Thursday, February 4, 2010

Obamics Part 2--This isn't Monopoly Money or a Theoretical Exercise--It's Sheer Lunacy

"Money is...that which sustains its (government) life and motion"
Federalist 30, Alexander Hamilton

My undergraduate degree is in Psychology. One of the first principles we study is: projection--the attribution of one's own ideas, feelings and beliefs onto others. Projection is dangerous in many human interactions to be sure, but it is especially dangerous in elections. As voters, we make certain assumptions about our leaders and their conduct. We expect them to tell the truth, not to steal (especially from us) and to work hard. Very hard. At least as hard as we do each day rushing to work, caring for our families. In short, we project our basic values onto them.

And we expect them to act like grown-ups.

Instead they are acting like drunken sailors. Adolescent ones at that.

These are the facts:

  • Since the end of January 2009, the annual deficit has more that tripled from $422 billion to $1.42 trillion at the end of October and RISING.
  • The National Debt hovers around 12.3 trillion equal to approximately $40,000 per capita.
  • In FY 2009 the government paid $383 billion in interest on the debt. It is important to note that interest rates are at historical lows, artificially camouflaging the real, sustainable cost of servicing the government's (exorbitant and rising) debt.
  • GDP--which is a measure of all the goods and services produced in the U.S. was $14.2 trillion. That equates to approximately $46,500 per capita. (Remember the per capita share of the National Debt is $40,000 per capita--a slim margin and shrinking.)
  • The debt has grown $3.9 billion/day since 2007.
  • President Obama's new budget, just submitted to Congress, calls for a 5.7% increase in spending despite his much touted "spending freeze" on some portion of discretionary spending. And while we're on the subject--discretionary spending in his budget exceeds $1.4 trillion dollars. This is not defense spending or security of our borders spending, this is DISCRETIONARY--read: entitlement spending.
  • The National Debt is projected to grow to $18.6 trillion dollars (according to Obama's budget) in 2020. Or 77.2%. And I think we can all agree, that might just be a tad optimistic.
  • In 2008 the government collected $2.2 trillion in revenue. (reminder: they collected the majority of that from us: individual taxpayers).
What does all this mean? Well, the government is spending somewhere around 60% more than they are earning each year. And the accumulation of that debt--the National Debt-- is currently hovering close the per capital earnings (Gross Domestic Product) of each citizen in the United States. They have bankrupted the government and now they are about to bankrupt us. Any grown up can see that this kind of deficit spending is not sustainable. Not responsible. It is LUNACY.

So my fellow citizens, we need to stop projecting our values and honor onto those in Washington. We need to stop assuming they have our best interests at heart.

As Hamilton went on to say in Federalist #30 " the usual progress of things, the necessities of a nation, in every stage of its existence will be found at least equal to its resources." He was almost right. The current government's insatiable appetite for power requires they confiscate our money and our children's money and their children's money and their children's children's money...

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