The Voice of Reason: Do We Have a Revenue Problem or a Spending Problem?

The latest negotiations between the White House and Congress to avoid the fiscal cliff centers around the "balanced approach" supported by President Barack Obama during the recent campaign. 

Now, the President seems to be focused almost entirely on raising taxes for the most successful Americans, while the Republicans seem to be touting the approach once favored but now seemingly abandoned by the President -- increasing revenue and making spending cuts. Without significant spending cuts, though, the Republican-controlled House simply will not agree to raise taxes on the highest-earning Americans. In contrast, the President has outlined a specific plan for raising taxes on Americans earning over $200,000 as individuals or for married couples earning over $250,000, but has avoided any details whatsoever on how he would cut the federal budget.

But does America have a revenue problem, or does it have a spending problem?  If you're like me, once people begin talking about trillions upon trillions of dollars, it's nearly impossible to fathom.  But once you put the debt into context in numbers that people can understand, you begin to see a much clearer picture.

If America were a household, and we took away five zeros to make the numbers manageable, we would be earning about $25,000 per year (total annual government revenue).   This year, however, we will spend about $38,000 (national budget), which means that we had to put about $13,000 on our credit card (annual deficit), bringing our total credit card debt to about $164,000 (total national debt).  This year, the interest alone on that debt will cost us about $4,500, nearly one-fifth of what we took in.

By taxing the most successful Americans more, the President will add about $16,000 to our household income over the next 10 years, which equates to a paltry $1,600 per year.  However, his most recent budget projections show a deficit of at least $10,000 per year which will be added to our credit card debt. This means that by the end of his second term our total household debt will be well over $200,000.  In just eight years, this President will have added about half -- $100,000 -- of our nation's total credit card debt. The interest alone on our debt will cost our household around $6,000 per year by 2016, if interest rates remain low.

Adding to this national financial mess is the fact that our entitlement programs are growing much faster than any increases in our revenue.  Within two decades, the entitlement programs of Social Security, Medicaid and Medicare will consume 100% of annual revenue, leaving nothing for education, defense or anything else.  If the trend of spending more than we take in continues, couple of decades the interest alone on our national debt will consume 100% of our annual revenue. 

America is facing a fiscal cliff of increased taxes for nearly all Americans on January 1, 2013, if Congress and the President can't agree on a plan to extend the Bush-era tax cuts.  Our nation faces a much bigger precipice -- a Grand Canyon-like cliff -- if we don't address the debt problem and growing entitlement programs that will bankrupt this country and send the entire world into a deep depression.

As one can see, America does not have a revenue problem.  We simply have been spending, and continue to spend, money we just don't have.

This President has done more to bankrupt this country than any other President before him.

One way or another, though, this spending will stop -- either through managed budget cuts and a well-defined plan to cut our debt -- or through a bankruptcy and deep depression that will be much more painful for all Americans.


 







  

The Voice of Reason: President Obama Interviews for Job as CEO of America

HELP WANTED 
President of the United States
Searching for leader with proven experience as a chief executive officer and significant record of accomplishments. Must have experience growing revenue in the private or public sectors and promoting policies that create jobs. Must also have proven experience reaching across party lines in order to pass legislation into law. Needs to have proven experience addressing challenging budgetary issues, turning deficits into surpluses, and making tough budgetary choices. Also needs to inspire, communicate and lead a nation to prosperity.  Job will be available January 2013. Must be able to start work immediately.

An election is nothing more than lengthy job interview, with each candidate communicating his or her experience, record of accomplishments and vision for the future to the ultimate selection committee -- the voters --  in speeches, advertisements, appearances at events and a party convention. 

In the election of 2012, our incumbent President, Barack Obama, is facing a serious challenge from presumptive Republican nominee Mitt Romney because the President has not improved the standard of living for most Americans in his three and one-half years on the jobs.  Members of the selection committee -- voters -- have essentially reopened the job because the President’s performance has not lived up to the expectations of the people who selected him for the job in 2008.

Given the current state of our country, what would an interview entail for President Obama (BO), as he explains his experience and record of accomplishments to the head of our selection Committee, a fictional person named John Q. Public (JP)?   Let’s take a look at how this interview might proceed:

 JP: Thank you for meeting with us today, President Obama.

BO: It’s a pleasure to be here today. I just finished a round of golf and am heading to another fundraiser, so let’s make this quick.

JP:   I know that you're currently serving in this position.  The selection committee has decided to repost the job, but have given you a chance to re-apply.  That's why I'm interviewing you today -- to determine if you should be hired for another four years, or if we should go in another direction. 

BO:  I understand, but I think I've done a very good job.  The private sector is doing very well under my leadership and my economic plan has worked.

JP:  Your plan has worked?  I'll get to that in a few minutes. You'll have the opportunity to tell me about your record, but let's move through the interview questions.  Tell me about your experience as a chief executive officer.

BO: Well, I’ve been President of the United States for three and one-half years now.

JP: Prior to that, did you have CEO experience?

BO: I was a community organizer, state legislator and U.S. Senator.

JP: Had you led anything prior to becoming President, such as a major Senate Committee?

BO: No.

JP: Were you the CEO of a business or even a nonprofit organization?

BO: No.

JP: Have you even led a Cub Scout Troop?

BO: No.

JP: So, you essentially had no leadership experience prior to becoming President?

BO:  In college, I was president of the Harvard Law Review, and I was kind of the leader of a group in high school.   We smoked a lot of. . .but that’s another story.

JP: Well, tell me about your record of accomplishments as President.

BO: I was able to pass healthcare reform legislation and I shot Osama Bin Laden. I’ve also shot well over 100 rounds of golf and have attended more fundraisers than the last four Presidents combined at this point in their first term. As you can see, I’ve worked extremely hard and have accomplished great things.  Other than a couple of Presidents, including Abraham Lincoln, I would put our legislative accomplishments up against any President.

JP:   Let’s take a look at these accomplishments one at a time. Part of the job description is being able to work across party lines in order to pass legislation. How many Republican members of Congress voted for your healthcare plan?

BO: None.

JP: None?

BO: Zero.

JP: So not one member of the opposition party voted to support your landmark legislation?

BO: Not a one.

JP: And isn’t it true that the majority of the American public wants this law repealed?

BO: They just haven’t had time to read it. Even I haven’t had time to read it.  We're just learning what all Nancy Pelosi and the lobbyists put into the law.

JP: You also mentioned that you shot Osama Bin Laden?

BO: I didn’t actually shoot him as in pulling the trigger, but I made the decision to have him killed after obtaining intelligence where he was hiding. I did the tough part, making the decision. I thought about this decision for months. Valerie Jarrett told me that I should hold off, but after a few months of thinking about it, I decided to move forward.  That was a tough decision.

JP: You did the tough part?  Given Bin Laden's atrocities against the U.S., wouldn’t any President have made that decision?

BO: I don’t know. I don’t think that any Republican would have made that decision.

JP: Any President would have made that decision. Even Jimmy Carter would have ordered that raid on Bin Laden’s compound. Let’s talk about your other accomplishments. You’ve played golf and attended fundraisers?

BO: Yes, I’ve worked very hard. Some days I play a round of golf and then attend two fundraisers. It’s arduous work, but I love it.

JP: Have you met with your Jobs Council or Cabinet in the past six months?

BO: There hasn’t been a lot of time for that. I’ve had a lot on my plate with the golf and fundraisers. I think I've met with my Cabinet once, and my Jobs Council?  No so much.

JP: I’m sure you've been very busy.  You mentioned that your legislative accomplishments have been among the most impressive in American history. What other legislative accomplishments have you and your administration achieved?



BO: I can't think of anything right now, but I'll get back to you later if I think of something.


JP:   Let's move on to another topic.  Tell me about your experience growing revenues and adding jobs. 

BO: In my first term, 4.5 million jobs have been created.

JP: But aren’t there fewer Americans working than when you were elected?

BO: Yes, but you have to look at how many jobs we’ve created.   After all, George Bush. . .

JP: President Obama, this interview is about you. You’ve been on the job nearly four years now and have had enough time to show us what you can do.  Hasn't the unemployment rate increased since you took office? 

BO:  Yes, it has, but 4.5 million jobs have been created.

JP:  But how many jobs have been lost and how many new people have entered the workforce?  You do know that America needs to add up to 200,000 jobs a month just to break even, don't you?

BO:  Yes, but we've created 4.5 million jobs.

JP:  I heard that the first time you said it, but that statistic doesn't tell whether we're gaining ground, treading water or losing ground.   If my numbers are correct, we have nearly 500,000 fewer jobs than the day you were inaugurated.  The recent jobs report was also a downer.  Only 96,000 jobs were created and nearly 375,000 people stopped looking for work, but let's move on.  Let’s talk about the budget. Have you been able to balance the budget or at least slow down the growing debt?

BO. No. The debt has increased by 50%.

JP: Fifty percent? Are you kidding? Did I hear you correctly?

BO:  The debt has increased by 50% since I took office.  It's now at $16 trillion.  But we had to spend a lot of money to get the economy going.  That's the job of government.  We would have made more progress on jobs but the shovel ready projects we thought we were paying for weren't quite shovel ready.  After all, government, not entrepreneurs, build businesses.

JP:   What?  I don't believe what I'm hearing. 

BO:  Those business owners, they didn't build those businesses.

JP: So who built them?

BO:  They got a lot of help from the government.

JP:  Let's get back to the stimulus. So, essentially, nearly a trillion dollars in stimulus dollars was wasted?  Is that what you're saying?

BO:  It wasn't all wasted.

JP:  What about the debt?  So you haven't cut the debt even one cent?

BO: Well, George Bush. . .

JP: Again, Mr. President, this interview is about you. Every President faces issues left over from his predecessor when he takes office. You didn’t hear George Bush complain that he had to face the terrorist attacks on 9/11 because Bill Clinton didn’t have Bin Laden killed when he had the chance. But let’s move on. Tell me about your last two budgets.

BO: I really haven’t had one. But it's the responsibility of Congress to. . .

JP: What do you mean you haven’t had one?

BO: Well, Congress never got around to passing mine or one of their own.

JP: Didn’t you propose budgets in 2011 and 2012?

BO: Yes.

JP: Well, what happened? Why didn’t Congress pass your budgets?

BO: The Senate voted them down.

JP: They voted them down in the Senate?  What was the tally of the votes?

BO: 97-0 and 99-0.

JP:   But didn’t your party control the Senate both of those years?

BO: That’s right, but the Republicans. . .

JP: So, you couldn’t get a single vote for your proposed budgets even though your own party controlled the Senate?

BO: That’s right.

JP: Doesn’t that seem to indicate that even your own party won’t follow you? Doesn’t that also show a lack of leadership on your part as a CEO, not pressing Congress to actually do its job? This is basic stuff.   No organization should operate without a budget.

BO: Well, the Republicans. . .

JP: But your party controlled the Senate. So, you’re operating without a budget passed by Congress?

BO: That’s right.

JP: Well, let’s get to the last part of the job. Are you an inspiring person, President Obama?

BO: Yes, I am. MSNBC's Chris Matthews even said that he gets tingles up his leg when I speak.

JP: Chris Matthews is an absolute idiot. I think he just has a bladder problem.  He probably meant he tingles down his own leg.

BO: In 2008 people were fainting when I spoke and I inspired thousands of young people to vote for the first time.  Hope and Change.  Hope and Change.

JP: That’s great, but inspiration is one thing, and slogans are another. Actually getting something accomplished is the role of the President. What is the level of excitement for you now among the American people?

BO: It's kind of waning.  I don't understand. 

JP: Let’s review to make sure I have this information right.  Other than your experience as President, you have zero CEO experience. You made the deficit worse, and you've been unable to get Americans back to work. You've been unable to reach across party lines to get legislation passed, even a budget when your party controlled the Senate. You were able to pass healthcare legislation, but the majority of Americans don't want it. Under your watch, Navy Seals were able to kill Osama Bin Laden, and you’re a great speaker who makes Chris Matthews all tingly.   Does that pretty much sum it up?

BO: I think you’ve covered it. 

JP: President Obama, I have to say that I’m disappointed in your performance.

BO: Well, the Republicans, and George Bush. . .

JP: Mr. President, a true leader inspires and cajoles the other party to move to his side of the fence, or he meets them somewhere in the middle.  You haven't done either.

BO: But I promise I’ll compromise more if I’m just given another chance.  I need more time.

JP: About that other chance. I’m not so sure you will be given another chance.

BO: When will I find out if I’ve got the job again? Michelle is planning a few vacations for us and the kids in 2013.  We're planning to travel to all 57 states, as well as Australia, New Zealand, Russia, China, South Korea, England, Ireland. . .

JP: November 6, Mr. President.   We'll make our decision on that day. That day can’t come fast enough, as far as I’m concerned.  Thanks for interviewing again for the job. But, please, please, don’t call us, we’ll call you.

The Voice of Reason: Headlines We'll See if Obama is Reelected

If you're a news junkie like I am, you read newspapers, watch television, listen to radio and browse the internet trying to keep up with what's going on in our country and the world.
 

During the past three and a half years, we've seen thousands of headlines in the newspaper about the current administration.  But I wonder, what would the headlines in American newspapers be like if President Obama is given another four years?   Here are a few headlines I strongly believe we'll see,  given the radical political views of our current President and the current direction of our country:

• EPA Orders All Remaining Coal Plants to Close

• Unemployment Tops 8% for 60th Straight Month

• National Debt Increases to $22 Trillion

• Unemployment Tops 10% for 10th Straight Month

• Unemployment for Blacks Tops 30%

• More Americans Now on Disability, Unemployment than Working

• Average American Sees 75% Increase in Electricity

• Power Grid at Breaking Point:  Not Enough Power Plants to Power America

• Half of America Dark During Week-long Blackout

• Americans Turn Violent without Jobs, Power

• EPA Turns Attention to Natural Gas, Oil

• Americans Paying $8.25 for Gasoline; Prices Headed Higher

• Obamacare Produces Three Month Wait for Office Visit

• President, Congress Raise Taxes on All Americans to Pay for Programs

• Millions Take to Streets to Protest President's Policies

• Standard of Living for Americans Lowest Since Great Depression

The sad part is that not even one of these headlines is out of the realm of possibility.  In fact, given the direction this country is headed and our President's policies, I believe that the vast majority of these headlines have a high probability of being seen in our newspapers in the coming four years.

Do I see the unemployment rate remaining above 8%?  Yes. Do I see the unemployment rate heading above even 10%. Yes, I do, especially if the President continues his anti-business, anti-growth policies, which he'll do if he's reelected.

Do I truly see coal being phased out as an energy source?  Absolutely. Millions of Americas employed by coal directly and indirectly will be out of jobs.

Do I foresee America's power grid in grave danger?  Yes, I do.  With so many coal plants being shut down and even tougher EPA regulations on the drawing board -- with politics now driving America's energy policy -- our nation's reliable supply of electricity is at risk.

Do I see the EPA turning its attention to natural gas and oil after it has destroyed coal?  Absolutely.  The Obama Administration is against all fossil fuels that are extracted from the earth.  The Obama Administration wouldn't even approve the Keystone Pipeline, which would have provided millions of barrels of oil from our neighbor to the north, Canada.

Do I see gasoline at over $8 a gallon?  Any conflict in the Middle East, coupled with our President's "head in the sand" energy policy, could cause gas prices to top $10 a gallon.

Do I think that the President and Congress will raise taxes on all working Americans to fund their social programs?  Absolutely.  Raising taxes on only the wealthiest Americans won't raise enough revenue.  The math just doesn't add up.

Do I see mass protests and a standard of living for Americans close to what we faced during the Great Depression?  Without a doubt.  We are heading towards a financial cliff with soaring debt, economic stagnation and millions more on various government programs.  Again, the math just doesn't add up.

Some may think I'm being an alarmist.  I happen to think that I'm being a realist.  Knowing that he won't have to run again, our President will be free to do what he wants in a second term, which will result in an expansion of the policies he enacted in his first term.

We have a choice this election, and I believe that choice is crystal clear.

 

 

Obama's Actions Compared to His Words

Earlier this week, President Obama tried to blame the soaring deficits on his predecessor, George Bush. 

"It’s like somebody goes to a restaurant, orders a big steak dinner — martini, all that stuff — and then, just as you’re sitting down, they leave and accuse you of running up the tab."
-- President Obama, June 2012.

Really?

Actually, President Obama, it's like somebody goes to a restaurant, orders a big steak dinner -- martini, all that stuff -- and then you sit down, order two more huge steaks, a couple of lobsters and a round of martinis for everyone at the bar and then leave, leaving the bill to your children, grandchildren and great grandchildren. This is the more appropriate analogy, Mr. President.

President Obama's talking points about the steak dinner shows just how out of touch with the truth he really is.  The truth is that the debt has increased more in Obama's three-plus years than it did in Bush's eight years.
http://www.cbsnews.com/8301-503544_162-57400369-503544/national-debt-has-increased-more-under-obama-than-under-bush/

But this isn't the only whopper our Campaigner in Chief has espoused in recent weeks about his spending habits.  

"My opponent won’t admit it, but it’s starting to appear in places, like real liberal outlets, like the Wall Street Journal: Since I’ve been president, federal spending has risen at the lowest pace in nearly 60 years."
-- President Obama, May 2012

Unbelieveable.

The truth is that even if you give President Obama every possible benefit of "Democrat fuzzy math" -- including moving all outlays in FY2009 made by the Obama Administration to the Bush Administration -- Obama increased spending by a whopping 24 percent.
 http://www.americanthinker.com/blog/2012/05/even_with_nuttings_math_obama_1st_term_spending_up_24_vs_bushs_last_term.html

Obama has not been truthful with Americans about his spending habits and intentions, almost from the day he was elected.

“Today, I’m pledging to cut the deficit we inherited in half by the end of my first term in office. This will not be easy. It will require us to make difficult decisions and face challenges we’ve long neglected. But I refuse to leave our children with a debt that they cannot repay — and that means taking responsibility right now, in this administration, for getting our spending under control."
-- President Obama, February 2009

Three years and $6 trillion in additional debt later, President Obama continues to try to make uninformed voters believe he's not a big spender. 

Let's hope that the majority of voters take the time to search for the truth, instead of taking anything he says at face value.