Saturday, August 11, 2012

Contrast of Political Visions

The visions of the Democrat and Republican parties are becoming clearer. The Democrat vision is that those in the United States are advantaged by the government and have/will become prosperous because of that. The Republican vision is that Americans “are endowed by their Creator with certain unalienable rights” and that these rights and freedoms have enabled the United States to become the greatest nation on the planet. The former is a vision of dependency on government; the latter one of dependency on our Creator and self-reliance using the gifts that He provides.

Neither party is really for limited government although a handful of Congressmen may be. The Republican party has controlled the U.S. House of Representatives since January of 2011. The leadership has consistently caved to Democrat demands. Compare this to January 1995 when the Republicans took control of the Congress for the first time in 40 years (1955-1995). Ronald Reagan's accomplishments were notable because both the House and Senate were Democrat-controlled during both of his terms. Bill Clinton is held up as an example by the Democrats because he had budget surpluses in 1998-2001. With a Democrat-controlled Congress he had large deficits. Confrontation with Speaker Gingrich shut down the federal government twice before Clinton moderated his position. President Obama is seeking to undo laws like welfare reform which made the surpluses possible. He has ignored the Defense of Marriage Act (signed by Clinton) and the Immigration laws passed by a Democrat-controlled Congress and signed by Reagan in an amnesty compromise. The amnesty happened for millions of illegals; the enforcement did not. Now the President wants another amnesty. When the Republicans point out that the Democrats lied before and refuse, the President illegally grants the amnesty by Executive Order.

The federal government has formed a monopoly control of student debt. Over 40,000,000 voters now owe taxpayers over $1 Trillion. The interest rate was set to double from 3.4% to 6.8%. Congress is “working” to prevent that – especially in an election year.

Most Americans simply don't understand the math. It is not possible to service a $16 Trillion national debt and another $115 Trillion of unfunded obligations (Medicare, Social Security, pensions, disability, etc) with a $15 Trillion GDP. We somehow believe that we may fly first-class to Las Vegas, rent the most expensive suite, eat room-service food prepared by chefs, have parties etc. and put it all on credit cards for which we will only pay the minimum! How will the government save us then? The “safety net” programs have been so abused that soon there will be no money to fund them. If we pay $300 Billion each year for interest, then what if interest rates go from 1.6% to 10% (due to our poor credit rating and excessive printing of dollars) and interest rises to over $1Trillion/year! QE, QE2, QE3, etc confiscate the wealth of the “Makers” by devaluing the dollar, but eventually the “Takers” will suffer. Progressive-socialism will fail, because you eventually run out of other people's money!

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