“Between 2009 and 2012, the federal government recorded the largest budget deficits relative to the size of the economy since 1946″
They wouldn’t have to raise the debt ceiling unless it was going to be the largest debt ever.
WHAT YOU OWE
$16.699 trillion current debt ceiling
316,809,000 people in the USA
$52,709.99 the amount every person owes (the largest of all time)
In his 2013 State of the Union address, President Obama said that we must invest in the true engine of America’s economic growth – a rising and thriving middle class. He said that every day, we must ask ourselves these three questions: “How do we attract more jobs to our shores? How do we equip our people with the skills needed to do those jobs? And how do we make sure that hard work leads to a decent living?”
This morning the President sent Congress his Budget for Fiscal Year 2014, which presents his plan to address each of these questions. He also spoke to the press about his proposal in the Rose Garden, and said that while our economy is poised for progress, we need to get smarter about our priorities as a nation. And that’s what his 2014 Budget represents — a fiscally-responsible blueprint for middle-class jobs and growth:
To make America a magnet for good jobs, this budget invests in new manufacturing hubs to help turn regions left behind by globalization into global centers of high-tech jobs. We’ll spark new American innovation and industry with cutting-edge research like the initiative I announced to map the human brain and cure disease. We’ll continue our march towards energy independence and address the threat of climate change. And our Rebuild America Partnership will attract private investment to put construction workers back on the job rebuilding our roads, our bridges and our schools, in turn attracting even more new business to communities across the country.
To help workers earn the skills they need to fill those jobs, we’ll work with states to make high-quality preschool available to every child in America. And we’re going to pay for it by raising taxes on tobacco products that harm our young people. It’s the right thing to do.
We’ll reform our high schools and job training programs to equip more Americans with the skills they need to compete in the 21st century economy. And we’ll help more middle-class families afford the rising cost of college.
To make sure hard work is rewarded, we’ll build new ladders of opportunity into the middle class for anybody who is willing to work hard to climb them. So we’ll partner with 20 of our communities hit hardest by the recession to help them improve housing, and education, and business investment. And we should make the minimum wage a wage you can live on — because no one who works full-time should have to raise his or her family in poverty.
President Obama’s budget also replaces the across-the-board spending cuts known as the sequester with smarter ones, making long-term reforms, eliminating actual waste and programs that are no longer needed.
And finally, because he is willing to make tough choices and serious about finding common ground to further reduce the deficit, President Obama’s budget incorporates his compromise offer he made to House Speaker Boehner that achieves another $1.8 trillion in deficit reduction in a balanced way. When combined with the deficit reduction already achieved, this will exceed the goal of $4 trillion in deficit reduction, while growing the economy and strengthening the middle class.
Texas Straight Talk – A Weekly Column
Rep. Ron Paul (R) – TX 14
Last week, the House approved another increase in the national debt ceiling. This means the government can borrow $1.9 trillion more to stay afloat and avoid default. It has been little more than a year since the last debt limit increase, and graphs showing the debt limit over time show a steep, almost vertical trend. It is not likely to be very long before this new ceiling is met and the government is back on the brink between default and borrowing us further into oblivion. Congressional leaders and the administration acknowledge that the debt limit will need to be increased again next year. They are crossing their fingers that the forecasts are correct and they will not need another increase sooner, even before the 2010 midterm elections.
Continually increasing the debt is one of the logical outcomes of Keynesianism, since more government spending is always their answer. It is claimed that government must not stop spending when the economy is so fragile. Government must act. Yet, when times are good, government also increases in size and scope, because we can afford it, it is claimed. There is never a good time to rein in government spending according to Keynesian economists and the proponents of big government.
Free market Austrian economists on the other hand know that times are bad because of the size and scope of government. The economy is fragile because of the overwhelming stranglehold of bureaucracy and taxation of Washington. Any jobs Washington might create through these endless spending programs are paid for through more taxation and debt put on the productive sectors of the economy. Just as insidious is the hidden tax of inflation caused by the Fed and its ever-expanding credit bubble. When the Fed steps in with its solutions, it only devalues the dollars in everyone’s pocket while encouraging more reckless waste on Wall Street. All of this leads to a worsening economy, not an improved one.
And so the downward spiral continues. The worse things get, the more politicians want to spend. The more they spend, the heavier the debt load becomes and the more we have to spend just to maintain our interest payments. As our debt load becomes unsustainable, the alarm of our creditors increases. It is becoming so serious that our credit rating, as a nation, could be downgraded. If this happens, interest on the national debt will increase even more, leading to even higher taxes on Americans and inevitably, price inflation.
Still, Washington is full of talk of more regulation, more taxation and more spending. The Senate is still struggling to pass a massive regulatory increase on the financial sector, even as the stock market suffers more shockwaves. Pay-as-you-go rules give the appearance of fiscal responsibility, but in truth these rules are only used as a justification to raise taxes. Spending programs like healthcare reform, increased military spending, and a recent doubling of destructive foreign aid are viewed by Washington as necessary and reasonable, instead of foolishness we absolutely cannot afford.
The people understand this, which is why there is so much anger directed at politicians. Washington needs to change its thinking and adopt some common sense priorities. The Constitution gives some excellent limitations that would get us back on the right path if we would simply abide by them. The framers of the Constitution understood that only the ingenuity of the American people, free from government interference, could get us through hard times, yet Washington seems bent only on prolonging the agony.