Month: October 2024

Taking a look at the horrific headlines facing the nation, it would be understandable to conclude that there is massive incompetence at the federal, state and local levels.

Why would any executive, legislator, or law enforcement official such as an attorney general or district attorney let repeat felons continuously out on low or no bail? Why would they penalize heroes who seek to defend themselves and others from assailants? Who in their right mind would “Defund the Police” in an era of rising crime?

Why would Washington leave the nation’s borders wide open to millions, despite the skyrocketing rise to power of drug cartels, human traffickers, and organized criminal gangs?

Why do state boards of education ignore the transfer of funds meant for academic subjects towards propaganda that vilifies the United States?

How could Washington enact, year after year absurd budgets that spend far more than is taken in by taxes? Why do they act as though essential items, such as defense, preserving social security, and other needs, have the same priority as pork barrel projects?

Why would the White House adopt scientifically unsound energy policies that result in spiraling inflation?
 

Of course, it is not that our elected officials are so incompetent that that they cannot understand how foolish their policies are. They hear the anguish of the residents of cities as they increasingly fall victim to crimes. They can clearly observe the devastation illegal immigration has produced throughout the nation. Despite all attempts at censorship, they know the American public sees through their nonsensical slander of more conservative political opponents, and that voters are sickened by attempts to divide the nation. Families know that the government cannot continue to spend more than they take in.

The fact is, it is not incompetence.  It is the pursuit of goals so alien to the American way of life and so contrary to the nation’s Constitution that motivates the elected officials, media kingpins, and academic elites that motivate these bizarre policies.

Underlying all of this is an attempt to end the capitalist economic system, and to eliminate the ability of the Bill of Rights and the legacy of personal freedom that would stand in the way of that goal.  That includes the right to inculcate your own children with the morals that you believe in, and the ability to pass on your assets to them.

Defending your property against thieves indicates that you have property rights in the first place, so worrying about criminals taking what doesn’t belong to them is not a priority. Pointing out that your tax dollars shouldn’t go to illegal aliens who have not produced anything is pointless to progressive leaders who don’t believe that the fruit of your labor belongs to you. They want to flood the nation with illegals who were not brought up in the history of individual rights, and who want and need a strong government to decide how to distribute income is an essential part of their gameplan.

They don’t care if their policies have made food, shelter and energy unaffordable, because that increases reliance on the government to bail you out and make you wholly dependent on them. Achieving the ability to fend for yourself is a distraction from the goal of giving the government the power to decide what you should spend your money on.

 That especially applies to your personal vehicles.  So what if you can’t afford to fuel your car?  The concept of personal transportation freedom is anathema to the advocates of socialism. To them, the government should decide when, where, and how to travel.

Illustration: Pixabay

From the time that the first pioneers arrived at Plymouth Rock and Jamestown, America had always been a forward-looking nation. Now, however, it is mortgaging its future to pay for programs it simply can’t afford. The problem had been growing for decades, but the acceleration under the current Administration has reached a breaking point.

The problem is so vast that interest expenses on the national debt, now reaching $35 trillion, exceeds what America spends on its own national defense.

 In the current federal fiscal year, which began in October, interest payments have reached $514 billion dollars. The problem is accelerating. The deficit totaled $1.6 trillion in fiscal year 2024, grows to $1.8 trillion in 2025, and then returns to $1.6 trillion by 2027. Thereafter, deficits steadily mount, reaching $2.6 trillion in 2034.  Those deficits will have to be paid for by borrowing, and interest rates will grow accordingly.

According to the Congressional Budget Office “Since the Great Depression, deficits have exceeded that level only during and shortly after World War II, the 2007–2009 financial crisis, and the corona­virus pandemic. Debt held by the public rises each year in relation to the size of the economy, reaching 116 percent of GDP in 2034—an amount greater than at any point in the nation’s history. From 2024 to 2034, increases in mandatory spending and interest costs outpace declines in discretionary spending and growth in revenues and the economy, driving up debt. That trend persists, pushing federal debt to 172 percent of GDP in 2054.”

If the U.S. government were a private company, it would be staring at bankruptcy. 

The problem hits every American hard through inflation. The Committee for a Responsible Federal Budget describes the impact on the economy: “Higher interest rates on federal debt and bank reserves increase interest rates throughout the economy on everything from mortgages to student loans to credit cards. They also contribute to a phenomenon called ‘crowd out,’ where investors purchase government bonds instead of investing in the private sector, thus slowing economic growth. CBO estimates that for every $1 of new U.S. government borrowing, total investment falls by 33 cents and an additional 24 cents of the return to investments goes abroad, resulting in slowing income growth over time.”

 A 2023 Heritage study notes “The amount of additional spending resulting from legislation passed between March 2020 and December 2022 is astonishing: $7.5 trillion—more than $57,400 dollars per household. While federal spending per American has steadily increased in real terms over the past several decades, the pace of the increase in recent years has been shocking.”

Senator Mitch McConnell stated t last year that “Since President Biden took office, consumer prices have risen more than 16 percent. American families are paying 20 percent more to put food on the table than they did in January 2021. And 36 percent more on energy. But over more than two years of Washington Democrats’ runaway inflation, President Biden’s top advisors have refused to even admit that there’s a problem – let alone that their policies are driving it.” 

The Government Accounting Office (GAO) worries that “The federal government faces an unsustainable long-term fiscal path that poses serious economic, security, and social challenges if not addressed. Congress and the administration will need to make difficult budgetary and policy decisions to address the key drivers of federal debt and change the government’s fiscal path. The sooner actions are taken to change the long-term fiscal path, the less drastic they will need to be. Debt is projected to grow faster than the economy over the long term.”

At the end of fiscal year 2023, the $26.2 trillion in debt held by the public was about 97 percent of gross domestic product (GDP). GAO projects that under current revenue and spending policies, debt held by the public will reach its historical high of 106 percent of GDP by 2028, and grow more than twice as fast as the economy over a 30-year period, reaching 200 percent of GDP by 2050.

Perpetually rising debt as a share of GDP is unsustainable and has many direct and indirect implications on the economy and American households and individuals. Debt held by the public is projected to grow faster than GDP.

Illustration: Pixabay