Debate the Bigger Issue

Instead of playing a game of political chicken with Obama, the Republican leadership should grab the high ground and focus everyone’s attention on the big picture. Everyone knows the debt ceiling must be raised. The question is not whether it will peak at 15 or 16 trillion dollars-the cold reality is that it will be a much higher number. The GOP should not get trapped into negotiating around such a puny issue. They need to move the focus on the bigger, more important concerns. The health of the economy and the debt rating hinge on Washington’s ability to change the trajectory of government spending and the debt it generates. Under Obama, spending as a share of GDP has jumped 25% while revenues have dropped, as they always do, due to the deep recession. Current debt is virtually irrelevant when compared to the unfunded entitlement liabilities that exceed $100 TRILLION.

The only way to solve this problem, which was decades in the making, is with a long-term plan that will transcend the 2 year election cycle. The GOP needs to reject the static scoring that puts a price tag on lower tax rates. The Laffer curve demonstrates that the presumed correlations do not exist. Alan Reynolds recently authored a piece in the Wall Street Journal accompanied by a chart showing income tax revenue as a share of GDP as the top marginal rate was lowered from 91% to 28%. Revenues rose as a raw number and a percentage. (More on that here: LINK)

The silver lining in the current economic cloud is that the Democrats with their super majorities were able to give their economic theories a thorough test. The failure is also thorough and evident. The so-called “stimulus” was neither targeted nor temporary. The Democrats are trying to use it as a new baseline for budgeting. The crown for the party of big spending is properly placed once again. The GOP needs to claim victory and move on. The 2010 mid-term elections are their mandate.

This is our moment. We must seize it. Promises have been made for decades that can never be kept. The age of unfunded liabilities is over. True entitlement reform must include a transition to private accounts so that congress can never again spend what should have been in the mythical trust fund. Our health care is our responsibility. It is not a right-it is a basic necessity, just like food and housing-other areas where government meddling wreaks havoc. Insurance is a risk management tool that adds a layer of bureaucracy and the associated costs. It should be used sparingly, and will be, once it is untangled from the insane tax code.

A vibrant, growing economy can eventually dwarf the debt figures and then we can pay it off entirely. A rational energy policy focused on domestic drilling and proven technologies must replace the “green” fantasy. Real jobs will produce real revenue and help slay the inflation dragon that has already brought us $4 gas. Gains in national security are achieved as well. This message, this vision, can clarify the ongoing debate and serve as a national platform for the 2012 elections.

Pat Duggan

U.S. is Certain to Default

-Not on the debt that has been issued in U.S. Treasury bonds-but on the promises they made to you dear tax payer, when they deducted from your paycheck for Social Security and Medicare.

It wasn’t so much a promise as a lie-and we eagerly believed it. Now that we know it’s lie we need to snap out of our collective trance and deal with it.

This requires leadership; a quality sadly lacking in Washington (and Illinois and Chicago for local readers).

Paul Ryan comes closest right now in terms of delivering the bad news. There’s a lot of “shoot the messenger” and way too little support from his team.

Pat Duggan

Published in: on June 15, 2011 at 1:43 pm  Comments (2)  
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No Room For A View

The View is a truly idiotic TV show. Uninformed yet highly opinionated liberal hostesses regularly attempt to tackle contentious issues. Journalistic dinosaur Barbara Walters stood by as raving lunatic Rosie O’Donnell spouted deranged 9/11 conspiracy theories. The morning time slot is not exactly the network news hour but ABC lost any last shred of credibility by allowing that to go on as long as they did. Why anyone cares what Joy Behar thinks about anything is beyond me. She recently attacked Congresswoman Michele Bachman for side-stepping the Carl Paladino gay parade non-issue, and taking a principled stand against the out-of-control government S-Chip program. She said Bachmann was “against children”, repeatedly, on her Headline News show. Michele Bachmann has raised 5 children of her own and 23 foster children. Joy Behar is ignorant and nasty. See for yourself: LINK

I am not a big fan of Bill O’Reilly. He is best described as a “social conservative”, but he is astoundingly economically ignorant. He sort of admits that on air but that doesn’t stop him from attacking oil companies and insurance companies in the midst of crises clearly caused by government induced price distortions. I watch his show for the guests. Watching John Stossel educate him on free market economics is great fun. The pompous O’Reilly is so self-absorbed he doesn’t see how foolish he looks.

On Thursday the shameless, self-promoting Factor host went on the view to promote his latest book. I’ll give him credit for taking on the 4 shrews single-handedly. Token conservative Elisabeth Hasslebeck is barely allowed to talk. They surely delight in her being blonde-allowing viewers to stereotype and dismiss her. The show went downhill quickly.

When Bill dared to mention that the 9/11 murders were committed by Muslims, and that building a Muslim mosque nearby was “legal but insensitive” Joy and Whoopi stormed off the set. Sorry girls, these are facts.

That is the only facet of this brouhaha worth pondering: When confronted with facts that contradict their view liberals throw tantrums.

Many of us have experienced variations of this. Liberals live in a state of perpetual cognitive dissonance, or simultaneously holding opposing beliefs. This creates a state of discomfort when facts invade their force field. The View shrews can ignore Elizabeth, but O’Reilly gets in their face.

This is occurring on a breathtakingly large scale in modern politics. FDR’s twisted version of Keynesian economics (Keynes thought 25% taxation was about the limit the economy could handle) failed miserably with the depression deepening and dragging on for a decade-yet modern liberals insist we can spend our way out of trouble. We’ve lost 2.5 million jobs since Obama’s inauguration yet they claim they “saved or created” 3 million. Social Security is bankrupt and the trust fund is a myth. Something’s gotta give and polls indicate it’s America’s willingness to tolerate this nonsense.

For more on that Keynes claim go here: LINK

What we are witnessing on “The View” and various biased media shows masquerading as news is nothing less than a blatant attempt to re-write history. These people live in a bubble that allows them to think of Fidel Castro as the beneficent leader of a workers’ paradise. This is one bubble that sorely needs to be burst. The internet and Fox News are helping to make that a reality. What we need are politicians that are brave enough to step on that third rail of politics and call Social Security what it is: A government mandated pyramid scheme. Let’s make sure they don’t shoot the messenger.

Pat Duggan

Shameless Liars

Social Security and Medicare are nothing but pyramid schemes forced on us by the government. This use of force only guaranteed one thing: that with the largest participation in history this “Ponzi” scheme would be the biggest and longest lasting. Some of us have been shouting this to a deaf public for decades. Others were blissfully ignorant. A third group had / has the audacity to defend it, insisting we’ve mischaracterized this crime. The day of reckoning is fast approaching. Those that see that they’ve been swindled are growing in numbers. Yet charlatans persist. Read here: LINK

This clueless hack resorts to a favorite accounting trick of the socialist left: double counting of assets or insisting that one wing of the government issuing the other an IOU somehow creates an asset. Here’s a better explanation of the fraud: LINK

Are you angry yet?

Pat Duggan

Published in: on August 12, 2010 at 11:59 am  Leave a Comment  
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