Updated: What? Government Debt Strangles The Economy? (& The Big Freeze Fallacy)

Debt, Economy, Government

You don’t say! Since when? The bundling by the Congressional Budget Office of government debt and economic stagnation is a newish thing. The so-called partisan patsies of the president’s office usually keep the two intertwined categories discrete and separate, leading the country to think that the one has nothing to do with the other, and that the economy is subject to the voodoo of “animal spirits.”

“The nonpartisan CBO said the deficit for the current fiscal year will come in at $1.35 trillion, a slight improvement over the $1.38 trillion it predicted last August. But it warned that rapidly rising federal debt could strangle the economy.” [My emphasis]

Reuters writers, on the other hand, are keeping it real with this subtle subterfuge:

“The U.S. budget deficit will remain at levels not seen since World War Two, congressional forecasters said on Tuesday in a report that lays out the stark challenge facing President Barack Obama as he seeks to boost the economy and cut spending at the same time.”

Did you spot the propaganda in the Reuters item? In order to amount to a half-honest lede, “Boost the economy” ought to have been followed with “by spending,” or replaced by those two words.

Update (Jan. 27): THE BIG (SPENDING) FREEZE; MY EYE!

WSJ: “In 2007, before the recession, federal expenditures reached $2.73 trillion. By 2009 expenditures had climbed to $3.52 trillion. In 2009 alone, overall federal spending rose 18%, or $536 billion. Throw in a $65 billion reduction in debt service costs due to low interest rates, and the overall spending increase was 22%.

In one year.”

CBO confirms that Democrats have taken federal spending to a new and higher plateau: 24.7% of GDP in 2009, 24.1% this year, and back to an estimated 24.3% in 2011. The modern historical average is about 20.5%, and less than that if you exclude the Reagan defense buildup of the 1980s that helped to win the Cold War and let Bill Clinton reduce defense spending to 3% of GDP in the 1990s. …
This means that one of every four dollars produced by the sweat of American private labor is now taxed and redistributed by 535 men and women in Congress. …
Compared to this gusher, Mr. Obama’s touted spending freeze for some domestic agencies is the politics of gesture. It would apply to only 17% of the budget, and these programs have already had a 22% increase in their annual appropriations in the past two years, and another 25% increase including stimulus.

Updated: Tax Credits = Social Engineering (Tax Talk)

Barack Obama, Democrats, Economy, Political Economy, Taxation

H. L. Mencken called elections “a sort of advance auction sale of stolen goods.” As he ramps-up for an election season, BO proves once again that he has perfected the art of robbing Peter to pay Paul. The president’s next gambit is “tax credits” for the middle class.

These are “subsidies disguised as tax cuts. In other words, they are spending in the form of direct transfers from the treasury to individuals, except that they are administered by the tax authorities rather than the agencies usually responsible for welfare.”

Social engineering is what tax credits are, as they target certain constituencies to the determinant of other, less politically powerful ones. Basically, “taxpayers can receive a raft of tax credits if they engage in various government-specified activities.”

You need very few brains to err on the side of growth and usher in, “lower tax rates for everybody.”

Update (Jan. 26): The familiar demand that I abandon a discussion on tax policy because I stand for abolishing the 16th, “The Number of The Beast,” is a position I’ve denounced again and again. This is what goes for libertarianism in many quarters; you sit on the fence, make nothing but tinny, tedious, purely theoretical arguments, and congratulate yourself on retaining your political purity. To repeat, this is nothing but sloth. It’s also boring, foolish and uppity without being superior.

Yes, taxation is immoral and naturally illicit. And yes, tax policy needs to be debated among the handful of intellectually curious, clever, engaged individuals, and yes, the fact that one wishes to see a return to natural justice does not preclude a pragmatic support for, say, a flat, low tax. Let the poor set the rate.

Updated: Hooray Hillary!

Economy, Hillary Clinton, IMMIGRATION

HILLARY CLINTON, SECRETARY OF STATE: “We are not going to be accepting into the United States Haitians who are attempting to make it to our shores. They will be interdicted. They will be repatriated.”

You most certainly never heard the aforementioned from “W,” whose open-border policies made Bill Clinton’s immigration enforcement look like Operation Wetback. Here’s Hillary on Haitian immigration:

“The United States will enforce its own laws and repatriate any Haitians who illegally enter US territory while fleeing quake-hit Haiti, US Secretary of State Hillary Clinton said Thursday.

“Ordinary and regular immigration laws will apply going forward, which means we are not going to be accepting into the US Haitians who are attempting to make it to our shores,” Clinton told reporters.

“They will be interdicted, they will be repatriated,” the chief US diplomat said when asked what could be done to prevent Haitians from fleeing the country in the first place. [AFP]

Writes Roy Beck of NumbersUSA:

This kind of message is especially important after the Obama Administration offered TPS (Temporary Protected Status) to hundreds of thousands of Haitians who already are in the U.S. illegally. Otherwise, Haitians back in their own earthquake-ravaged country could easily assume that they also could get work permits and legal status if they could just manage to illegally enter the U.S.

The problem:

“Pres. Clinton and Pres. Bush — and now Pres. Obama — have repeatedly shown that they lack the will to ever end Temporary Protected Status. Once the status is given, it gets renewed over and over again, long after the original reason for it has passed. Unless we get a different kind of President than the last three, the TPS issuance this week is a de facto amnesty for the illegal aliens who will be allowed to live and work here the rest of their lives.”

Just in case Haitians jump on boats, LT. CHRIS O’NEILL of the U.S. COAST GUARD has warned: “It’s very, very dangerous and dynamic. And I can’t stress enough how important it is for people in Haiti to stay home, stay safe, help rebuild your country. And we’ll help you rebuild it.”

Things must be bad when even the US coastguard has an urgent and acute sense of the economic desperation in … America.

Update (Jan. 25): Settle down naysayers. Hillary gets full praise for merely speaking the unspeakable; for saying what no other pol would dare say in the face of suffering in an undeveloped country. Underplay what Hilary said, and you underestimate or misunderstand the immigration taboos we immigration patriots face.

Updated: Obama Goes Getto On America (But Easy On Himself)

Barack Obama, Bush, Democrats, Healthcare, Politics, Republicans

HERE’S “what this bum thinks of America,” writes Larry Auster, and manages to capture the cretinous petulance of Obama’s response, at a town hall meeting in Ohio today, to the building resentment:

“… he is still ensconced in his little world, his little gnostic bubble, where reality is supposed to bend to his desires no matter how harmful and irrational they may be, and if it doesn’t, it’s other people’s fault–people who do nasty, ‘ugly’ things, people who ‘scare the bejesus out of everybody,’ people who ‘buzz-sawed’ his beautiful health care bill to smithereens in Massachusetts. Yes, that’s right, he described a peaceful, lawful election in the state of Massachusetts as a ‘buzz saw.’ That’s what this bum thinks of America. All of which is a good sign. It suggests Obama will not adjust to reality, will not ‘grow’ in response to defeat, but will remain a bitter, hostile alien in this country, clinging to his health care bill and his cap and trade, which in turn will make it more and more difficult for him to impose his will on us in any area, and will also make it a reasonable possibility that he will be a one-term messiah. Which is sort of a contradiction in terms, isn’t it?”

Auster rounds off with a Mark Steyn quip (“I’ve never denied that Steyn has his moments,” Larry writes. Ditto.) in response to “Obama’s astounding remark that the reason the voters of Massachusetts chose Republican Scott Brown over Democrat Martha Coakley and thus destroyed the Democratic Party’s revolutionary legislative agenda was that they were angry at eight years of Republican President Bush”:

Presumably, the president isn’t stupid enough actually to believe what he said. But it’s dispiriting to discover he’s stupid enough to think we’re stupid enough to believe it.

Update (Jan. 23): Here is the prepared text of Obama’s “jobs” speech in Elyria, Ohio.”

Précis:

* BO sets the scene by blaming the big banks for this latest bubble created by loose monetary policy and compounded by decades of affirmative-oriented lending policies imposed on banks by government legislation.

* Pats himself on the back for the Recovery Act, bailouts, and nationalization of The Big Three, and for single-handedly averting a Second Great Depression through delirious spending, and by designing functioning, efficient, fair markets (in Obama oratory: “creating the jobs of tomorrow”). Yes, command economics worked in the Soviet Union; it’s working in these United States. Amen, Bro.

* BO then bemoans rising prices. In other words inflation—the increase in the money supply promulgated by the government-owned Federal Reserve’s habit of mucking about with interest rates or plain printing paper. Fiddling with the money supply courtesy of the government-Fed syndicate—and for the purpose of funding, if clandestinely, Big O’s debt—that’s inflation. “The truth is that inflation is caused by government,” observed Ronald Reagan. “It’s caused by government spending more than it takes in, and it will go away just as soon as government stops doing that.”

* Throw into the mix dollops of class warfare and you have a pacified crowd. “[S]ome Americans made huge amounts of money,” blasted BO, “while many others pedaled faster and faster, only to find themselves stuck in the same place.”

Yes, I agree. Do read “Life In The Oink Sector” to find out whose ranks you need to join if you want your wages to rise continuously—up to 50% higher than the average salary out there—never have to fear downsizing; being fired, reprimanded, or worked to the bone, and to retire after 30 years of abusing your “clients” on an annual income of a $100,000. Hint: It’s not the private productive economy.

Remember Lilly Ledbetter (it’s in the speech)! In the little lady’s honor, as Barack reminds us, he unleashed on struggling American businesses armies of strong-arming (and buff-armed, no doubt) Girls Gone Wild, eager for their pound of flesh. Read about it in Barack Against the Boys.)

Shout out for the Obama-expanded SCHIP program, the entitlement plan known as the State Children’s Health Insurance Program.

More self-congratulations. Barack leaves.

I’m off to barf.