By Sean Hannity | Jan. 6, 2014 02:33pm
THE ECONOMIC PROBLEM:
We have all witnessed the failing economies around the world. Greece, Spain, Portugal, Italy, France, Ireland and a multitude of other countries, are all in state of flux, and are struggling to bring back prosperity. These nations were, and are, a warning to us, and America is literally on a path to fiscal ruin. This is not rhetoric or hyperbole; it is a matter of simple math.
Today's economic problem is the moral issue of our time. We are LITERALLY STEALING FROM OUR CHILDREN AND GRANDCHILDREN. We are taking a sledgehammer to their piggy banks, removing any spare change, and borrowing even more money from countries like China. They will end up spending their entire working lives paying this money back, unless we do something BOLD today.
Just look at the numbers:
1) Record Debt: $17 plus trillion, $90 Trillion in unfunded liabilities. Remember President Obama said 9 Trillion dollars in debt was "Irresponsible and Unpatriotic.”
2) Record Deficits: $500 Billion to 1.4 Trillion annually, in other words the money government is borrowing after they spend all of our tax money.
3) Social Security and Medicare both are on a path to bankruptcy. The government itself predicted Medicare's giant hospital trust will be exhausted in 2026, while the date that Social Security will exhaust its trust fund in 2033. What happened to the lockbox securing your retirement? They SPENT IT!
4) Obamacare. Much worse than a "website" financially, this is a Ponzi scheme where the young and healthy are forced by the government to buy insurance they do not want, or need, and to subsidize the sick, the elderly and the uninsured.
5) Nearly 50 million Americans on food stamps or welfare, almost twice the number America had in January 2009.
6) The lowest labor participation rate America has seen in decades.
7) A Federal Reserves that is pumping the economy with 85 Billion dollars a month.
8) A legislative and executive branch that routinely uses questionable accounting practices, and are seemingly paralyzed when it comes to addressing these serious problems.
9) Americas top 40% are paying almost 100 percent of the income tax bill, and are frequently excoriated by selfish politicians for not paying their "fair share." All the while Americas in the bottom 40% of wage earners, not only on average are paying no income taxes, but are the recipients of fellow taxpayers earnings; in many cases earning tens of thousands of tax dollars in benefits.
10) Nearly 1 in 6 Americans now live in poverty, and nearly 1 in 5 of those are American children. For these Americans, their lives have clearly devolved away from pursuing happiness, into a state of pursuing basic survival.
For all the debt being accumulated all in the name of “helping people" beginning with LBJ's war on poverty to the modern day, it is clear a government top/down redistribution model is not the answer.
CONSERVATIVE SOLUTION: THE ECONOMY
If I told you it was possible to balance the Federal Budget in 6 years without raising taxes, and all that was necessary to achieve this would be to cut 1 penny out of every dollar government spends every year for 6 straight years, would you support this plan?
Below is an incredible summary from Alison Acosta Fraser of the Heritage Foundation. Pay special attention to TOTAL SPENDING AND TOTAL REVENUE.
Overall Budget Trends:
- Over the past 20 years, federal spending grew 71 percent faster than inflation.
- Entitlement spending more than doubled over the past 20 years, growing by 110 percent (after adjusting for inflation). Discretionary spending grew by 60 percent.
- Deficits have pushed up the debt each year since 2002 as federal spending exceeded revenue. Fiscal year 2012 marked the fourth consecutive year of $1 trillion deficits.
- Although debt held by the public surged from 33.6 percent of gross domestic product in 2002 to 73 percent in 2012, net interest costs have held below 2 percent of GDP because interest rates have fallen to all-time lows.
- In 1962, defense spending was nearly half the total federal budget (49 percent); Social Security and other mandatory programs were less than one-third of the budget (31 percent). Two major entitlement programs, Medicaid and Medicare, were signed into law by President Johnson in 1965.
- In 2012 entitlements were nearly 62 percent of total spending, while defense dropped to less than one-fifth (18.7 percent) of the budget.
PART 1: With the exception of 2007, notice we increase spending each and every year. Is it really too much to ask that government live within its means? Is cutting 1 penny out of every dollar spent by government for the purpose of stopping GENERATIONAL THEFT too onerous a burden? What will our children and grandchildren say about us when they must pay this money back?
What many may not realize is that the government, through the practice of baseline budgeting, increases spending dramatically every year. Is your salary keeping pace with government spending? This is now a moral issue.
PART 2: A Balanced Budget Amendment - We need a new conservative caucus that says no to any and all deficit spending.
PART 3: A percentage limit on the amount of money government may take from working Americans. Is $.35 cents out of every dollar you earn going to the government enough? $.40 cents?
In other words after you pay federal, state, local, sales, property taxes – just how much out of every dollar should you be allowed to keep? Where are the politicians who will boldly stand up for the people? Those who work hard, pay taxes, obey laws, and raise their families!
In summary, the Conservative Solution to solve our debt and deficit problems is:
1) Penny Plan
2) Balanced Budget Amendment
3) Percentage Limit on any individual's Tax Liability
>>TOMORROW: My Conservative Solutions for Energy Independence