The Obama Administration was frustrated by the sequester because it
reduced planned government spending. But the real concern was that the
President finally lost something to House Republicans. Up to this point,
the Administration had used fiscal crisis to win every major battle in
the last four years.
Now, in the aftermath of losing something, the Administration is
sending out federal officials to 100 U.S. cities to train local
officials on how to get and use federal funds that are going unspent.
The White House seems to believe in spending as the top solution to
nearly all our economic and social ills. As a result, it seems to think
that governments at every level need to use up everything allotted to
them, not scrimp and save.
In the process, the Obama Administration is also building a network
of officials spending additional money, which will help it tell voters
to elect Democrats if they want to keep these programs.
Ultimately, the Obama Administration wants to increase government
spending, at truly unprecedented levels, and it knows it can only do
this as much as it desires if it controls both houses of Congress along
with the White House. The top goal of the West Wing seems to be getting
back the House in 2014.
But it is the American people who are suffering because of this
spending bonanza. The national debt is now over $16.5 trillion, which
amounts to over $51,000 for each man, woman and child in the United
States. In other words, if you have a family of 5, you basically owe
$255,000 today to the government. Add this to your list of savings,
assets and debts, and most families aren't doing so well.
This weight of debt is real, holding down the economy and keeping households from getting ahead.
After the White House got the biggest tax raise in twenty years in
the fiscal cliff vote, personal income for Americans was down 3.6% in
January, the largest monthly decrease in twenty years!
And a number of companies just announced a new round of layoffs,
including 17,000 jobs lost at JP Morgan Chase, 3,000 jobs from Dish
Network, 5,400 jobs from American Express, 3,000 jobs from United
Technologies, and many others.
While the people suffer, the Executive branch keeps pushing for more
government spending, which will require more debt, higher taxes, and
increased inflation.
What is the White House thinking? Why doesn't it incentivize the economy so we see more jobs and less debt?
There are two answers. First, it appears this administration actually
believes that bigger government is the best thing for the nation.
Second, it seems the President's major focus right now isn't the
economy but rather winning the House back in the 2014 election so
Washington can adopt FDR-style leaps in growing government.
As The Washington Post reported, the first phone call
President Obama made after leaving the platform on election night was a
call to Steve Israel to commit to taking back the House in 2014. The
second call was to tell Nancy Pelosi the same thing.
Really? Not jobs? Not the economy? Not debt? Not inflation? Not oil prices?
In all of this, however, the 2014 election will most likely hinge on
what Republicans in the House do in the next sixteen months.
If they take a stand against government spending, force the
government to shut down non-essential programs until Congress gets a
balanced budget, and in general show the American people they really do
want to fix the economy, they will win even more support in 2014.
If not, if they continue to waffle on nearly everything and let the
President keep winning proposals to increase government spending, they
may well lose the House in the next election.
Share this newsletter: