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  1. #1
    Join Date
    May 2007
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    Atlanta area
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    Excellent Speech

    This is a speech made by a famous senator, with interspersed comments from a forum poster. Can you guess who made the speech?

    Everything he said then is true today except the numbers are far, far higher.

    The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies.

    Over the past 5 years, our federal debt has increased by $3.5 trillion to $8.6 trillion. That is ‘‘trillion’’ with a ‘‘T.’’ That is money that we have borrowed from the Social Security trust fund, borrowed from China and Japan, borrowed from American taxpayers. And over the next 5 years, between now and 2011, the President’s budget will increase the debt by almost another $3.5 trillion.

    [Since Pres. Obama's election, our federal debt has increased by $5.5T to $15.856T (6/30/2012). Over the next 5 years, Pres. Obama's budget will increase the debt by almost $3.9T.]

    Numbers that large are sometimes hard to understand. Some people may wonder why they matter. Here is why: This year, the Federal Government will spend $220 billion on interest. That is more money to pay interest on our national debt than we’ll spend on Medicaid and the State Children’s Health Insurance Program. That is more money to pay interest on our debt this year than we will spend on education, homeland security, transportation, and veterans benefits combined. It is more money in one year than we are likely to spend to rebuild the devastated gulf coast in a way that honors the best of America.

    [In FY2012, interest paid on the federal debt was $359,796,008,919.49 ($359 billion). Medicaid outlays are about $267B, I'm not going to add up all the others...]

    And the cost of our debt is one of the fastest growing expenses in the Federal budget. This rising debt is a hidden do-mestic enemy, robbing our cities and States of critical investments in infrastructure like bridges, ports, and levees; robbing our families and our children of critical investments in education and health care reform; robbing our seniors of the retirement and health security they have counted on.

    [Actually HHS outlays are the fastest growing segment of the federal budget today, primarily related to Obamacare.]

    Every dollar we pay in interest is a dollar that is not going to investment in America’s priorities. Instead, interest payments are a significant tax on all Americans a debt tax that Washington doesn’t want to talk about. If Washington were serious about honest tax relief in this country, we would see an effort to reduce our national debt by returning to responsible fiscal policies.

    But we are not doing that. Despite repeated efforts by Senators CONRAD and FEINGOLD, the Senate continues to reject a return to the commonsense Paygo rules that used to apply. Previously, Paygo rules applied both to increases in mandatory spending and to tax cuts. The Senate had to abide by the commonsense budgeting principle of balancing expenses and revenues. Unfortunately, the principle was abandoned, and now the demands of budget discipline apply only to spending.

    As a result, tax breaks have not been paid for by reductions in Federal spending, and thus the only way to pay for them has been to increase our deficit to historically high levels and borrow more and more money. Now we have to pay for those tax breaks plus the cost of borrowing for them. Instead of reducing the deficit, as some people claimed, the fiscal policies of this administration and its allies in Congress will add more than $600 million in debt for each of the next 5 years. That is why I will once again cosponsor the Paygo amendment and continue to hope that my colleagues will return to a smart rule that has worked in the past and can work again.

    [0bama's payroll tax reduction and the special tax cuts for cronies embedded in the stimulus bill were not accounted for by PAYGO rules, either.]

    [Actually the deficit was shrinking rapidly under the Bush administration, once the 2003 tax cuts were enacted. From $412B in 2004, the annual deficit had shrunk steadily until the recession hit, $318B in 2005, $248B in 2006, and $160B in 2007.]

    Our debt also matters internationally. My friend, the ranking member of the Senate Budget Committee, likes to remind us that it took 42 Presidents 224 years to run up only $1 trillion of foreign held debt. This administration did more than that in just 5 years. Now, there is nothing wrong with borrowing from foreign countries. But we must remember that the more we depend on foreign nations to lend us money, the more our economic security is tied to the whims of foreign leaders whose interests might not be aligned with ours.

    [Mr. 0bama has increased the debt by more than $5.5T in less than 4 years.]

    Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘‘the buck stops here.’’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.

    I therefore intend to oppose the effort to increase America’s debt limit.

    -U.S. Senator Barack Obama (D-IL)
    Floor Speech
    March 16, 2006

    http://www.boortz.com/weblogs/nealz-...g-assignments/
    Last edited by Space Racer; 11-22-2012 at 12:06 PM.
    Vacuum Technology:
    CRUD = Contamination Resulting in Undesirable Deposits.
    CRAPP = Contamination Resulting in Additional Partial Pressure.

    Change your vacuum pump oil now.

    Test. Testing, 1,2,3.

  2. #2
    Join Date
    Jan 2001
    Posts
    7,487
    Yep, the debt ceiling will be raised...again and again...probably for as long as we are a nation..... and of course Obama opposed it when Bush was president.... the debt ceiling votes are always along party lines.
    One things for _______ sure, ________ rock didnt land on ______ sorry ___. That ___ __ _ _____ wasnt nowhere near _______ a _______ years ago. __ aint even a ______, __ is half _______ and half ________.

  3. #3
    Join Date
    Feb 2009
    Location
    Canada
    Posts
    6,876
    The three best charts on how Clinton’s surpluses became Bush and Obama’s deficits

    At CBPP, Kathy Ruffing and Jim Horney break the spending apart, showing how much went to the wars in Iraq and Afghanistan, how much went to the stimulus, and so on. When built that way, the Bush tax cuts appear to be the single largest policy contributor the current deficits.

    CBPP also projects the numbers forward into the next decade. Because the tax cuts continue to grow in size, but the stimulus and the wars in Iraq and Afghanistan end, that further enlarges the role the tax cuts play in the expected deterioration of the budget.

    All these analyses tell the same story in one key respect, however. The primary drivers of the debt predate Barack Obama. The post-9/11 wars and security build-up, the Bush tax cuts, and the 2001 and 2008 recessions simply began before Obama became president. You can blame him for extending the Bush tax cuts till 2012, or for the stimulus (though the stimulus would never have happened without the 2008 financial crisis), but the structural of deterioration came in the Bush years.


    Sorry about the big picture.
    Never argue with a fool, onlookers may not be able to tell the difference. —Mark Twain

  4. #4
    Join Date
    May 2007
    Location
    Atlanta area
    Posts
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    Well, that's one way of looking at it.

    But:

    1. It leaves out the expensive stuff: healthcare spending and interest on the debt.

    2. Even if the Bush-era tax cuts were left in place, tax revenues would be above the historical 18% of GDP average in short order.

    3. Defense represents 19% of the federal budget. Even if the entire defense portion was eliminated, the budget would not be balanced.

    4. When viewed as a percent of GDP, government debt and defense spending both remained relatively low during the "war on terrorism."
    Attached Images Attached Images       
    Vacuum Technology:
    CRUD = Contamination Resulting in Undesirable Deposits.
    CRAPP = Contamination Resulting in Additional Partial Pressure.

    Change your vacuum pump oil now.

    Test. Testing, 1,2,3.

  5. #5
    Join Date
    May 2007
    Location
    Atlanta area
    Posts
    2,492
    (Failed edit.)
    Vacuum Technology:
    CRUD = Contamination Resulting in Undesirable Deposits.
    CRAPP = Contamination Resulting in Additional Partial Pressure.

    Change your vacuum pump oil now.

    Test. Testing, 1,2,3.

  6. #6
    Join Date
    Nov 2004
    Location
    Austin, TX
    Posts
    870
    There are at least two ways of estimating the effects of tax changes. One is a static method, the other is dynamic.

    The static method assumes that tax cuts don't increase economic activity and raising taxes doesn't decrease it. Projections are pretty straight forward and never seem to match later observed reality.

    The dynamic method assumes that tax cuts increases economic activity and therefore will eventually result in more revenue coming in.
    The dynamic method also assumes that raising taxes decrease economic activity and will eventually result in less revenue coming in.

    There are good historical records of the dynamic method having a closer relation to what really happens than the static method.

    Raising taxes frequently decreases revenue in the long term. Decreasing taxes frequently increases revenue in the long term. Note increased revenue seldom equals reduced deficit, congress critters typically increase spending when they see more money coming in and seldom reduce it when money decreases.

    Thus I suspect the chart that shows the long term expenses of the costs of the Bush tax cuts is based on the static model and bears little relation to reality. A tax cut is not an expense, it's a decrease in negative regenerative feedback into the economy and has the net result of increasing economic activity, increasing employment and thereby increasing total revenue.
    Last edited by allan38; 11-23-2012 at 08:48 PM.
    “I am for doing good to the poor, but...I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. I observed...that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.”
    ― Benjamin Franklin

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