Unkind Benevolence Is Shorting America

The above graph brings to mind what many Americans have been asking - can the PIIGS (Portugal, Ireland, Italy, Greece, & Spain) financial crisis happen here?  Of course the answer is not only yes but it is already happening here - just look @ California & NJ to see that their finances are eerily like Greece's long before Greece was recognized as a problem. 

 

A little over a year ago, @ the request of a member of our group, I addressed this matter with a letter I wrote published in the Courier News - "Residents of NJ would be wise to learn from our similar fiscal problems that caused California's current notoriety & economic deterioration summarized as follows: 1) California's budget deficit has reached $42 billion, 2) 1.4 million productive people have out-migrated from California during the last 10 years, 3) unemployment is the 4th highest in the country, 4) California has the worst credit rating falling below Louisiana's, 5) the state has the second highest foreclosure rate, & 6) the governor is threatening to furlough over 20,000 state employees.  NJ is right behind California in all of these categories that are caused in both states by overspending in which government lives on borrowed money that ultimately must be repaid through higher taxes.   California has the highest rates for both sales tax & income tax in the nation & once again NJ is just a little lower in each category."

 

Look @ the slope of the above entitlements growth graph & you can see that you don't have to wait until 2052 before entitlements consume all of our revenue @ current historical tax rates before we have a problem.  The blue slope line moves closer to the red historical tax average line every year starting now.  As anyone who has ever attended one of Jim Bennett's FairTax seminars will ready recognize the graph does not include interest on the national debt - which will consume all of our revenues by 2040 by itself @ 2008 projected spending-revenue levels, such figures being prior to BO's current spending binge.

 

How unkind & cruel is it for our elected reps to let the entitlement benefit myth continue - until total collapse of the programs?  Equally how delusional are people who are counting on receiving advertised government benefits including those recently promised by the healthcare reform legislation.

 

For decades about three quarters of our federal budget has been for what is really "unkind benevolence" - turning Federalist Paper #45 upside down - "The powers delegated by the proposed Constitution to the federal government are few and defined."  With 10,000 baby boomers retiring each day the string is about to break & California is just the starting point - here in NJ everything that Governor Christie tries to do to bring fiscal responsibility is met with resistance.  Today our local library wanted Carol to sign a card saying that the governor should not cut library services - Christie can't win.  Would the majority prefer Corzine's spending?  I am afraid the answer may very well be "yes."

 

But ultimately, when life gets totally intolerable & even more of our money is confiscated, people will finally realize they have to take care of themselves.  BO's plan is to orchestrate the taxing of us into the oblivion of government dependence which results in no one having money to create wealth & the corresponding private sector jobs & dignity that come with wealth creation.  With getting a job the top priority of the millions of people who are unemployed or underemployed why does BO ignore this call for help & keep proposing raising taxes & concentrating on comprehensive immigration reform, Cap & Trade, & new Wall Street regulations if this was not his plan? 

 

Speaking of Wall Street regulations - Goldman Sachs is on the hot seat of the hypocritically pious Senate's Permanent Subcommittee On Investigations for in essence shorting housing securities.  Look @ the above graph - isn't shorting America's treasury securities even a more obvious bet now than shorting housing was a few years ago?

A Graphic Example Of What We Face

As most of you know, there will be a special election in the 12th Congressional District of Pennsylvania on May 18, 2010 for the seat formerly held by the late John Murtha. Here is an attack ad that is a graphic example of the distortions candidates who endorse the FairTax face. The ad is being run by the Democratic Congressional Campaign Committee attacking Candidate Tim Burns for his support of the FairTax.

The text of the attack ad is:

"Southwestern Pennsylvania is hurting, but millionaire Tim Burns would make things even worse. Burns supports putting a 23% national sales tax on just about everything we buy. Groceries: 23% more. Gas: 23% more. Burns even wants to raise taxes on medicine. We can't afford to pay 23% more. We can't afford Tim Burns. The Democratic Congressional Campaign Committee is responsible for the content of this advertising."

That ad represents the very worst in American politics but there is something we can do to fight back in this case. There are two newspapers in PA's 12th district. Click on each of the following links to write to the The Observer-Reporter & The Pittsburgh Post Gazette to set the record straight. To replace Murtha with a FairTax supporter is something the statists cannot tolerate while simultaneously for us it is a goal so worthy to achieve for America.

Below is my letter sent to both links:

I listened to the despicable purposely misleading DCCC add re the 23% national sales tax. Tim Burns is an advocate of the FairTax - a nonpartisan proposal that replaces all federal income & payroll taxes with a progressive tax on consumption (national retail sales tax) that includes a cash prebate that ensures no American pays federal taxes on their spending for essential goods & services like groceries, gas, & medicine. The FairTax is the biggest transfer of power from the politicians to the people since the founding of this country & that is why the DCCC lies to their constituents wanting to keep all of them down while their elites stay in power. Wake up America - the answer to unshackle America's economy & restore the atmosphere for job creation is the FairTax.

Response - An Appeal For Insight

Thanks to everyone who responded to the four excellent questions that make up the subject appeal for insight.  Carol summed up our mess in America by saying "its a puzzlement that these questions have to be asked."  I have posted 12 of the responses that add something to the discussion on ReturnToExcellence.net - go to the April 23 posting on the blog & click on "comments" @ the end of the posting.  Check again in a few days because I believe more will be coming.  I am just sorry that we can't all get together to discuss the Q & A in person.  My own personal response is below.  Thanks again to the questioner for thinking of the questions & to the responders - I truly appreciate the time you spent answering these four important questions that can only help preserve America for ourselves & our Posterity.

 

1.  What can we do to re-limit government after decades in which restraint has been cast off? 

 

Government spending has been expanding for years as we move down the stages of Death Of Democracy - America is currently in the Apathy to Dependence stage.  People who let their patriotism be known @ Tea Parties & Town Hall meetings are our last line of defense - they have inspired a much larger than normal number of people to run for the first time ever in primaries against entrenched politicians from both major parties.   

 

To re-limit government we have to find these new politicians & support, work, & vote for them after we determine they are for real.  The great SC Senator Jim DeMint would rather have 30 senators like himself than 70 like Specter - me too.  Senator DeMint's approach is "I'm @ the point where it doesn't matter if we win if we don't believe in anything.  There is no need to nursemaid somebody to the general election if they're just going to come up here & vote like the Democrats."  You can call Senator DeMint to get a list of candidates he is supporting - they are quite a bit different from the standard Republican Party line. 

 

Also re-check this blog starting December 8, 2009 for a series of postings on "How To Vote The Bums Out."  The FairTax is the litmus test & NJ has three House candidates running in support of the FairTax with two more just about ready to sign on.  These are the people who will re-limit government.

 

2.  How can we convince the many Americans who have grown dependent of the welfare state to sympathize with the conservative ideals?

 

This sell could get harder the more dependent the people are.  Also, the more dependent the less educated they will be.  But if they are living in poverty or deep poverty they have to know in their heart of hearts that there is a better life for them.  If we get them to think this way we (& more importantly they) have a chance.  Trying to improve their education & training is one main key.  The other is for them to be honest with themselves & shun the things that they know are really keeping them down.  The dignity of work will replace the sorrow of being in the welfare state.

 

3.  What do we say to non-conservatives who consider themselves pro-free enterprise and pro-constitution, but do not agree with or even recognize the conservative ideology?

 

This question is the most theoretical of the four & really is a natural subset of the last question below.  If the person is really pro-free enterprise & pro-constitution they are well on their way to being a conservative - they may classify themselves as an independent hating any other label for good reason.  See answer to #4 below for how to proceed.

 

4.  Finally, how can we constructively educate those who do not have the same ideals as us?

 

To constructively educate anyone, including ourselves, we have to get into the arena of ideas with an open mind where everyone learns.  Take every issue one @ a time with no predetermined conclusions & see where the discussions go.  Ask them to read a blog like this one for a while & if our questioner is on to something he will not only have made someone more conservative like himself but even better he will have found that in reality the person he is working with has become more libertarian.