Right Opposition

Deficit government spending is front and center now. Supporters of the Obama stimulus argue that deficit spending is needed to restore the strength of the economy. Opponents disagree. They say the deficits are staggering and crippling the economy. But at the same time those who oppose Obama are themselves arguing for deficits. They want an extension of the so-called Bush tax cuts. Obviously more money in would mean a smaller deficit.

Obama supporters argue that either way you have deficits. They are correct but incomplete in their analysis.

Some deficits are better than others.

Money that flows to Washington in the form of taxes represents a leakage from the economy. Even though the government will spend that money it will do so inefficiently and that’s the rub. Money spent by business is far more efficient than tax money doled out by Uncle Sam. Money can be spent on needed resources which directly impact the local business owner. This fully decentralized stimulus avoids politics, avoids unneeded handouts, avoids administrative overhead and places the money where it will do the most good.

And that deficit? It will rapidly disappear as revenues and incomes rise. It will also allow businesses to hire the unemployed and underemployed.

So why does the government seem so fixated on taking your money and spending it for you? It’s all about power and politics. Power over your labor and your money and gaining political goodwill by spending money where it buys the most votes.

For a thinking person devoid of political desires, the only answer is to extend the Bush tax cuts.

Does your wallet feel a little lighter? It should. Uncle Sam just bumped the debt ceiling to $1.9 trillion. That means you have even more that you have to pay back in the form of taxes in coming years.

Politico reports that Congress approved the record $1.9 trillion debt ceiling increase Thursday together with legislation to reinstate “pay-as-you-go” rules credited with helping to rein in deficits during the 1990s. CNN reports that the total U.S. Federal debt now stands at a staggering $12.3 trillion.

Earlier Alabama’s Senators Sessions and Shelby voted against the debt resolution in the upper chamber. Joe Bonner of Alabama’s 1st voted against it in the House.In fact, every single Republican in the House voted against the debt increase – every one. 37 Democrats voted against it.

This isn’t the end either. Remember the Obama budget? It is full of even more red ink and continues to ignore the economic reality that government cannot spend us out of debt. The roost is ready and the chickens are on their way in.

Oh and by the way, only one Alabama Congressman voted to raise the debt ceiling: Artur Davis (D-Birmingham). Davis is a leftist who has introduced a bill to provide federal loans to small businesses. Davis should remember that such loans are the province of banks. If left alone the banks will lend to any credit worthy organization or business. Fortunately Davis is the only Democrat among Alabama’s entire delegation.

Full vote results from the House are here: