CBS News’ John Dickerson advises President Obama to “delegitimize” and “pulverize” Republicans. Good community organizer tactics, but why govern this way?
Actually, Obama’s ideological drive to transform America fundamentally may end up building an economic doomsday machine.
Conservatives’ adherence to Constitutional constraints animate them to reject an autocratic plunge into the doomsday model of Greece, a sensitivity not shared by D.C. Democrats who unlawfully sowed seeds of economic chaos by refusing to pass a budget for four years.
How many times have liberal Democrats declared indignantly that Social Security doesn’t add to our deficit nor debt? That is fraudulently wrong. But it reveals much about Obama’s economic strategy for his second term. Remember that the Trust Fund consists of Treasury IOUs, not real money.
In 2010, for the first time, Treasury redeemed $37 billion in IOUs to cover Social Security’s shortfall in payroll tax revenue, adding that amount to the debt.
Over the next decade, more than a half-trillion dollars in IOUs will have to be similarly redeemed, again adding that amount to our national debt. And that’s just the tip of the iceberg.
To meet benefits from 2012-2086, Social Security projects IOU redemptions, which D.C. politicians euphemistically call Social Security’s unfunded liability, will reach $8.6 trillion, the degree promised benefits will exceed estimated tax revenues. Treasury’s options are: increase taxes, borrow money, or cut benefits to cover these rapidly escalating shortfalls as baby boomers retire.
Being “unfunded,” this $8.6 trillion is in addition to the acknowledged debt of $16.5 trillion that Obama’s wild over-spending drives our debt toward $20 trillion by 2016. That’s double the debt he inherited from Bush.
We must stop this race to emulate Greece and cut spending from 25 percent of GDP back to, or below, the historical level of 20 percent.
Wes May, Pinehurst
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