In a transparent attempt to shift the blame for S&P’s credit downgrade of the federal government, Obama trots out his surrogates to blame the Tea Party movement and S&P for his disastrous fiscal policy. The administration’s allies in the media are also on board with the narrative, as websites from Salon to Huffpo attempt to deflect attention away from Obama’s epic failure to lead us out of our financial crisis.
In yet another out of touch and meaningless speech, President Obama steps in front of the microphone today and proposes new taxes be raised to pay for even more stimulus sending. Not even the lowering of America’s credit rating can move President Downgrade away from his ideological tax and spend agenda.
Obama doesn’t deserve all the blame for America’s massive debt but he (and his party) are certainly to blame for the credit downgrade. The Democrats intransigent stance regarding the amount and timeliness of spending cuts led directly to the credit downgrade. The GOP had offered several plans that would have satisfied S&P, including Cut, Cap & Balance. Evidently, the idea of a balanced budget is a radical notion (and DOA) in the hotbed of progressivism known as the U.S. Senate.
The problem is that Bush increased the national debt from $6 trillion to over $10 trillion during his eight years in office, an increase in the debt of over $4 trillion, which is outrageous.
Instead of solving our debt problems as promised, Obama has increased the national debt by $4 trillion in less than four years and is now increasing the debt by $1.5 trillion a year. At that rate, Obama will have increased the national debt by more than $10 trillion in an eight year period, which is even more outrageous. At the current rate of spending, by the end of two terms, Obama will have incurred more debt than all of the previous presidents combined, including Bush.
The very enlightening chart below shows how the national debt has been increased, depending whether the Democrats or Republicans control congress.
It is interesting that when Democrats are in control of Congress or when the Congress is split (as it is now), debt as a percentage of GDP increases. However, when the GOP are in control or Congress, debt as a percentage of GDP decreases or stays flat.
Regardless of who is in control of congress and in light of Obama’s failed stimulus, it should be clear that increasing taxes and massive federal spending will never solve America’s debt crisis.
The idea that increased revenue would be used by politicians to pay down the debt is patently absurd. History has shown us that any increased tax revenue will most certainly be used to grow the size of government, not to decrease our national debt. That is the sad truth, no matter what the politicians are currently claiming.