Posts Tagged ‘balanced budget’

Want To Know How To Balance The Budget And Have Full Employment? Ask Republicans Who Are DOING It

July 18, 2011

Nebraska, a state governed by Republican conservative Dave Heineman.

First there’s the unemployment rate of 4.1%.  Second lowest in the entire nation (behind fellow Republican state North Dakota, for what that’s worth):

LINCOLN, Neb. (AP) — Authorities say Nebraska’s unemployment rate dropped to 4.1 percent in May, a drop of a tenth of a point from April’s 4.2 percent.

Then there’s the fact that this Republican state has a balanced budget.  And how did it balance the budget and get low unemployment?

[M]aybe there is something Washington can learn from Nebraska. How did Nebraska, with an estimated budget shortfall of almost $1 billion November 2010, get to a unanimous decision May 2011 and approve a balanced biennial budget of $6.9 billion?  A balanced budget that does not raise taxes and leaves nearly $300 million in the state’s cash reserves.

Some might presume that life is difficult for Nebraskans, what with their state government required to balance the budget and not allowed to borrow.  Actually Nebraska  is ranked #10 by Lifestyle Statistics, it was 3rd in top jobs behind North Dakota and Texas, and to top it off, the unemployment rate for Nebraska is 4.1%.

How did it happen? Strong leadership. A state constitution that requires a balanced budget and doesn’t allow for borrowing. Tough decisions made during tough times, not delayed.  Priorities identified. Discussions. Debates. Negotiations…and the use of a red line.

An interesting quote from Gov. Dave Heineman occurs midway through this snippet from an article entitled, “Caterpillar Threatens To Leave Illinois Over Taxes“:

“If Illinois doesn’t want your business, Texas does,” wrote Rick Perry, the governor of that state.

The governor of Nebraska, Dave Heineman, wrote: “In Nebraska, we balance our budget by controlling spending, not by raising taxes.”

An official in the South Dakota governor’s office chimed in: “In South Dakota, you make a profit, and you keep your profit.”

The Illinois tax increase will cost Caterpillar’s 23,000 employees in the state about $40 million this year, said Jim Dugan, the company’s chief spokesman. Higher taxes make it harder for Caterpillar to attract and retain engineers, accountants and other employees, Dugan said. He added that Caterpillar’s corporate taxes in the state also will increase but provided no estimate on the added cost.

“The state unfortunately continues to put off the tough decisions” about potential reductions in government spending and pension costs, Dugan said. He said Caterpillar was offering to advise the governor on cost-cutting based on the company’s own experience chopping pay and laying off workers during the 2008-09 recession

First, liberal Democrat Illinois is a hellhole.  And that’s because Democrats own that state.  Some interesting figures: 4 out of the last 7 governors of Illinois are convicted felons.  It’s government union pension program is the biggest disaster in the nation.  It’s major city Chicago is so filled with gang violence that even Democrats have been pleading for the National Guard to come in.  And, if that isn’t bad enough, Democrats are so dishonest that they just altered their congressional map to undo the clear will of the people.  That’s what Democrats bring.

All over the nation we’ve got cities that have voted Democrat for a hundred years.  And they are all hell holes.  While a jackass is in many ways an accurate symbol of what it means to be a Democrat, it would really be far more fitting if the symbol of the Democrat Party was a black hole surrounded by the white-hot fires of hell.  Because “Democrat” is really a portmanteau for “Demonic Bureaucrat.”  And hell is what demonic bureaucrats invariably bring.  Along with socialism and totalitarian control.

And with that said, did someone say Texas?  Did someone say Rick Perry?  Oh, that’s right, I haven’t talked about Texas and Republican Rick Perry yet.

From a liberal writing in the Los Angeles Times:

For the last few weeks, I’ve been unable to get a startling statistic out of my head: Since the recession officially ended, Texas has created more than 4 of every 10 new jobs in America.

That’s right, Texas: the reddest of red states, home to gun lovers and school textbooks that openly question whether the Founding Fathers intended for the separation of church and state. I am no ideologue. Still, whenever I get political, I tend to tilt reflexively to the left, making the jobs figure a bit disconcerting at first.

But there’s no escaping it. The number is real. Which means that if you care about putting people back to work at a time when nearly 14 million in this country are unemployed, maybe Texas has something to teach us.

[…]

According to the Dallas Fed, Texas generated 43% of the net new jobs in the U.S. from June 2009 through May 2011 — an enormous share when you consider that the Lone Star State accounts for about 8% of the nation’s economy.

So let’s see.  Nebraksa is flyover country as far as liberals are concerned; they prefer their completely failed major metropolitan areas that their completely failed polices have turned into complete failures for a good solid century.  But Nebraska – with it’s 4.1% unemployment rate (second only to ANOTHER state governed by Republicans) and it’s balanced budget – has the last laugh.  It’s kind of like that “Annoy a Liberal – Work hard and be happy” bumper sticker – only with a whole entire STATE.  If you want to try to weasel your way out of contemplating Nebraska’s success by arguing that it’s a small state and it’s low tax, spend-on-a-budget ways wouldn’t translate to a large state, let’s consider Texas and the 43% of ALL U.S. JOBS it has created, instead.

Basically no matter how you slice it, conservatives rule and liberals drool.

We’re coming upon a major decision: do we want four more years of the hellhole of God damn America, or do we want to pursue the economic policies that actually have the advantage of WORKING???

[Update:] Oh, my goodness, I forgot to point out that – after all the unhinged rabid liberal HATE that came out in Wisconsin – Governor Scott Walker was able to sign a balanced budget with no business-hostile tax increases.

‘Unexpected’ Increase In Tax Revenues: More Confirmation That Lower Taxes Increases Growth/Revenue

May 9, 2011

I just finished responding to a pair of enjoyable comments from Robbie (here and here).  And Robbie posts an excellent 5:46 minute video of the great economist Thomas Sowell:

As Robbie points out, I say much the same things as Sowell.  What he says about tax rate cuts and increased investment and growth having been proven by four presidents over nearly a century (Calvin Coolidge, John F. Kennedy, Ronald Reagan and George Bush) is exactly what I pointed out in my article “Tax Cuts Increase Revenues; They Have ALWAYS Increased Revenues.”

We just had more confirmation of the effectiveness of tax cuts in INCREASING tax revenues (which means that when the government has lower tax rates, it actually collects MORE in tax revenue than it would were it to have higher tax rates):

WASHINGTON – Treasury Secretary Timothy F. Geithner now is saying that, contrary to his recent dire warnings of “catastrophic economic consequences” should Congress fail to increase the nation’ debt limit, there has been an apparent unexpected increase in projected tax revenue, and the deadline for possible default has been benched until mid-spring.

Allow me to define “unexpected” for you: it is an adjective in Democratese for, ‘We’re too stupid to understand why, and too dishonest to admit it, but conservative economic policies are working.'”

A little more information as to why we had this “unexpected” increase in tax revenue comes out of an interview:

CHIOTAKIS: So how did the Treasury Secretary do this? I mean, I thought the old deadline of July 8th was pretty firm.

GENZER: Yeah, that’s what everybody thought. But Geithner actually got a little help from you and me, Steve — the taxpayers. It seems the IRS actually took in more tax revenue than expected last month.

There was an expectation that was building for the entire second half of 2010 that Republicans would win big in November, which greatly stimulated the stock market:

More than 85 percent of institutional investors see the GOP taking the House next month. While political polls suggest that changes are likely in Washington, a staggering number of professional investors think that the Republicans will win back the House of Representatives in November and that may be adding to their sense of a better business environment going forward. Since government policy error remains the biggest fear of investors, according to the poll, the view of DC trends matters.”

The unemployment rate – which had been steadily going UP, has gone down every month since Republicans were overwhelmingly elected and took over the House.  As I have pointed out in the past:

Here’s an interesting factoid that doesn’t seem to get any mention in the mainstream media: Unless I’m seriously mistaken, the unemployment rate has gone down every month since Republicans took control of The House in January:

Unemployment was if anything going UP.  And then Republicans took over, and whammo.  It started going down.  But Republicans didn’t receive so much as a scintilla of credit from the mainstream media.  It’s just amazing.

One of the things that investors and businesses were looking for from Republicans was their central promise that they would not budge in demanding that the Bush tax cuts be extended.  And as confidence grew that the Republicans would win in November and force Obama to reverse his repeatedly stated intention of pursuing Marxist class warfare and punishing investment, production and growth, people who actually produce in this nation began to act accordingly.

Hence the “unexpected” increase in tax revenue.

Democrats invariably point to the Clinton years as “proof” that the century proving that tax rate cuts increase revenues was just a ninety year fluke.

But the Clinton years actually prove the opposite: conservative policies were right during the Clinton years, too.

First, Clinton and Democrats increased taxes on the top marginal income rates in 1993.  Did wonderful things happen after that?  Well, if you’re a Republican, yes, they most certainly did: as a result of the complete failure of Clinton’s economic policy, 1994 marked the biggest takeover by Republicans in history, with Republicans slaughtering Democrats and taking over both the House and the Senate.

It wasn’t until Clinton reduced the capital gains rates that we really saw the kind of growth that Democrats love to point to.  It wasn’t until AFTER Clinton announced “the era of big government is over.”  And yet the actual reasons for that growth prove that their policies are totally wrong.

With the help of mainstream media propaganda, the American people have largely forgotten that Bill Clinton was forced to say, “The era of big government is over.”  With the help of mainstream media propaganda, the American people have largely forgotten that the “good” Clinton years came as a direct result of Republicans dominating both the House of Represenatives and the United States Senate.  With the help of mainstream media propaganda, the American people have largely forgotten that the “Clinton surplus” was the direct result of the Contract with America and its pledge for a balanced budget – literally over Clinton’s constant attempts to prevent it.

The mainstream media – like the Democrat Party whose propaganda whores they are – WILL NOT tell the truth about such matters.

But here we are again.  Republicans pass tax cuts, and then there’s an “unexpected” increase in revenue.  Just like every single other time.

After George W. Bush passed his tax cuts, we had dishonest and confused liberals reacting as the New York Times did:

“For the first time since President Bush took office, an unexpected leap in tax revenue is about to shrink the federal budget deficit this year, by nearly $100 billion.”

And for the record, President George Bush’s 2003 tax cuts:

raised federal tax receipts by $785 billion, the largest four-year revenue increase in U.S. history. In fiscal 2007, which ended last month, the government took in 6.7% more tax revenues than in 2006.

These increases in tax revenue have substantially reduced the federal budget deficits. In 2004 the deficit was $413 billion, or 3.5% of gross domestic product. It narrowed to $318 billion in 2005, $248 billion in 2006 and $163 billion in 2007. That last figure is just 1.2% of GDP, which is half of the average of the past 50 years.

Lower tax rates have be so successful in spurring growth that the percentage of federal income taxes paid by the very wealthy has increased. According to the Treasury Department, the top 1% of income tax filers paid just 19% of income taxes in 1980 (when the top tax rate was 70%), and 36% in 2003, the year the Bush tax cuts took effect (when the top rate became 35%). The top 5% of income taxpayers went from 37% of taxes paid to 56%, and the top 10% from 49% to 68% of taxes paid. And the amount of taxes paid by those earning more than $1 million a year rose to $236 billion in 2005 from $132 billion in 2003, a 78% increase.

It boils down to this: the more you hate America; the more you hate American economic power; the more you want to see the American people suffer; the more you should vote Democrat.

Now, I mentioned two comments to Robbie.  The other comment was about QE2 and its impact.

QE2 is the economic equivalent of sugar in nutrition.  Will it provide quick energy?  Sure it will.  Will that quick energy come at the expense of future health?  You bet it will.

Right now, as a result of the Obam Federal Reserve’s policy of increasing the monetary supply by buying debt from itself (literally creating money out of thin air), there is more economic activity.  Right now, as a result of this policy, credit rates are lower.  Fewer banks and corporations are going under because of the ready access to cheap money.  Investors see the stability and invest.

We should all feed our children tons of sugar, so we can enjoy the short term bonanza of frenetic activity.

Unless you worry about all the cavities, the weight gains, the diabetes, and of course that huge depressing crash with all of those catastrophic health consequences that necessarily come later..

The first time we ended QE1, the stock market lost 16% of its value in two weeks.  Which is to say it didn’t work the first time for the same reason it won’t work this second time.  Or a necessary third time, etcetera.

One of the more sinister effects of quantitative easing is that it essentially becomes a tax on saving.  You were busy at work putting away as much as you could during a period when your money was worth more.  But now, as a result of artificially increasing the money supply, all that money you accumulated in saving is worth less.  Why is this?  Because you can increase the money supply all you want, but you’ve still got the same finite amount of goods and services.  And when you’ve got twice as many dollars in the money supply as you had before, over time those same goods and services will cost twice as much as before, and so on.

Right now, prices are going up dramatically on virtually everything that matters.  And yet the only ones who refuse to admit it are the federal government and its stauchest mainstream media propagandists who think and report what the Obama regime wants them to think and report.

Meanwhile, the key factor that led to the economic crash in 2008 – the housing market – just had its worst quarter since the darkest depths of that crash.  And as bad as that is, the experts are saying that we are STILL  a ways off from hitting bottom.  Obama hasn’t solved anything.  And economists are described as being in the fetal position over this “unexpected” – (there’s that word again) – development.

It’s just like feeding that little kid sugar: frenetic activity that actually accomplishes nothing, followed shortly afterward by a nasty crash.

Obama Turns To Clinton To Advance The ‘Democrats As Party Success’ Myth As His Economy Turns to Crap

July 17, 2010

Barack Obama is widely seen as a complete failure.  Businesses large and small are turning on him and his incredibly harmful economic policies.  Even former staunch allies such as US News & World Report owner Mortimer Zuckerman and GE CEO Jeff Immelt have turned on him.

His answer?  To turn to an impeached, disbarred, lying and oath-breaking, sexual predator and unconvicted rapist to save a failed president for the sake of the Democrat Party.

From Reuters:

WASHINGTON, July 14 (Reuters) – U.S. President Barack Obama sought on Wednesday to lift sagging confidence in his economic stewardship by enlisting the help of predecessor Bill Clinton, as a leading business group issued a scathing critique of the administration’s policies.

Clinton, who presided over the 1990s economic boom, joined Obama at a closed-door White House meeting with business leaders to encourage job creation and investment, including in clean energy.

The U.S. Chamber of Commerce, a top business group, issued a rebuke of Obama’s economic agenda, accusing him and his Democrats in Congress of neglecting job creation and hampering growth with burdensome regulatory and tax policies.

What this country needs is a return to “it depends on what the meaning of the word ‘is’ is.”

It doesn’t matter that Clinton once recognized that Obama is little more than a Chicago thug.

It doesn’t matter in this Obama-era of race-baiting that Obama played the race card on Clinton.

It doesn’t matter that Bill Clinton subsequently demonstrated that he frankly deserved to be labeled as a racist when he outraged Ted Kennedy by telling him regarding Obama, “A few years ago, this guy would have been getting us coffee.”  Or that Clinton essentially said, “MAYBE joining the Ku Klux Klan was wrong” in honoring the former Kleagle and Exalted Cyclops Robert Byrd.

All that matters in the mainstream media propagandist cesspool is that – while Barack Obama is increasingly recognized to be a complete economic failure and fraud – Bill Clinton is an economic hero who can therefore temporarily restore confidence in Obama and his failed policies until after the November election.

As usual, the media isn’t telling the full truth about Clinton.  Or what happened to create the healthy economy of the 1990s.

The mainstream media is remarkably consistent: you can count upon them to never give Democrats the blame they deserve, and you can count upon them to never give Republicans the credit they deserve, about anything.

Bill Clinton is widely hailed for presiding over a great economy that featured a budget surplus.

But let’s consider a very basic fact:

From the Herald-Journal, January 27, 1984

If you took a quiz on government and were asked who writes the national budget, would you answer “The President” or “The Congress”?

The correct answer is “The Congress.”

The U.S. Constitution says that power belongs to Congress. All through our history, the Congress has exercised that power. The president cannot spend one thin dime that has not been approved by Congress.

Article One of the Constitution of the United States refutes the argument that Bill Clinton should receive credit for his “surplus”.  It was the Republican-dominated CONGRESS featuring promises that stemmed from the Contract with America, that resulted in the healthy budget that Clinton the media gave Clinton credit for producing.  Even though all he did was sign (often after vetoes) that which Republicans had actually produced.

What we don’t get told very was that Bill Clinton did such a miserable job running the country for his first two years in office that he suffered the largest (at least until this coming November) political defeat in American history when the Republicans swept into power over both the House and the Senate.  We’re not told that Republicans continued to be the majority party in both the House and Senate during the years that the media assigned Clinton all the credit.

It was those Republicans who were most responsible for the good times that resulted.  They are most certainly responsible for the budget surpluses that Democrats have congratulated themselves for ever since.  The very first item on the Republicans’ agenda was the Fiscal Responsibility Act.

One quick example of these Republican changes was welfare reform.  In his 1996 State of the Union, after losing even more fights, Bill Clinton was famously forced to admit, “The era of big government is over.”  And Republicans were making that statement true by passing welfare reform legislation and an avalanche of other cost-cutting measures that made a budget surplus possible.

Two welfare reform bills were passed by the Republican Congress, which Clinton vetoed.  Then a third bill was passed by the Republicans, which Clinton finally signed.  The National Organization for Women noted:

“There is little difference between the welfare bill (H.R.4) which the president vetoed in January and the new plan H.R. 3734/S 1795.”

An analysis by Steven Dawson for the Saint Louis University Law Journal observed that:

“In fact, President Clinton vetoed two largely similar prior versions of the bill.”

All rhetoric aside, Bill Clinton was FORCED to sign welfare reform into law by the Republican Congress.  Just as he was FORCED into a balanced budget, and any subsequent budget surplus.

But after being literally dragged into signing it, Bill Clinton took credit for it as though it had been his idea all along.  And the media duly reported that slanted history as a matter of “fact.”

That said, we can also point out that “the Clinton budget surplus” also had a lot to do with budgetary smoke and mirrors.

And like I said, the same media that will never give Republicans credit for something good will never give Democrats blame for something bad.

Consider the last three plus years’ worth of reckless spending.  The Bush administration has been blamed for much of this reckless spending, but it was actually a Democrat Congress that swept into power in 2006 (largely due to what we can now readily see was hypocritical demagoguery over the Iraq War and Hurricane Katrina rather than any economic issue) which proceeded to spend America into the stratosphere:

For the record, the last budget from a Republican President AND a Republican Congress – FY-2007 (passed in 2006) – resulted in a$161 billion deficit at a time when unemployment was 4.6%.  That’s what happened the last time the GOP was in control.

What happened when the Democrats took control in January 2007?  Harry Reid and Nancy Pelosi passed a FY-2008 budget that had a $459 billion deficit – nearly three times the deficit in the immediately previous Republican-passed budget.  Three times.  And this before the financial crisis that somehow “necessitated” all this massive spending.

Now, that’s a pretty crazy increase under Democrat control.  But you aint seen nothin’ yet.

The Democrats passed a FY-2009 budget with a staggering, mind-boggling, totally reckless $1.42 TRILLION deficit.

The FY-2010 budget approved by Reid and Pelosi and signed by Obama had an estimated $1.6 TRILLION deficit.

The deficit has increased from $161 billion in the last budget before Democrats took control of the Congress (FY 2007) to $1.42 trillion in the most recent fiscal year (FY 2009)—an increase of $1.26 trillion or 782%.

With three months remaining in the fiscal 2009 budget, the federal deficit just officially passed the $1 trillion mark.  Worse yet, Obama borrowed more than forty cents for every single dollar he spent.

We also suffered a budget shortfall of $94 billion in the month of June, which marks the first June in more than ten years (read, “encompassing the entire Bush presidency”).  Bush’s success in raising revenues is bookended by two Democrat presidents who failed.

And now the Democrats aren’t even bothering to pass a budget for the next fiscal year, so they can simply spend without any accountability whatsoever.

The old annual deficits under Republicans have now become the monthly deficits under Democrats:

In the 12 years that Republicans controlled the House, the average deficit was $104 billion (average of final deficit/surplus FY1996-FY2007 data taken from Table F-1 below).  In just 3 years under Democrats, the average deficit is now almost $1.1 trillion (average of final deficit/surplus FY2008 and 2009 data taken from Table F-1; FY2010 data taken from Table 1-3).  Source: CBO January 2010 Budget and Economic Outlook

Rep. Eric Cantor (R-Minority Whip) rightly pointed out on ABC’s “This Week”:

“If you look at the kind of deficit that we’ve incurred over the last three years that the Democrats have been in control of Congress, 60% of the overall deficit from the last ten years has occurred in that period. And frankly with the incurrence of the debt, we’ve seen very little result. That’s why we think we ought to choose another way.”

And yet the media falsely blame BUSH and Republicans for that spending, rather than Nancy Pelosi, Harry Reid, and the Democrat-controlled House and Senate, even though factually speaking the Democrats were ENTIRELY to blame for every single penny that was spent from January 2007 on.  Because our Constitution forbids a president from spending; it is CONGRESS that spends.

I also point out in that article (and many others such as this one) that Democrats were primarily responsible for the disastrous policies that led to the 2008 collapse.  They were basically completely responsible for Fannie Mae and Freddie Mac and their reckless policies, and then utterly refused to allow any reforms that would have averted the ensuing disaster.

In an honest world, Bill Clinton wouldn’t get anywhere near as much credit as he does for the strong economy of the 1990s.  And Republicans wouldn’t get anywhere near as much blame as they received for the 2008 collapse.

The problem is, our mainstream media advances one outright lie after another.  And the lies become “truth” through sheer repetition.

Obama isn’t calling upon Bill Clinton to actually offer advice on how to turn the economy around; he’s calling Clinton in as a prop.  Bill Clinton was forced to change his failed policies when the Republicans swept into power.  Hopefully, that is exactly what will happen beginning this November.