Budget Deficit

It has come that time again, not the beginning of the semester or elections, but something that is more predictable and common, the time to raise the allowance for our budget deficit. Congress is expecting to reach the debt limit by October 1, which currently stands at $8.95 trillion. The senate finance committee recently approved raising the limit by $850 Billion, which would allow the federal government to pay for operating expenses, debt obligations, and maintain confidence in the credit of the U.S. government. If this passes it will be the fifth time that the limit has been increased since bush took office in 2001. With the upcoming elections around the corner, the democrats are quick to point fingers at the war in Iraq, and tax breaks as the source for our spiraling debt. As young Americans who rely on the ability of the government to provide social security and medical care when we reach retirement age, it is essential that we vote into office a candidate who will protect our long term interests and rescue us from the mistakes of those in power. Dennis Cauchon of the USA Today said “Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.” When the Financial Accounting Standards Board considered requiring the federal government to adopt accounting rules used by corporation, which take into account future liabilities, the white house opposed on grounds that social security and medicare are not true liabilities as they can be cut at any time. Really? Maybe we should consider cutting paying those taxes until we know we are going to receive the benefits.

We all agree that; the government is a massive inefficient bureaucracy, that this behemoth should stay out of making every decision for us (nor does it have any right to), and that we live in an age where money equals power. Yet no viable candidate addresses the government’s ability to spend at will, to grow without restraint, and to increasingly add additional duties and responsibilities that violate our individual freedoms. Hillary’s plan to provide universal healthcare is estimated to cost $110 billion pre year, this is just the tip of the spending iceberg

• In 1969 $65 million was appropriated for the drug war
• In 1982, the Reagan administration spent $1.65 billion
• In 2000, the Clinton administration spent $17.9 billion
• In 2002 and 2003, the Bush administration spent more than $18.8 billion and $19.2 billion
• In 1900, the average American household paid $1,500 a year in taxes in today’s dollars
• In 1950, that figure escalated to $7,000.
• In 1995, the average household paid $20,000.





The current devaluation of the dollar in comparison to the pound, euro, and yen are indications of the markets opinion of our government policies. The government needs more money to finance war, debt, operating and pet projects. This leads the federal government to turn to the federal reserve and treasury to increase money supply, which according to Milton Friedman leads to inflation. According to the Mises institute one dollar in 1946 is worth 11 cents today, the remaining 89 cents has been taxed by the increase in fiat money by the federal reserve. According to most economists the brunt of this devaluation is felt by the poor and elderly whose income is not tied to prices.

On September 20th the Canadian dollar traded equally to the U.S dollar for the first time in 30 years, this comes as no surprise to Alan Greenspan the former chairman of the federal reserve who said that Bush was never able to contain spending or veto bills that drove our nation deeper and deeper into debt. The financial crisis in the credit markets has not only called into question the bailout policy officially endorsed by the federal reserve. This policy is used to “lubricate” the market when facing crisis by providing liquidity in the form of dollars to wealthy holders of risky debt, allowing those who take large risks in return for personal gain to be rewarded, while hurting the poor with higher inflation and higher government debt.

Unfortunately for the future generations of working Americans, the burden of overspending looms large. This is a serious issue that needs to be addressed now, our government can not be allowed to bring this country down with its inefficiency, unaccountability, and "fix all" mentality. The free market has shown that organizations need to focus on their core competencies, build trust with their stakeholders, and create added value. Let us stop squabbling over republicans or democrats, and change the system, it is unjust and does not work. If my company was losing money, would simply changing the CEO do the trick if the product provides less value then its competitors. Why we as Americans simply sit back and let crooked, power hungry fools burn our hard earned dollars away never ceases amaze me.

Ron Paul is running on a platform based on the constitution, to replace the current notion that a president should run our lives, our economy, and our world. He opposes; military adventurism costing almost $1 trillion and causing the blowback effect, which is the negative feelings toward the U.S. caused by years of foreign intervention and military force. He opposes the federal reserve which causes drastic devaluation of our money, and transfers wealth from the poor and middle class to the rich. He opposes government power not inherently given by the constitution, such as the patriot act, internet regulation, and needless regulatory bodies that give more and more power to government
Ron Paul will eliminate the influence of corporate America on politics, the less things politicians’ control, the less beneficial they are to rich and powerful, resulting in freedom and prosperity for all.

“Even today, individual income taxes account for only approximately one-third of federal revenue. Eliminating one-third of the proposed 2007 budget would still leave federal spending at roughly $1.8 trillion – a sum greater than the budget just 6 years ago in 2000! Does anyone seriously believe we could not find ways to cut spending back to 2000 levels?”
Ron Paul