The old Perry Como song comes to mind thinking about all the debate concerning our debt problem, deficits, the overwhelming size and reach of the federal government, and all the problems associated, including bankruptcy, hyperinflation, deep depression, even economic Armageddon:
It's impossible, tell the sun to leave the sky, it's just impossible
It's impossible, ask a baby not to cry, it's just impossible
Of course, we cannot park there. Traditional American optimism will not allow it. Besides, parking there means certain failure. However, a sober assessment of the situation is not encouraging considering how stupidity and selfishness infects every dimension of public debate.
The moment we learn about preliminary recommendations from Obama’s bipartisan deficit reduction commission, we hear blanket condemnations from Pelosi & Co. So much for working across the aisle to save the country: “ . . . impossible, ask a baby not to cry . . . “
One serious, irrefutable fact is staring us straight in the face: unless we cut spending, increase revenue, pay our debts and balance the federal budget, America is going under.
Nobody is saying it flat out in public because nobody wants to create a panic, but those in the know have been warning us for years, and in the last 22 months, the problem has become much, much worse.
Debt ballooned 50% in the Bush years. It is much worse under Obama.
The nation’s bookkeeper, David Walker, warned us three years ago the nation is bankrupt, but nobody listened, and no one in Washington seems to be listening today. On Pelosi’s watch ourdebt has increased $5 Trillion, near term. Looking out a few decades in consideration of entitlement spending promises made by the government we face a $188.8 Trillion debt. We have sold our own children and grandchildren to feed our own flesh, the height of selfishness.
Every man, woman and child in the U.S. is in debt several hundred thousand dollars thanks to federal spending and waste and fraud and abuse. In terms of long term entitlement obligations, every taxpayer must pony up $1 Million in today’s dollars at today’s level of debt. It is beyond crisis, and the tensions rippling out internationally are obvious, promising wars, and rumors of wars.
There is no question about it: we must radically cut spending, pay off debt and increase revenue, not by increasing taxes, which kills economic recovery, but by firing up the engine of capitalism and opening markets, in part, by reducing regulation and encouraging investment.
All that requires strong leadership with the right vision and the correct economic philosophy: leadership with the political courage to make the tough calls. At present, we do not have that kind of leadership in the Executive Branch. In fact, we have the opposite kind of leadership.
Leftists work against sober problem solving at every turn, aggravating the situation with hyperbolic rhetoric, condemnations, name-calling and every kind of slash and burn political manipulation. They insist on more regulation, more taxation, more spending, more debt, more entitlements and more economic malaise, for one simple reason: more control.
The selfish motivations of the power mad will never come to the table to contribute to solutions. Consequently, any solution to this economic and fiscal crisis cannot, and will not, involve the participation or contributions from people like Obama, Pelosi, Reid, Schumer, Frank or Hoyer.
Three things must happen within the next couple years, or we are looking at destruction on a scale no one can even imagine today. Think about no money, food riots, an energy crisis beyond anything ever experienced, and global chaos even Hollywood has yet to dramatize.
What is required?
Number One: strong leadership must step up. Without visionary leadership with the courage to make the tough changes required, nothing positive will happen. Strong fiscal conservatism in the legislative and executive branches is absolutely required.
Number Two: simplicity. Any plan to balance the budget and reduce public debt while truly stimulating the economy must be as straightforward and simple as possible. Let the process get bogged down with lawyers and bureaucrats and politicians, and the slog will destroy any meaningful progress.
Number Three: call on all the people to sacrifice, especially Boomers. The biggest drag on the system comes from Social Security, Medicare and the Prescription Drug Program. Government spending in these areas is killing us. There are also areas in defense spending we can cut. Entire bureaucracies, such as the departments of Energy and Education, should be eradicated. The American people must be willing to sacrifice and suffer if we are to collectively attack this financial problem. Our survival depends on it.
So far, the only leader who has the knowledge and courage to tell it like it is with depth of understanding and clarity is Newt Gingrich. He may not be Mr. Mediagenic. He may not be electable.
He is however the most learned, articulate, knowledgeable and forthright individual engaged in the present debate. Here is his proposal, and it is far better than anything coming out of the President’s commission thus far:
1. Payroll Tax Stimulus. With a temporary new tax credit to offset 50% of the payroll tax, every small business would have more money, and all Americans would take home more of what they earn.
2. Real Middle-Income Tax Relief. Reduce the marginal tax rate of 25% down to 15%, in effect establishing a flat-rate tax of 15% for close to 9 out of 10 American workers.
3. Reduce the Business Tax Rate. Match Ireland’s rate of 12.5% to keep more jobs in America.
4. Homeowner’s Assistance. Provide tax credit incentives to responsible home buyers so they can keep their homes.
5. Control Spending So We Can Move to a Balanced Budget. This begins with eliminating congressional earmarks and wasteful pork-barrel spending.
6. No State Aid Without Protection From Fraud. Require state governments to adopt anti-fraud and anti-theft policies before giving them more money.
7. More American Energy Now. Explore for more American oil and gas and invest in affordable energy for the future, including clean coal, ethanol, nuclear power and renewable fuels.
8. Abolish Taxes on Capital Gains. Match China, Singapore and many other competitors. More investment in America means more jobs in America.
9. Protect the Rights of American Workers. We must protect a worker’s right to decide by secret ballot whether to join a union, and the worker’s right to freely negotiate. Forced unionism will kill jobs in America at a time when we can’t afford to lose them.
10. Replace Sarbanes-Oxley. This failed law is crippling entrepreneurial startups. Replace it with affordable rules that help create jobs, not destroy them.
11. Abolish the Death Tax. Americans should work for their families, not for Washington.
12. Invest in Energy and Transportation Infrastructure. This includes a new, expanded electric power grid and a 21st Century air traffic control system that will reduce delays in air travel and save passengers, employees and airlines billions of dollars per year.
(No doubt Gingrich and others would be much more aggressive today recommending cuts in spending and a repeal of the Alternative Minimum Tax as well.)
We cannot count on help from those who refuse to sacrifice. We cannot expect help from those who refuse to cooperate. We cannot rely on the selfish politicians who only look at getting re-elected. There is no hope coming from the rabid Left which is focused on vicious attacks and denunciations all to the exclusion of any realistic problem-solving.
Only the courage of The People willing to work and sacrifice in partnership with visionary leaders will turn this crisis around. The next three years will tell which way it will go.
The Greatest Generation won WWII by coming together with a fervent sense of patriotic mission. The Greatest Generation, acquainted with suffering thanks to the Great Depression, stepped up, and through tremendous work and sacrifice, saved the world.
It is time once again for that kind of greatness.
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For those who believe Republicans do not offer specific proposals:
A Majority to Limit Government & Create Jobs
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