“Federal spending on entitlements and interest on the debt drives the federal budget crisis. Together the three major entitlements of Social Security, Medicare, and Medicaid (including Obamacare), as well as net interest, make up more than half of all spending in the federal budget today. Their share of the budget will grow to over two-thirds of all spending in 10 years. By 2025, the major entitlement programs and net interest together will eat up all tax revenues collected in that year.”
“The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists.”
— Joan Violet Robinson
“As we approach the ‘fiscal cliff’ of punitive taxation and draconian spending cuts it might be time to suggest that Congress consider that we change our National Emblem to the Ostrich. … a lack of leadership seems to indicate that neither political party has the will to find a totem to make the hard decisions that loom before us in either spending or taxation. So many politicians either seem confused or scared to the point of paralysis on this impending doom.
The results of the recent election are to blame, some say. The voters left in place a Republican House and a Democrat in the Presidency. … one in either party is stepping up to take a stand on the numbers game which we call the budget process …. The head in the sand mentality had taken hold of so many in Washington, so clearly the solution is to adopt the Ostrich as our national emblem. We can’t seem to face our fiscal problems at home nor our foreign problems of a nuclear Iran. We would rather pretend that none of these problems exist and just stick our heads in the sand. So it seems that the Ostrich is perfect for the new national emblem.”
By David Brooks in LBN E-Lert Article
“In 1980, about 30 percent of Americans received some form of government benefits. Today, as Nicholas Eberstadt of the American Enterprise Institute has pointed out, about 49 percent do.
In 1960, government transfers to individuals totaled $24 billion. By 2010, that total was 100 times as large. Even after adjusting for inflation, entitlement transfers to individuals have grown by more than 700 percent over the last 50 years. This spending surge, Eberstadt notes, has increased faster under Republican administrations than Democratic ones.”
“The storyline around America has taken a sudden, and to many, unexpected turn in the past couple months. Just two weeks ago, The Economist featured a cover with a shirtless Uncle Sam flexing with the words “Comeback Kid” above the muscle-bound American icon. This wasn’t your father’s Uncle Sam poster. This Uncle Sam had red, white, and blue pasties on its nipples. The new America seems to have an edge.
The message behind that Economist cover? America has managed to come out of the recession with a leaner, more powerful economy, and is quietly becoming an energy superpower on par with Saudi Arabia thanks to recent advancements in finding new oil and gas. Along with a revitalized energy future, America has begun paying down its debts, closing its trade gap, and was the first to clean up its banking system.”