The View From 1776
Saturday, March 05, 2011
Will We Be Equal To The Challenge?
Jeff Lukens lays out the daunting prospect.
A Battle We Cannot Afford to Lose
By Jeff Lukens
Patriots since the founding have always risen to the challenges of their time. Today, we must do the same. As the debt crisis deepens, the time is growing short. We must demand our lawmakers speak truthfully about the budget, and offer real solutions.
We know that the biggest threat to our way of life today is our growing debt. Yet progressives in government and in the media disrespect us. They label us extremists and racists when all we are calling for is a responsible government that controls its spending.
Federal spending is up 108 percent from what it was 10 years ago. The Congressional Budget Office estimates the deficit this fiscal year will be nearly $1.6 trillion, the largest in peacetime history. The government borrows 40 cents of every dollar they spend. As the deficit reaches 10 percent of our annual GDP, the debt is now equal to it.
By the submission of his budget, President Obama tacitly admits that he is not serious about addressing the problem. His budget will more than double the deficit in the next few years. And within five years, the debt will grow to $21 trillion. By then, interest payments on our debt will be nearly half of federal tax receipts, and inflation will run wild. This is a mathematical certainty unless great change comes to Washington very soon.
And with the stimulus money soon running out, the bailouts of state and local governments will end. Across the country, they have already started cutting police, firefighters, emergency medical, and teachers. The protests in Wisconsin are just the beginning. In Illinois, tens of thousands of people had been waiting for their checks for months until state officials finally punted by raising taxes and borrowing more money. Dozens of other states have similar horror stories.
We cannot believe half of what our government tells us, and nobody in the media even bothers to cover it. A decade ago, we were running surpluses. What few people knew was that Social Security withholdings gave the federal government its artificial surplus. But now, with our aging population, Social Security is already operating in the red and requires tax general revenue to meet its commitments. And then they tell us unemployment is 9.4 percent when the true number of people seeking work is closer to 20 percent. You see, it is all in how they define unemployment.
But their misleading statements are catching up with them. While the government reported inflation to be only 1.5 percent for 2010, the U.S. already has inflationary problems with food, energy, clothing, and other necessities. The CRB food index was up 36 percent over the past year, and raw materials were up 23 percent. The government can also define inflation in a non-threatening way, but it is already causing anxiety around the world and riots in the Middle East. It is sure to be higher in 2011 and beyond. Much higher.
With the dollar as the world