Debt Is The Death of Hope

econ1Debt is about more than just money. It’s about the end of expectations and the death of hope.

In a speech at DHS Obama declared that he wants to “replace mindless austerity with smart investments that strengthen America.” Those “smart” investments scattered across a gargantuan $4 trillion budget include a $500 million Green Climate Fund payable to Third World Countries, and $105 million to help the government build better websites. Obama is fond of putting the word “smart” in front of stupid ideas to make them seem less stupid.

He denounces “mindless austerity” that his own mindless spending and refusal to compromise made necessary. His $4 trillion budget consists of phantom taxes that will never be collected, imaginary savings that will never materialize and entirely real amounts of money being spent to create a huge pile of debt and massive deficits down the road.

Obama’s $4 trillion budget is actually as stupid as the new left-wing Greek government elected on a platform of not paying their debts; a plan to replace their old policy of getting money in exchange for reduced spending with a new policy of not reducing their spending and demanding money anyway. So far this new policy has been rejected by every country from Germany to China. But I’m sure Obama loves it!

Greece has managed to spend itself into a debt that stands at 175% of its GDP. But of course we’re Americans. Our “smart” government with its “common sense reforms” and eagerness to spend a vast fortune to build better websites couldn’t possibly have dug us into a hole that deep. Our debt-to-GDP ratio is only 101%.

Obama announced he wouldn’t accept a budget that doesn’t raise spending, that doesn’t “invest” in America’s future with spending for things like inefficient solar panels from China to give to third world countries, paid for with money borrowed from China.

To the far-left, the very existence of massive debt is something that can be ignored. Debt, like war, will be over if you just want it to be.   You can wave it away with imaginary economics such as Obama’s claim that amnesty for illegals and ObamaCare will save us so much money that a $4 trillion budget will not be a challenge.

Obama’s plans to loot revenues outside the country are even more willfully delusional, leaving what’s left of the middle class as the biggest target. While Google isn’t going to let Obama pick its pockets, the middle class have fewer options. Obama’s plan to tax 527 college fund savings has been aborted, but it’s only the first shot across the bow of the upper middle class.

When Obama talks about “middle class economics”, what he really means is an economy built on taxing the middle class. His budget, with its expansion of the earned income credit and free community college, doesn’t offer much to the middle class, but it takes a lot. And what it takes most of all is their future.

Read the balance of Daniel Greenfield’s article, Obama’s Big Fat Greek Budget, at this link.

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