Spend, Spend & Grow The Government

Has  Barack Obama suddenly had an epiphany?  He has started giving lip service to deficit reduction.  He never seemed to care much about deficits until he debt might matter in his re-election campaign.

In his first three budgets, Obama and the Democrats borrowed nearly $5 trillion. Currently, the government is borrowing about 45% of everything that it spends. Obama's projected 10-year plan would add nearly $10 trillion to existing U.S. debt.

This spring Obama proposed the largest annual deficit in U.S. peacetime history, which is why his $3.7 trillion budget for 2012 was rejected in the Senate by a 97-0 vote.

In Obama's worldview there are advantages to deficits that explain his fondness for unprecedented borrowing. In Keynesian terms, massive government red ink is supposed to foster economic prosperity by creating goods and services that a purportedly less efficient private sector cannot.

The Obama administration has added an additional 100,000 federal jobs and expanded food stamps to nearly 50 million recipients -- and in the process enlarged the pool of potentially grateful constituents. This belief in the superior wisdom of the state explains why almost all the Cabinet secretaries in the Obama administration came out of state or federal government, not from private enterprise.

Massive deficits not only empower more federal hiring and entitlements, but at some point lead to higher taxes. This gorge-the-beast notion is the flip-side of the Reagan-era idea of "starving the beast" of big government by cutting federal revenue through reduced tax rates.

Higher taxes to Obama are not bad if they serve to redistribute income from the affluent to the less well off -- a sort of "spread the wealth" government way of addressing the supposedly inherent unfairness of private-sector compensation.

Obama now is giving lip service to reducing the deficit.  It is only lip service.  He wants the federal government to spend even more borrowed money and tax the job creators at a higher rate.  His jobs speech and rhetoric now is spend, spend, and grow the government.  He wants to help the unions at the expense of most Americans.

There is no current example suggesting Keynesian big deficit spending leads to national prosperity. The unsustainable debts of Greece, Ireland, Italy, Portugal and Spain have nearly wrecked the European Union. Do you consider a fiscally prudent Texas or Utah to be a better job creator than debt-ridden blue states such as California, Illinois and New York?

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