Obama claims we can afford $74 billion increase in spending
Using his radio address on Saturday to promote his new tax and spending schemes, the president claimed it was time to renew our uncontrolled spending because the deficits have been reduced over the last few years.
In the next breath, the president says that he proposals wouldn't add to the deficit. If so, why bring up deficit reduction unless it's to assure us that we can afford to increase it?
Despite a national debt over $18 trillion, President Obama said Saturday the nation can afford the major spending increases he’ll put forward in his fiscal year 2016 budget, due out Monday.
In his weekly address, Mr. Obama made the case that the federal government has the money to invest in infrastructure, education and other priorities because of shrinking deficits, though he also is calling for tax hikes on the wealthy to fund his desired $74 billion increase in spending. His budget also would undo the automatic cuts known as sequestration, paving the way for even higher spending down the road.
It’s a certainty the president’s budget will go nowhere in its current form, but by doubling down on more government spending the White House has set up a vicious fiscal fight with the Republican-controlled Congress.
“We’ll help working families’ paychecks go farther by treating things like paid leave and child care like the economic priorities that they are. We’ll offer Americans of every age the chance to upgrade their skills so they can earn higher wages, with plans like making two years of community college free for every responsible student. And we’ll keep building the world’s most attractive economy for high-wage jobs, with new investments in research, infrastructure, manufacturing, and expanded access to faster internet and new markets,” Mr. Obama said Saturday, previewing his budget. “We can afford to make these investments. Since I took office, we’ve cut our deficits by about two-thirds — the fastest sustained deficit reduction since just after the end of World War II.”
Deficits have indeed dropped considerably over the past several years, but the national debt continues to rise. It stood at $10.6 trillion when Mr. Obama came into office.
It now is over $18 trillion.
Bragging about cutting a deficit of $1.7 trillion to $438 billion is weird - especially since he ran trillion dollar deficits for 5 years. It wasn't cutting spending that brought down the deficit, or even tax increases. It was increased economic activity despite the impediments the administration placed in economy's way. Now, after 6 years of no growth of slow growth, pent up demand in the economy is creating wealth, which increases tax receipts substantially.
The president's plan to tax the college savings plan known as 529's has been withdrawn, which means there's no way he can claim that his spending won't add to the deficit. But the president is less interested in getting his proposals passed - they don't have a chance - than in picking a fight with Republicans. This is a president that thrives on class warfare and he thinks he can score points against the opposition by claiming his proposals will help the Middle Class. He's also betting on the idea that Americans don't care much about the deficit anymore.
Instead of playing games. the president should be proposing ways to create good jobs that would benefit the Middle Class far more than the measly tax cuts he is proposing. But that would take a belief in the free market system - something no one thinks the president is capable of.