Sunday, October 18, 2009

The State of the Union

These charts taken from Calafia Beach Pundit show the current Federal Budget situation.  By many measures this is the worst situation in the post WWII period, with tax collections as a % of GDP as low as they have ever been, and spending spiraling out of control.  The current year's deficit now exceed 11 % of GDP.

If these figures weren't bad enough, just examine the budget projections.

Chilling projections, absolutely chilling that anyone with a conscience would saddle their their constituents with this level of debt or the taxes to fund this debt.

The country needs some smart politicians to put these charts in front of the TV cameras, much like Ross Perot did as candidate for President with his infomercials, and help we the people see the country is on an unsustainable course, and a major reevaluation of the role of government in managing the economy is required. Entitlement programs are already the biggest budget problems, and it is irresponsible for the politicians to push forward with a major new entitlement program that would fundamentally expand the role of government in healthcare and put the taxpayers on the hook for trillions more in expenditures when spending is so far out of control.   In addition, embarking on a new set of energy taxes in the form of cap & trade, based on the dubious science of global warming, would only continue to weaken an already weak economy.  What's left of the Pokulus Bill should be shifted away from make-work projects, boondoggles, growing state and federal governments, and large scale income redistribution schemes to increased incentives for businesses to hire and invest.

The #1 message all citizens should send to Washington is that it is time to get our fiscal house in order and stop these insane levels of spending.  The country simply can't afford it.  We need the private sector to help us grow our way out of this mess; continued growth in government will only act like a boat anchor on the economy.

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