III by a vote of 70-28 with 13 Republicans demonstrating their party’s new found fiscal conservatism by crossing over to vote with every Democrat present for the bill. Like the first Porkulus signed by George W. Bush in 2008 and the Porkulus II passed last year, Porkulus III forks over billions of borrowed dollars to fund various special interest projects and tax gimmicks in the name of “creating jobs”.

The gimmicks funded in this lastest round of Porkulus include a tax holiday for the remainder of the year on Social Security payroll taxes, but only if the company hires someone out of work for more than 60 days. In addition, Porkulus commits to billions in in more mass transit spending and more highway projects (ie. more pork barrel spending).

The Senate’s version of Porkulus must be sent over to the House where it must be reconciled with the House’s much more expansive $154 billion Porkulus bill. However, the Senate plans to pass more items in the House’s bill one at a time so that Senate Majority Harry Reid and other Democrat leaders can find out how much the prices of the votes of “fiscally conservative” Republicans are.

Included are proposed Senate bills giving away corporate welfare to ethanol producers, which is expected to be supported by farm state Republicans. In addition, there is another planned Senate bill to keep Americans out of work longer by extending unemployment benefits and COBRA.

The RINOs who supported Porkulus III today are:

Blast From the Past- School House Rock: Tyrannosaurus Debt

See Video

Part of our school day today included watching a DVD of the classic School House Rock cartoons that many of us grew up watching on Saturday mornings.  I was delighted when, after watching the one that talked about the wonderful opportunity we all have to pay our fair share of income taxes on April 15th, my daughter exclaimed, “Mom, this is wrong.  They’re saying that taxes are good!”

Music to my ears…

However, I found the next video interesting- Tyrannosaurus Debt- which compared the national debt to the appetite of a rather sizable dinosaur.  What surprised me was the direct correlation made between wartime and the increase of debt.

How to Get Out of Debt

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Classic parody of an infomercial offering common sense we could all benefit from.

Peter Schiff on Glenn Beck Discussing Inflation & Martial Law

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Schiff points out that civil unrest is coming if the government continues to focus on the symptoms of inflation and not the solution.


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