The Daily Hatch

The video clip is really an answer to Elwood from the Arkansas Times comment section that answers his statement that deficits don’t matter and we should not be worried about our continued out of control spending. Here are Elwood’s own words:

If you’ve heard enough “THE SKY IS FALLING” here’s some sensible writing on the subject
“We’re broke! We’re broke!” Speaker John Boehner said on Sunday. “We’re broke in this state,” Gov. Scott Walker of Wisconsin said a few days ago. “New Jersey’s broke,” Gov. Chris Christie has said repeatedly. The United States faces a “looming bankruptcy,” Charles Koch, the billionaire industrialist, wrote in The Wall Street Journal on Tuesday.
It’s all obfuscating nonsense, of course, a scare tactic employed for political ends. A country with a deficit is not necessarily any more “broke” than a family with a mortgage or a college loan.

I have started a new series today called “The Real Cause of the Debt.” Below is an excellent article by Heritage Senior Fellow J.D. Foster:

January 4th, 2010
Interest. Or to be more precise, interest payments. That, Heritage Senior Fellow J.D. Foster explains, is the biggest reason why Americans should be very concerned with the trillions of dollars in debt our federal government is piling up in Washington. Watch:And the situation is only going to get worse under President Barack Obamas budget. Heritage Foundation fellow Brian Riedl reports: Federal spending (which has remained around 20 percent of economy since the 1950s) would surpass 28 percent of economy by 2019. Federal spending per household would rise from $25,000 per household in 2008 to more than $37,000 per household by 2019. This spending would drive a permanent, unprecedented increase in the national debt. After borrowing just under $6 trillion from 1789 through 2008 (plus nearly $2 trillion in 2009), Washington would borrow $13 trillion over the next decadenearly $100,000 for every household. By 2019, annual budget deficits would approach $2 trillion and push the public debt to nearly 100 percent of the economy. Merely paying the interest on this debt would soon cost taxpayers $1 trillion annually, and spending and deficits would continue to rise.