Sadly last night America voted to run up debt even more by electing two liberals to senate in Georgia! This article below shows how our Founders restrained spending and we are not restraining it anymore!!!!!!

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 Sadly last night the Democrats won control of Senate!

Sadly last night America voted to run up debt even more by electing two liberals to senate in Georgia!!!!! This article below shows how our Founders restrained spending and we are not restraining it anymore!!!!!!

By the Numbers: America’s Unfortunate Fiscal Evolution from Madisonian Constitutionalism to Wilsonian Statism

I’m a big fan of fiscal data.

In part this is because I’m a policy wonk, but I also like budget numbers because they generally provide strong evidence for my philosophical belief in small government and spending restraint.

For instance, I enjoy sharing my table showing nations that have experienced great success with multi-year limits on spending growth, particularly since I enjoy putting my leftist friends in an uncomfortable position by asking them for a similar list of countries that have made progress by raising taxes (hint: that’s called the null set).

Given my affinity for budget data, I was excited to learn that the Joint Economic Committee (JEC) just released “An Economic History of Federal Spending and Debt.”

This new publication is filled with fiscal information starting in the late 1700s.

To give you an indication, check out this chart which, in one fell swoop, provides more than 200 years of data on spending, revenue, and debt, along with information on major wars and economic dislocations.

Since that’s an intimidating amount of information, I thought it might be a good idea to break out the most important set of numbers in that chart.

But I warn you that I’m not about to share good news. This chart shows how peacetime federal spending dramatically expanded during the 20th century.

Since I’ve already decided that data on dependency in Denmark was the most depressing powerpoint slide in the world, I guess we’ll call this the most tragic chart in the world.

Especially since it symbolizes a very unfortunate change in the attitude about the proper role of the federal government.

A progressive philosophical shift in federal spending began under President Woodrow Wilson. …George Will—writing on Wilson’s underlying philosophy—succinctly contrasted Wilson with James Madison by noting, “Wilsonian government, meaning (in Wilson’s words) government with ‘unstinted power,’ is hostile to Madison’s Constitution, which, Madison said, obliges government ‘to control itself.’”

In other words, the left decided that government was a force for progress rather than a threat to liberty, so they wanted to undermine the Constitution’s limits on the federal government.

And once the Supreme Court acquiesced to this perversion of the Constitution’s clear intent, any limits of federal power were swept away (evinced most recently by John Roberts’ tortured Obamacare decision).

And if you want to feel even sadder, check out the projections showing that America will become Greece in the absence of genuine entitlement reform.

Here’s a table from the JEC report that shows how bad attitudes, bad jurisprudence, and bad policy have led to a dramatic expansion in the burden of government spending. The most important column, which I’ve circled, shows that we used to have a very small federal government that consumed, on average, less than 3 percent of economic output. But now we have a Leviathan that diverts more than 20 percent of GDP to Washington programs.

The report isn’t just numbers. There’s also some very useful analysis.

For instance, it notes that FDR’s New Deal did not work (as I’ve repeatedly explained, though it also should have acknowledged that Hoover made the same mistakes).

On balance, empirical research provides little support for the contention that President Franklin D. Roosevelt’s Keynesian policies helped to pull the United States out of the Great Depression.

It also makes important points about the economic impact of government spending.

While more spending and a bigger federal government can mean more federal jobs, these jobs come at the expense of private sector resources, meaning fewer private sector jobs and lost economic opportunities. …there is an inverse relationship between federal spending and private payroll employment.

And it echoes arguments that I’ve made about the progress that was achieved during the Clinton years.

…though spending increased in real dollar terms during this period, as a percent of the economy, spending actually declined. In FY1995, non-interest mandatory spending equaled 9.75 percent of GDP and discretionary spending equaled 7.19 percent of GDP. In spite of the spending increases, by FY2001, mandatory spending amounted to only 9.56 percent of GDP and discretionary spending amounted to only 6.16 percent of GDP.

Perhaps most important, the study endorses Mitchell’s Golden Rule!

…a politically viable path to a balanced budget and fiscal stability: Restrain the growth in federal spending below the rate of economic growth, and a sustainable fiscal environment will follow.

Last but not least, it endorses a spending cap modeled after the Swiss Debt Brake.

The ideal base for a spending cap would be similar to a GDP-cap, but it would provide greater spending restraint in economic booms and greater flexibility in economic downturns. Fortunately, such a measurement, which helps to smooth the business cycle, does exist: Potential GDP. …basing a spending cap on potential GDP is very helpful for budgeting purposes, as it creates a more predictable budget path over an extended period of time.

There is a lot of additional information in the JEC report, so if you have any interest in America’s fiscal history, it’s worth your time to read the whole thing.

P.S. Other developed nations basically have made the same fiscal mistake as the United States. Nations in Western Europe and Japan also used to have very small governments. Once the welfare state began, however, economic liberty morphed into bloated welfare states.

OPEN LETTER

January 31, 2021

President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500

Dear Mr. President,

The federal government debt is growing so much that it is endangering us because if things keep going like they are now we will not have any money left for the national defense because we are so far in debt as a nation. We have been spending so much on our welfare state through food stamps and other programs that I am worrying that many of our citizens are becoming more dependent on government and in many cases they are losing their incentive to work hard because of the welfare trap the government has put in place. Other nations in Europe have gone down this road and we see what mess this has gotten them in. People really are losing their faith in big government and they want more liberty back. It seems to me we have to get back to the founding  principles that made our country great.  We also need to realize that a big government will encourage waste and corruptionThe recent scandals in our government have proved my point. In fact, the jokes you made at Ohio State about possibly auditing them are not so funny now that reality shows how the IRS was acting more like a monster out of control. Also raising taxes on the job creators is a very bad idea too. The Laffer Curve clearly demonstrates that when the tax rates are raised many individuals will move their investments to places where they will not get taxed as much.

______________________

17 Reasons the large national debt is a big deal!!!

We got to stop spending so much money and start paying off our national debt or the future of our children and grandchildren will be very sad indeed. Everyone knows that entitlement spending must be cut but it seems we are not brave enough to do it. I have contacted my Congressmen and Senators over and over but nothing is getting done!!! At least there are 66 conservative Republicans in the House that have stood up  and voted against raising the debt ceiling.

June 17, 2013 at 7:13 am

GO-Debt-Denial-rev_600

Remember the debt? That $17 trillion problem? Some in Washington seem to think it’s gone away.

The Washington Post reported that “the national debt is no longer growing out of control.” Lawmakers and liberal inside-the-Beltway organizations are floating the notion that it’s not a high priority any more.

We beg to differ, so we came up with 17 reasons that $17 trillion in debt is still a big, bad deal.

1. $53,769 – Your share of the national debt.  

As Washington continues to spend more than it can afford, every American will be on the hook for this massive debt burden.

willrogers_450

SHARE this graphic.

2. Personal income will be lower.

The skyrocketing debt could cause families to lose up to $11,000 on their income every year. That’s enough to send the kids to a state college or move to a nicer neighborhood.

3. Fewer jobs and lower salaries.

High government spending with no accountability eliminates opportunities for career advancement, paralyzes job creation, and lowers wages and salaries.

4. Higher interest rates.

Some families and businesses won’t be able to borrow money because of high interest rates on mortgages, car loans, and more – the dream of starting a business could be out of reach.

5. High debt and high spending won’t help the economy.

Journalists should check with both sides before committing pen to paper, especially those at respectable outlets like The Washington Post and The New York Times. A $17 trillion debt only hurts the economy.

6. What economic growth?

High-debt economies similar to America’s current state grew by one-third less  than their low-debt counterparts.

7. Eventually, someone has to pay the nation’s $17 trillion credit card bill, and Washington has nominated your family.

It’s wildly irresponsible to never reduce expenses, yet Washington continues to spend, refusing to acknowledge the repercussions.

>>>Watch this video to see how scary $17 trillion really is for your family.

8. Jeopardizes the stability of Medicare, Social Security, and Medicaid.

Millions of people depend on Medicare, Medicaid, and Social Security, but these programs are also the main drivers of the growing debt. Congress has yet to take the steps needed to make these programs affordable and sustainable to preserve benefits for those who need them the most.

9. Washington collects a lot, and then spends a ton. Where are your tax dollars going?

In 2012, Washington collected $2.4 trillion in taxes—more than $20,000 per household. But it wasn’t enough for Washington’s spending habits. The federal government actually spent $3.5 trillion.

>>> Reality check: See where your tax dollars really went.

10. Young people face a diminished future.

College students from all over the country got together in February at a “Millennial Meetup” to talk about how the national debt impacts their generation.

>>>Shorter version: They’re not happy. Watch now.

11. Without cutting spending and reducing the debt, big-government corruption and special interests only get bigger.

The national debt is an uphill battle in a city where politicians too often refuse to relinquish power, to the detriment of America.

12. Harmful effects are permanent.

Astronomical debt lowers incomes and well-being permanently, not just temporarily. A one-time major increase in government debt is typically a permanent addition, and the dragging effects on the economy are long-lasting.

13. The biggest threat to U.S. security.

Even President Obama’s former Chairman of the Joint Chiefs of Staff thinks so:

Mullen_450

SHARE this graphic.

14. Makes us more vulnerable to the next economic crisis.

According to the Congressional Budget Office’s 2012 Long-Term Budget Outlook, “growing federal debt also would increase the probability of a sudden fiscal crisis.”

15. Washington racked up $300 billion in more debt in less than four months.

Our nation is on a dangerous fiscal course, and it’s time for lawmakers to steer us out of the coming debt storm.

16. High debt makes America weaker.

Even Britain’s Liam Fox warns America: Fix the debt problem now, or suffer the consequences of less power on the world stage.

17. High debt crowds out the valuable functions of government.

By disregarding the limits on government in the Constitution, Congress thwarts the foundation of our freedoms.

Read the Morning Bell and more en español every day at Heritage Libertad.

_____________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733,

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