The Ticking Time Bomb No One Is Talking About
Keep Voting for Bigger Government
The federal debt moved past $19,400,000,000,000 on July 19th, according to the data released by the U.S. Treasury. As of this writing, it is at $19,421,382,000,000 and climbing.
At the close of business on October 30th, the day Congress passed the budget law suspending the debt limit until 2017, the federal debt stood at $18,152,981,685,747. In the nine months since then, the federal debt has increased by over $1,250,000,000,000.
Politicians in Washington DC continue to kick the can down the road. In the private sector, we call that failure or negligence. The federal government is spending much more money than it takes in, over $460 billion actually. By involving itself in social services, education, and healthcare, the federal government has taken on far too many responsibilities. It tries to do too many things, while failing to perform its most basic duties.
The Founding Fathers would be quite confused at the many areas in which the federal government is now active.
As the US government has intervened in healthcare and jumped into education, costs in both industries have skyrocketed, well past inflation. Similarly, government regulations in these same industries and of businesses overall have helped create a culture of dependency and mediocrity. Over 13 million people have been added to food stamps since President Obama took office. And 10 percent of the federal budget today is on safety net programs alone, while 6 percent goes to paying down the interest of our debt.
Still, Americans continue to clamor for bigger government. Not worrying about the cost. That’s for someone else to worry about.
Another Ticking Time Bomb?
Americans continue to graduate from colleges with worthless degrees, but also mountains of debt. All the while, the federal government has become more involved in lending to students. And, with colleges and universities realizing the federal government is backing these loans, they can jack up the tuition, knowing students and dollars will keep flowing in no matter what.
The next financial crisis to kickstart a recession is coming in the federal college loan sector. During Q4 2007, the federal government loaned out almost $116 billion to students. Flash forward to Q1 2016, over $986 billion has been borrowed by students from the US government. The loan balance has risen 853 percent from the time loans began in the 1990s. Already, Obama has moved to discharge some of the debt, and it is likely that loans will be forgiven after 20 to 25 years in the near future.
Still, the solution fans of big government propose is more taxes and spending. There have been arguments made that governments can tax and spend their way out of a deficit, but these are incapable of solving the underlying issues.
Competition over Coercion
With Obama in charge of the House and the Senate and all the political capital world in 2009, what was his grand idea to guide the nation out of a recession?
Every medical professional I’ve spoken to has told me that the new regulations in effect and coming our way will be catastrophic for the industry. Healthcare is such a vital part of our lives, we cannot let big government ruin that too. Instead of having doctors focus on patients, doctors are forced to check boxes on computer forms, treating patients as just another job to get done, as opposed to a human being to treat. Furthermore, it discourages business growth by forcing a company of at least fifty employees to provide health insurance. It appears that Obama and co. decided to upend our nation’s medical and healthcare insurance industry in order to insure roughly 15 million Americans in a country of nearly 325 million. Government cannot control the price of healthcare, it can only make matters worse.
According to Real Clear Politics’ average of five polls taken over the first five months of 2016, the American public’s approval of Obamacare is averaging only 39 percent. An astonishing 48.8 percent of Americans currently oppose the “affordable” health care law. But, like any government program, once it goes into effect, it will be near impossible to stop.
Despite the fact that competition between insurers and medical providers essentially keeps prices low, the socialists infecting the Democratic party think they can run healthcare. And, they also feel like they can run education, healthcare, and the entire economy, for that matter, better than the free market. That is why we are $20 trillion in debt, with $200 trillion of unfunded liabilities.
The Bomb Will Go Off Eventually
The federal debt has more than doubled under President Obama and our elected officials have been beholden to special interests and big business as opposed to the citizens for some time.
The solution cannot be to elect crooked Hillary.
Donald Trump laid out his economic plan for America in Detroit not long ago. He attempted to contrast his pro-growth strategy with Clinton’s $1 trillion-plus tax plan.
Betsy McCaughey thinks voters should choose Trump’s growth. Trump finally “stopped the wisecracks and laid out a serious plan to jumpstart the nation's limping economy,” McCaughey wrote in Investor's Business Daily. “He proposed tax cuts, regulatory relief, unfettered development of coal, oil and natural gas, and fairer trade pacts.” He has promised to cut the red tape choking the small businesses across America. This is what voters care about. Trump would be smart to stick to topics dealing with the economy.
Hillary Clinton jumped on Trump right away for his "tax breaks for big corporations." She would instead lob her standard message of class and race warfare, reminding us how divisive the Democrats really are. Trump is proposing a plan of economic growth for everyone. Businesses need to be freed so people can have good paying jobs so they can provide for themselves and their families. Corporate tax rates in the US are already the highest in the industrialized world at 35 percent. If we are to remain on top, we must remain competitive.
McCaughey points out America’s innate idiocy: “Since 2000, nearly every industrialized country has cut corporate taxes to compete for business – except the U.S.” Liberals fail to realize that by taxing something, you get less of it. So, by taxing and regulating our companies, there will be less of them. Therefore, there will be less jobs. Many businesses will choose not to battle the regulatory state. Others will simply opt to move to another country.
Trump spoke to this issue in his speech. “In other words, we punish companies for making products in America – but let them ship products into the U.S. tax-free if they move overseas. This is backwards. All of our policies should be geared towards keeping jobs and wealth inside the United States.” Donald’s focus has been on bringing back American jobs by working with companies as opposed to attacking them. Jobs could very well come back within our borders if companies could make a profit here without getting penalized. Another factor that reduces US employment is the fact that US employees simply cost too much.
Trump continued, “Under my plan, no American company will pay more than 15% of their business income in taxes. Small businesses will benefit the most from this plan. Hillary Clinton’s plan will require small business to pay as much as three times more in taxes than what I am proposing, and her onerous regulations will put them totally out of business. I am going to cut regulations massively.” Cutting regulations is essential for communities to get moving in the right direction. Cities like Detroit desperately need new job creation. Onerous government regulation and an impossible tax code only reduces the chances of growth catching on in any of these depleted areas.
Our taxes must be simplified. Tax simplification will apparently be a major part of Trump’s economic plan. He claims we waste 9 billion hours a year in tax compliance. Trump’s plan would reduce the number of brackets from 7 to 3 and would streamline the process overall. Working with House Republicans, Trump would use their 12, 25 and 33 percent numbers previously proposed.
Donald Trump has shown a seriousness in reducing our overall debt and getting America back to work again. Hillary Clinton has shown an unwillingness to depart from her socialist-leaning party. Long are we from the times when Hillary’s husband spoke of the era of big government being over. Gone is the party that worked with House Republicans to balance the budget and reform welfare.
We need an administration who is serious about working with the other side, paying down our debt, and getting our government to work for the citizens, as opposed to the other way around.
“Government is not the solution to our problem, government is the problem”
- Ronald Reagan