'Unsustainable" is a scary word that recently entered political discourse, coming authoritatively from Congressional Budget Office Director Douglas Elmendorf. Unsustainability is the operative moniker for Barack Obama's massive deficit spending, which Elmendorf said "cannot be solved through minor tinkering."Massive Deficit Spending, in other words spending much more than income over a period of time. How much is illustrated by this statement.
The CBO predicts an increase in our public debt from $7.5 trillion at the end of 2009 to $20.3 trillion at the end of 2020 if Obama's fiscal 2011 budget is implemented. As a percentage of gross domestic product, the debt will rise to 90% from 53%.By the end of 2020 our current fiscal policy will almost double the National Debt in 11 years. By 2020 we will be spending 9 cents for every 10 cents of National Gross Product. This is the path of Greece. And it is ludicrous to think that the richest country in the world will be financially unable to sustain itself by 2020.
So what will be necessary to avoid this fate?
Sen. Kent Conrad, D-N.D., sharpened the focus by asking the CBO director: "What's going to be necessary (is) either a 25% increase in taxes or a 20% reduction in spending, or some combination thereof. Is that correct?" Elmendorf replied "yes."A 25% increase in TAXES is one choice. Think you are paying too much in Taxes now? Consider what a 25% increase would do to your family.
There is another problem with a tax increase. Once Congress gets its hands on more revenue, they find another way to spend it. Politicians don't like to give up money. On the other hand, this madness of Spend, Spend, Spend and let someone else pay for it has to stop. It must stop before we are bankrupt.
For an example of where we are headed, lets look at where Obama came from.
Illinois was the stomping ground for years for Obama, his top advisers Rahm Emanuel, Valerie Jarrett and David Axelrod, and his appointees such as Secretary of Education Arne Duncan. After they promoted themselves to Washington to run the country, other Obama associates who didn't make the cut continued to run Illinois into the ground, as the Illinois unemployment rate jumped from less than 5% to nearly 11%.Illinois is now projected to be in a worse financial condition than California. Want proof?
Under years of Democratic leadership, Illinois has refused to honor its obligations, cut spending or trim its shockingly large deficit, which at $12 billion per year approaches nearly half its budget. As a result, Illinois' credit rating has been downgraded and it pays a massive amount in interest on its loans.Unemployment is nearly 10% at present. Actually it is much higher. The only reason the "Official Unemployment Figure" is 9.5% is the Government has stopped counting those who have given up looking for a job. Business owners are not hiring because of the cost of doing business is uncertain. Taxes are going up. Health Insurance Tax, Business Taxes, Estate Taxes and Income Taxes are going up, but nobody knows how much. In this unsettling financial climate, employers cannot afford to hire new people.
The challenge for all of us who vote is to elect the people who will create jobs. The jobs will be created by balancing the budget and reducing the size of Government.