Obama Addicted to Debt, Deficits and High Taxes
Posted by FactReal on July 29, 2011
|Via Investor’s Business Daily|
|President Obama does not care much about deficits — other than worrying that big debt might matter in his re-election campaign.
In his first three budgets, Obama borrowed nearly $5 trillion. Currently, the government is borrowing about 45% of everything it spends. Obama’s projected 10-year plan would add nearly $10 trillion to existing U.S. debt.
This spring he proposed the largest annual deficit in U.S. peacetime history, which is why his $3.7 trillion budget for 2012 was rejected in the Senate by a 97-0 vote.
In other words, under Obama, the government during the last three years has borrowed on average about $4 billion each day. That staggering sum is far in excess of the $1.6 billion per day during the eight-year tenure of George W. Bush, who until Obama’s presidency had borrowed more than any peacetime president.
Apparently in Obama’s worldview there are advantages to deficits that explain his fondness for unprecedented borrowing. In Keynesian terms, massive government red ink is supposed to foster economic prosperity by creating goods and services that a purportedly less-efficient private sector cannot.
The administration certainly has added an additional 100,000 federal jobs and expanded food stamps to nearly 50 million recipients — and in the process enlarged the pool of potentially grateful constituents. This belief in the superior wisdom of the state explains why almost all the Cabinet secretaries in the Obama administration came out of state or federal government, not from private enterprise.
Massive deficits not only empower more federal hiring and entitlements, but at some point lead to higher taxes. […]
Higher taxes to Obama are not necessarily bad if they serve to redistribute income from the affluent to the less well off — a sort of “spread the wealth” government way of addressing the supposedly inherent unfairness of private-sector compensation. […]
The megaborrowing also did not lead to the robust economic recovery of the cyclical sort that usually follows a steep recession. Unemployment is still at 9.2%. GDP remains anemic. Energy prices are still sky-high. The housing market continues to be depressed. Consumer and business confidence is flat. […]
So opposition to the president’s budget proposals amounts to more than just a know-nothing rant about no taxes, period. The unease reflects genuine puzzlement — and, yes, anger — over a president addicted to debt, who suddenly wants to preach to others about their responsibility to pay back what he once so zealously advocated that we should borrow.