Wednesday, March 9, 2011

Does Debt Matter?

Government never of itself furthered any enterprise, but by the alacrity with which it got out of its way. Government does not keep the country free. Government did not settle the West. It does not educate. The character inherent in the American people has done all that has been accomplished. (Not sure who said this.)

BUT government for years has gotten in its way….From the thirties on government has entwined itself into the lives of people and business. Little bit here and there till finally a tipping point has been reached. Now what is left is this generation of voters who can't imagine their lives without some form of government social program. This talk of reducing the size and scope of government even somewhat is frightening and I can understand why it frightening. This is not just about this second or third generation welfare recipients but through the mired of social programs, family tax credits, SS, colleges grants, etc.. Many families, if not most, are dependent on government for their standard of living. The effect of just cutting back here and there on the programs will have a impact to some degree on them. With this said, who then is left to make the sacrifice?

Latest and greatest non-politically funded poll:

There are widespread misperceptions about the state of the federal budget. A majority of voters incorrectly believe the federal government spends more on defense/foreign aid than it does on Medicare and Social Security (63%).

Also, a similar majority (60%) incorrectly believes problems with the federal budget can be fixed by just eliminating waste, fraud and abuse. Voters do not casually agree with these untruths- at least 40% strongly agree.

Further, less than half (44%) believe Medicare and Social Security costs are a major source of problems for the federal budget (49% disagree).

The waste in government is a strong concern to voters – again 60% believe fixing the waste will solve the nation’s budget problems, and voters say that 42% of each federal dollar is wasted.

Voters are comfortable with significant cuts to the federal budget. First, a majority (53%) of voters have paid “a lot” of attention to the debate over federal budget cuts, and a mere 21% say the $60 billion in cuts that Congress is considering is too high. A plurality (36%) say the cuts are too low, with 31% saying they are about right. (21 % + 31% = 52% )

The political impact for a member(s) who is in favor of the cuts appears to be a net positive. A majority (52%) are more likely to support their members of Congress if he or she supports these cuts, while only 28% are less likely. Support for re-electing a member who votes in favor of these cuts is high among Republicans (67%), and reaches majority support among Independents (54%). At the same time, 45% say they will be negatively impacted by the cuts, while 33% will feel no impact and 13% believe they will be positively impacted.

Voters who said they would be negatively impacted were asked a follow-up, open-ended question, on how they would be impacted. The top response was that it would hurt Social Security and Medicare benefits (22%), followed by “unsure” (17%), and that it would generally cut government services (14%).

Voters are divided on who they would blame if the government is forced to shut down for not having a budget. While 37% would blame the Republicans in Congress, 20% would blame the Democrats in Congress and 22% would blame Obama.

Polls are nothing more or less than a snapshot but here we are trying to get more or less a token cut in spending and there is no real will in the country to do so. Certainly no overall will to do so in our Senate…

What seem most incredible is the folks who benefit most from these social programs seem to have no awareness that the money they receive is taken from their neighbor. What is also incredible is the neighbor doesn't seem to realize the money is taken from them by their government and given to these recipients. Some do....Most don't think about it… Nor do they question all the other ways governments spend their money.

This country is not about to go under but with the passing of each day our standard of living slips. Or national and individual debt goes up. This economic downturn has decimated the middle class the very families who pick up a huge part of the national tax burden.

Last year we added 1,853,000 new people to the country
Labor force dropped 312,000
Those not in the labor force rose to 2,165,000
In Jan (2011) 319,000 dropped out of the work force
In Feb (2011) 87,000 dropped out of the work force

Best estimate is 40 odd million people are on some government support program. Everyone associated with government tells us things are looking better. (I meant to mention to our readers that I got this great buy on the bridge from Vicksburg over into Arkansas. I'm willing to sell an interest in the bridge if anyone wants to get into this really good deal.)

Has anyone noticed that the GOP in both houses are keeping as quiet about what they are doing as the DEMs did? Rand Paul and a couple of others are the exceptions.

More time that passes the more it seems we must raise our goals of electing a majority in both houses and in the process we must be selective and replace many of the old guard…. Time is not on America's side… A welfare system, our medical system, and the national printing press is all under the control of a government that is not responsive to us and do not behave responsibly. A fourteen trillion dollars debt is looming and this group of leaders are fiddling.

Does Debt Matter?

Americans are not pessimists. A their core American are optimists. However, lots of trees makes a forest and what so many American are looking for is a few good trees. Like congress and main stream media voters get caught up in the euphoria of finding the one small tree. (I.E. a 60 billion dollar cut and a 4 trillion dollar budget.) Heaven help us.

Does debt matter? It was and is growing debt and excessive credit that brought this nation to a financial tipping point. National and international credit, for the past ten years, has grown at an annualized rate of approximately 11%, while real GDP has grown approximately 4% over the same timeframe, meaning credit and debt growth has outgrown GDP growth by an astounding 275%.

Many American families have topped even these numbers. So the question of whether or not debt matters can be answered in the number of home foreclosures. If we, the voters, do not keep our family house in financial order we should not expect/demand our government to keep the national house in order. We haven't for the most part and our government certainly hasn't. We intend to balance our check book and they do not. (Turn on any nightly news and listen to our leaders rational.)

Over our history we have endeavored and our perseverance has brought us through many difficult times. During those earlier times we were a different people. We were a group that no one in their right mind wanted to mess with. Our leaders could say we are all going up 'that hill' and we all went up that hill. We did because there was a sense of trust. That trust has been betrayed. The betrayal has fragmented the people. There are no longer shared common beliefs, values,or principles.

A few can't do the lifting for the many.

Once a congressional member has been reelected twice they are very difficult to unseat. Yet,these are the ones we need to re-vet… Do the members have the vision and courage to do the things that needs to be done to put our national financial house in order?….

Historically leaders 'show up' in crisis. Look closely at some of these new governors…. Look at some of the new house members… The leadership that is needed is out there. We just need to find them.

Look ar some of the poll numbers above. Elections are 606 day, 4 hours, 4 minutes till the polls on 2012 elections. If all the Teaers enlighten one person per day, on average, 2012 will become a perfect storm. There are plenty of Rand Paul's out there. We just have to find them and that is our job, our mission, and the nations hope.

A note from our Federal Government.. (CBO)


According to the Congressional Budget Office, the federal government will post a $223 billion deficit for the month of February, making it the largest monthly deficit ever posted in U.S. history. (Just a little add-on to brighten your day.)

If its to be its up to we….


No comments:

Post a Comment

Let us know what you think?