WE DON’T NEED NO “STINKIN” DEBT LIMIT

 

Every few months we are treated to the theater of The White House and Congressional Democrats demanding that the House raise the nation’s debt limit without any restrictions. Failure to do so, will, in their opinion cause a calamity of federal default and raise the specter of other nations questioning “the full faith and credit” of America. Never mind the fact that the continuous stream of tax payments flowing into the IRS easily cover the debt service and most of the ongoing government expenses putting the lie to their public statements. Never mind what Senator Obama said on the floor of the Senate in 2006: “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 Governments reckless fiscal policies… 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.” Never mind what Thomas Jefferson said on the subject of public debt in a letter to John W. Eppes on June 24, 1813: “It is a wise rule, and should be fundamental in a government disposed to cherish its credit, and at the same time restrain the use of it within the limits of its faculties, “never to borrow a dollar without laying a tax in the same instant for paying the interest annually, and the principle within a given term; and to consider that the tax is pledged to the creditors on the public faith.” On such a pledge as this sacredly observed, a government may always command, on a reasonable interest, all the lendable money of their citizens, while the necessity of an equivalent tax is a salutary warning to them and their constituents against oppressions, bankruptcy, and its inevitable consequence, revolution. But the term of redemption must be moderate, and, at any rate, within the limits of their rightful powers. But what limits, it will be asked, does this prescribe to their powers? What is to hinder them from creating a perpetual debt? The laws of nature, I answer. The earth belongs to the living, not to the dead. The will and power of man expire with his life, by nature’s law…”

Jefferson goes on to say in his letter that 19 years is a reasonable time to retire debt as it works to hinder one generation from laying burdens of debt upon the next. The main thrust of his argument is that the penalty of a tax to retire a public debt must be self imposed to restrain us from its overuse.

The speech that then Senator Obama gave in 2006 predates the accumulation of almost half of our current national debt. I say that he was correct in 2006 to say that deficit spending is a sign of failed leadership and that it still is today. When a member of the administration steps up to a microphone and proclaims that “air traffic controllers will be furloughed without an increase in the debt ceiling” he is either mistaken or lying. The airline industry and private pilots voluntarily inflicted a fuel tax on themselves though Congress years ago to pay for ATC and new air traffic facilities. Congress stole the fund generated by the tax some years ago and the Supreme Court made them put it back. Social security benefits are threatened and said to be in peril, but how can this be when they are a true entitlement and prepaid for by the beneficiaries. Veteran’s benefits, police and fire protection and every other scare tactic follow in quick succession as stage props to get votes to lean on Congress for more blank checks.

Every single responsible adult knows that deficit spending will lead to bankruptcy eventually. Margret Thatcher said in her famous quote: “eventually you run out of other people’s money”. The argument used to be that our debt to GDP ratio was not getting worse so people pushing for balanced budgets are just “being alarmists”. The recession has hurt the Growth of GDP so the argument is no longer used by its proponents. When Nancy Pelosi claims that we “don’t have a spending problem, we have a revenue problem,” she is shifting the blame onto the tax payers for not keeping up with the governments $6.2 million dollar a minute spending addiction. Yes, Nancy, we are not keeping up with your reckless spending. The high tax, regulation littered business environment that your liberal policies have inflicted on America has too few of us working. We don’t all have the special tax exemptions you conveniently arrange for your husband and relative’s businesses.

If a candidate does not swear to vote for balanced budgets and regulatory relief for business don’t vote for them. The press and special interest groups will make a big case for unlimited debt because they don’t want their free money to stop flowing. Don’t believe the hype!