Breaking down Senator Mark Pryor’s speech on debt ceiling (Part 3)

Mark Pryor’s support of the ultra liberal Obama is very clear in the video clip above. He voted for President Obama’s plan to nationalize healthcare and  Obama’s stimulus plan that wasted almost a trillion dollars. Now he is following President Obama down the path of raising taxes during the debt ceiling debate.

The Arkansas Times Blog reported on July 22, 2011:

Senator Mark Pryor on July 22  made the following statement on the Senate floor to encourage his colleagues to end the budget gimmicks and move forward with a comprehensive debt-reduction plan as part of a debt ceiling solution. A portion of his statement is below:

Mr. President, Abraham Lincoln once said, “I am a firm believer in the people. If given the truth, they can be depended upon to meet any national crisis. The great point is to bring them the real facts.”

We need to bring people the facts about our nation’s debt. People in my state see through the games being played in Washington. They want solutions, courage and leadership — the kind that puts us on a more secure fiscal path for the future.

Mr. Bryant of Hot Springs Village, Arkansas writes: “We know we have to increase the debt ceiling so let’s get serious about finding a solution….Why is this a problem for our politicians? The public expects responsible leadership not the demagoguery we are getting from both sides of the aisle.”

So here are the facts. For over 230 years, the United States government has honored its obligations. Even in the face of a Civil War, two World Wars and the Depression, America has paid its bills. Yet, now we stand on the brink of tarnishing the full faith and credit of the United States. And we stand here because Congress has failed to bring the American people the real facts. The easiest thing for a politician to do is to say they are for lower taxes and increased spending. This mind-set has rung up a $14.2 trillion debt. We now borrow 41 cents of every dollar we spend.

Now, under this debt, combined with the theatrics playing out in the House and Senate, the unthinkable could happen. The 80 million bills the federal government pays could come to a screeching halt. That means millions of seniors may not receive their Social Security checks in the mail, troops may not receive paychecks, Medicare patients could be denied care and the stock market could significantly drop.

Moreover, credit rating agencies have warned us that we will likely lose our AAA credit rating without immediate action. Interest rates would permanently rise, piling on additional costs for families. The cost of owning a home, buying food, filling a gas tank, sending kids to college and buying a car will become even more expensive.

There’s one more real fact I want to highlight. A default adds heavily to our deficit. For every 1 percent increase in the interest rates we pay, it adds $1.3 trillion to the debt. It is no wonder Chairman of the Joint Chiefs of Staff last summer said, “Our national debt is our biggest national security threat.

_____________________________

Mark Pryor has made several miscalculations concerning the debt ceiling problem. He thinks that the nationalizing of our healthcare will not affect the future deficits, and he doesn’t want to take a serious look at Medicare reform. Finally, although he says a lot about how serious the national debt is, he does not want to propose any serious cuts to federal spending. WHY NOT ELIMINATE THE DEPT OF EDUCATION? WOULDN’T THAT BE A BIG SAVINGS TO THE GOVERNMENT? JIMMY CARTER CREATED THAT AGENCY AND IT HAS DONE NOTHING TO HELP EDUCATION IMPROVE SINCE THEN DESPITE THE MASSIVE AMOUNT OF MONEY WE HAVE THROWN ITS WAY!!!!

Below I have put a portion of the article Principles for Lasting Federal Budget Reforms” by Jeffrey A. Miron:

Jeffrey A. Miron is senior lecturer and director of undergraduate studies at Harvard University and senior fellow at the Cato Institute. Miron is the author of Libertarianism, from A to Z.

Added to cato.org on July 22, 2011

This article appeared in The Philadelphia Inquireron July 22, 2011. 

As Democrats and Republicans debate the U.S. debt situation, both sides seem more concerned about pandering to their respective bases than reining in the debt. Worse, much of the discussion addresses only the debt per se, not the broader question of what policies are good for the economy. These conditions are likely to yield only cosmetic fixes, some of which will make things worse over the long haul.

The debt problem is substantial and pressing: Congressional Budget Office projections show America’s debt is exploding. Expenditures are growing much faster than the gross domestic product and tax revenues possibly could. Under the CBO’s most plausible projections, the debt would reach 109 percent of GDP by 2023, and 190 percent of GDP by 2035. This is not a problem we can ignore or address with minor adjustments.

The federal budget includes numerous programs that ought to be eliminated regardless of the deficit.

Raising tax rates is a bad idea: By reducing the income of households and the profits of businesses, higher tax rates discourage consumption and investment, slowing the economy in the short run. By reducing hiring, savings, and investment, they reduce economic growth in the long run. And higher tax rates are undermined by tax evasion and avoidance, making them an inefficient way to raise revenues.

Reducing tax “expenditures” is a good idea: When the tax code favors particular kinds of consumption or specific industries, it reduces productivity by distorting market forces, just as government spending can. Those who support economic efficiency should therefore oppose such tax expenditures, regardless of how they affect revenue or whether they are paired with reductions in tax rates. Important examples include the mortgage-interest deduction, special tax treatment of employer-paid health insurance premiums, and tax breaks for both conventional and green energy.

Health care is the greatest driver of expenses: The CBO’s analysis also indicates that rapidly increasing expenditures on Medicare, Medicaid, and insurance subsidies under Obamacare are the most important factors behind the exploding debt. Serious attempts to control the debt must reduce these programs’ growth rates.

Higher deductibles reduce health spending: Slowing the growth of health expenditures is crucial, but not all fixes are created equal. Price controls and rationing, for example, generate huge inefficiencies.

Higher deductibles are a better approach. They not only reduce spending directly; they also encourage consumers to economize and comparison shop, generating competition, efficiency, and lower costs. This moves Medicare toward insuring against catastrophic costs and away from reimbursing all expenses.

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Comments

  • James Fry 103 Medina Way, Hot Springs Village, AR 71909  On July 26, 2011 at 3:06 pm

    President Obama is a socialist and his only interest at this time is to raise money for his possible re-election as President. His policies have cost thousands of job such as no drilling in The Gulf, Alaska and Western States. He bribed unions and businesses by giving them shares of 500 million to get their vote for Obama Care. The NRLB is fighting Boeing about opening a plant in SC to build the 787. Leave Boeing alone and let them run their business. Regulation is hurting hiring. The biggest tax increase in our history is Obama Care.

    The Liberals and Conservatives arguments are hurting the country and both should do what is best for the country and not what is best for their views and their parties. 41% of the people do not pay imcome taxes and there are few if any loopholes for the so called wealthy. Everyone should pay taxes because everyone derives benefits. We should have a balanced budget and if that cannot be accomplished with the current administration and congress, everyone should resign. Too many politicians are following the party lines. What is going on now is that the President and Congress are playing politics and bringing down the country.

    James Fry

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