The Great Depression Online

Great Depression Online Archive Issue:

The Big Government Lie

Great Depression Online
Long Beach, CA
December 15, 2009

Inside This Issue You Will Discover…

*** Steny Hoyer: Fool or Knave?
*** Kicking the Debt-Can
*** The Big Government Lie
*** And More

Steny Hoyer: Fool or Knave?

According to U.S. Debt, the national debt has topped $12.1 trillion.  That’s over $39,000 per citizen.  This, of course, is small potatoes compared to the $106 trillion in unfunded liabilities – over $345,000 per citizen – that has been piled on the taxpayer’s tab…but it had Congress in a tizzy over the weekend.

Here’s why…

The federal debt ceiling is currently at $12.1 trillion.  So if Congress doesn’t raise the debt ceiling quickly, the U.S. Government will no longer be able to borrow money to pay its bills.  And, in classic Ponzi form, if it can’t pay its bills by taking on new debt, the government will default on its debt obligations.  

“Borrow, borrow, borrow like there’s just no tomorrow,” opined the New York Post.

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“Congress has been doing that for years, and now Pelosi, Reid & Co. are getting ready to go to the well again — this time for a truly staggering sum.

“Because if they don’t, Washington literally will run out of money.

“House Majority Leader Steny Hoyer (D-Md.) says Congress must move quickly to raise the federal debt ceiling by an additional $1.8 trillion so that Washington can borrow enough to stay afloat through the end of next year.

‘“We’ve incurred this debt, we have to pay our bills,’ said Hoyer.”

Did it ever occur to the man that incurring more debt to pay those bills is the act of an imbecile?

If it hadn’t, the man is a fool.  If it had, he’s a knave.  Our guess is…he’s both.

Kicking the Debt-Can

The debt, remember, is the sum of all annual deficits.  This year alone, for example, the deficit will clock in at over $1.5 trillion.  The government, you see, is spending over $3.5 trillion this year.  But its tax revenue is only about $2 trillion.  The $1.5 trillion deficit makes up the difference.

In total, for every dollar the government spends, it adds $0.75 in new debt.  This would be like if you had an annual income of $50,000, but spent $87,500…with the additional $37,500 being covered by credit cards.  A household that managed their finances in this manner would quickly spend themselves bankrupt.  Sadly, the government would rather bankrupt the Nation than face up to the magnificent mess they’ve created. 

As you well know, the government’s been kicking the proverbial debt-can down the street for years.  But over the last several years, it has become increasingly insulting.

It took 205 years, from the Declaration of Independence to 1981, for the Nation to rack up its first $1 trillion in debt.  Five short years later, in 1986, the national debt topped $2 trillion.  Four years after that it passed $3 trillion.

By 2002, the national debt was over $6 trillion.  By late 2009, it had doubled again to over $12 trillion.  But that’s not enough…

“Congress must soon raise the debt ceiling, now at $12.1 trillion, so the Treasury can continue to borrow, and Democratic leaders are eyeing a new figure close to $14 trillion, pushing the issue past next November’s election,” said AP.

The Big Government Lie

The spending in Washington is out of control to say the least.  The quacks in Congress would rather sell the Nation down the river than cut back the government’s behemoth size.  What’s more, while increasing the debt ceiling, they’re increasing the size of government.

In fact, on Sunday, the Senate, “…passed a $1.1 trillion spending bill with increased budgets for vast areas of the federal government, including health, education, law enforcement and veterans’ programs.”

“The spending bill passed Sunday includes $447 billion for departments’ operating budgets and about $650 billion in mandatory payments for federal benefit programs such as Medicare and Medicaid.  Those programs under immediate control of Congress would see increases of about 10 percent.”

Plus at a time of record unemployment and reductions in private sector pay, “…the bill also approve[d] a 2 percent pay increase for federal workers.”

At least one delusional Senator thinks the spending bill actually helps the economy…

‘“Every bill that is passed, every project that is funded and every job that is created helps America take another step forward on the road of economic recovery,” Senate Majority Leader Harry Reid, D-Nev., said after the vote.’

But that is the lie of big government and the fraud of government spending and stimulus.  The notion that somehow, someway, it creates wealth is a hoax.  Government spending always has and always will be successful at one thing in particular: Consuming wealth.

Any economic benefit it’s professed to have is a lie.


M.N. Gordon
Great Depression Online

P.S.  You can switch on the news and hope for the real story.  You can read the papers and pray they know what’s actually going on.  Or this time, you can settle in, read this letter, and finally…

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