Becoming a European welfare state

That’s essentially what is taking place with President Obama’s proposed budget.

Here’s some of what the budget policy will do.

  • Permanently expand the federal government by nearly 3 percent of gross domestic product (GDP) over 2007 pre-recession levels;
  • Raise taxes on all Americans by more than $2 trillion over the next decade (counting health care reform and cap and trade);
  • Raise taxes for 3.2 million small businesses and upper-income taxpayers by an average of $300,000 over the next decade;
  • Leave permanent deficits that top $1 trillion in as late as 2020; and
  • Double the publicly held national debt to over $18 trillion.

Here’s what it would do to federal spending per household according to Brian Reidl.

“Before the recession, federal spending totaled $24,000 per U.S. household. President Obama would hike it to $36,000 per household by 2020 — an inflation-adjusted $12,000-per-household expansion of government.”

In other words when you consider that discretionary spending has increased 84%:

The deficit reduction measures proposed in the President’s budget are all more rhetoric than action. The Pay-as-You-Go provisions and spending freeze cover such tiny fractions of the budget and are so filled with loopholes that they are destined to be ineffectual. The President’s Deficit Reduction Commission is compromised by a lack of legislative “fast track” protections, a deadline that sends recommendations to a lame duck Congress, and a complete lack of any public hearings that allow for Americans’ input.

When pressed on this issue of increased spending levels and not freezing spending now, President Obama played the blame game.

“The fact of the matter is, is that most of the increases in this year’s budget, this past year’s budget, were not as a consequence of policies that we initiated but instead were built in as a consequence of the automatic stabilizers that kick in because of this enormous recession. So the increase in the budget for this past year was actually predicted before I was even sworn into office and had initiated any policies. … Now, the reason that I’m not proposing the discretionary freeze take into effect this year — we prepared a budget for 2010, it’s now going forward — is, again, I am just listening to the consensus among people who know the economy best. And what they will say is that if you either increase taxes or significantly lowered spending when the economy remains somewhat fragile, that that would have a de-stimulative effect and potentially you’d see a lot of folks losing business, more folks potentially losing jobs. That would be a mistake when the economy has not fully taken off.”

Thankfully we can reverse this path being set by President Obama and his liberal cohorts in Washington by sending a message in the November elections.  As Ronald Reagan said back in 1964:

“This is the issue of this election: Whether we believe in our capacity for self-government or whether we abandon the American revolution and confess that a little intellectual elite in a far-distant capitol can plan our lives for us better than we can plan them ourselves.”

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