How’s This Direction Working For You?

How’s This Direction Working For You?

June 26, 2009

“Tonight is a great victory for the American people.  Today they voted for change and for the Democratic Party to the take the country in a new direction,” is what Nancy Pelosi said following the Congressional upset election in 2006.  Since that night, we’ve seen a lot of change but I’m not sure this was the direction we wanted to go.

Unemployment has more than doubled since the Democratic Party leadership has taken our country in a new direction–from 4.5% to 9.5%. 

They managed to convince President Bush back in October 2008 that a “bail-out” package of $700 billion was needed to prevent the economy for collapsing. Then eight days after the Obama administration took control, the Democratic Party leadership was able to pass a “stimulus package” of another $787 billion, mostly before anybody read it. But even with that spending, unemployment still continues to increase at an alarming rate.

You probably remember how during the last few years of the Bush administration, many people complained about our deficit spending. And deficit spending is bad, as each year’s deficit piles on to the collective national debt, which is now reported to exceed $11 trillion. That’s a difficult number to grasp, though we Americans are getting more used to such numbers. Here’s what that looks like: $11,000,000,000,000. That’s still hard to understand.

Okay, how about this, if you had $11 trillion in your mattress when Jesus was born in Bethlehem and then you spent $14 million every day until now, you’d still have over $730 billion left to spend. That’s a lot.

Of course, we should all know that the legislative branch controls the budget. The President is limited by the Constitution to merely suggesting and then either approving or vetoing the budget which Congress votes to approve. Thus, it directly affects the American tax-payers when Congress approves extreme spending. Here’s what has happened to the deficit since Pelosi and Reid took control of Congress.

Economics can be confusing to most of us, but as a historian the way I understand it is that they have a theory, which is based on the idea that if they can create enough deficit spending it will make the economy recover. Before we completely denigrate that theory, we should understand that it is supported by the statistics from the depression, World War II, and the years that followed the war.

America went into extreme debt in order to fight back fascism and the leftist oligarchies of Germany and Japan. Following the war, under the weight of all that debt the economy dipped and then recovered. However, the idea that the debt made the economy recover ignores the fact that just about anybody who could work, did work during that time. American factories spit out tanks, airplanes, beans, and bullets as fast as possible during the war and then transitioned to cars, trucks and washing machines after the war. While it wasn’t the smoothest process imaginable, I believe the recovery was sparked by productivity (along with the absence of war) and not by bail-outs, pay-offs, and unemployment.

This day, an outnumbered minority of our honorable representatives have been desperately trying to keep Pelosi’s majority from passing a huge national energy tax. The result of which is believed by some to raise electricity prices, increase gasoline prices, and ship American jobs overseas to countries like China and India. In the process it will create another cluster of agencies that will redistribute trillions of dollars that rightfully belong to working-class Americans.

As I write this article, the battle to stop Pelosi’s energy tax may already be lost. Either way you need to take notice as unemployment continues to rise, and deficit spending continues to dwarf anything done by previous administrations, and as your hard-earned dollars are increasingly taken from you to be given to those with their hands out so that you can remember how your Representatives in Congress have voted.

If all this looks good to you, then smile and be happy.

But if you think the government has over-stepped its constitutional limits–you’d better make sure you vote with your brain in 2010. Regardless of party affiliation, we need representatives in government who do the right things because we may soon discover that we really can dig a hole so deep that we can’t get out of it.

As far I have read, no nation has ever taxed and spent itself into prosperity.

It just makes sense.

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