Thursday, October 29, 2009

Obama's SwindleUS Plan and The States

USA Today reports that the States have used money from Obama's $787 Billion SwindleUS Plan to save 388,000 jobs so far this year. Of course, more than 6 million jobs have been lost since Obama was elected President and there are about 15 million people, or 17% of our population, unemployed so this 388,000 mostly government jobs saved as a result of Obama's economic plan is really a drop in the bucket. And, the UCLA Anderson School of Business is projecting GDP (Gross Domestic Product) growth in 2010 of just 1.7%. Most economist believe that to achieve job growth, it requires at least 3% GDP growth, so obviously Obama's SwindleUS Plan is a complete failure.

The Obama Administration is trying to spin this 388,000 jobs "saved" into something significant; but the reality is that what ever government jobs that have been "saved" are offset by jobs lost as a result of the taxes and deficit spending needed to fund government spending. Growth in government happens at the expense of the private sector, always. What is really happening is that about 35 states are in serious deficit because their elected representatives refuse to cut spending to bring their budgets in balance. In essence, the States are the latest group of welfare recipients in the country receiving a bail out. When will it end? The States are like heroin addicts that just can't kick the habit of out of control government spending.

The states are hooked on welfare. Federal Stimulus money has protected the states from making big cuts in the number of government employees and a variety of social programs that are bankrupting the states. Clearly, public employee unions have pushed most states and the federal government to insolvency. The problem is that Obama's SwindleUS money will stop in December, 2010. Then what? The result will be fiscal chaos because elected state representatives just won't make the tough decisions necessary to cut cost.

The Obama Administration, for now at least, will not commit to more money for the states in 2011 because Obama's trillion dollar deficits are already bankrupting the United States causing the collapse of the dollar. This is like squeezing blood from a rock. However, the public employee unions, that elected Obama, will apply intense pressure for more state money because without it, their jobs are gone. And, a lot of Obama's Peeps are on the dole, which will stop if the states run out of money. The fact is that all states need to cut wasteful spending and programs to get their fiscal houses in order. Giving the states more bail out money is a huge mistake that will only make matters worse. Ultimately, a heroin addict must go through withdrawl, however painful, to kick the habit. There is no other way.

Most states are required by law to maintain balanced budgets; yet they use gimmicks to ignore their state Constitutions like moving expenses into the next year by one day or borrowing to fund operating expenses. What we have at both the state and federal level is Government Gone Wild.

Clearly, we need federal and maybe even state Constitutional Amendments requiring Term Limits, an iron clad balance budget amendment and an amendment that limits taxing authority at the state and federal levels to get this all under control. In the mean time, we have to elect Conservatives to take back our country and stop the fiscal insanity that is bankrupting our states and our country.

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