Our unfunded-entitlement train is careening down the tracks about to tip over, but the conductor is lecturing us about staying in our seats until we come to a full stop.
That, among other things, was one of the important problems with the president’s State of the Union speech. It was also what was wrong with the GOP response delivered by Rep. Paul Ryan. Neither party is telling the American people the truth about the coming entitlement crunch which threatens not only our fiscal solvency, but our national security, our economic vitality, and ultimately, our way of life. Every year we delay the bitter medicine we must take to get our fiscal house in order adds trillions in unfunded debt to the entitlement burden we already carry.
We expected President Obama to downplay the problem. He’s got a re-election campaign to win and the hugely unpopular entitlement cuts and tax increases that are going to be necessary to address the problem would be his doom if he proposed them. There were exactly two paragraphs in the president’s speech that dealt with this nation-threatening crisis – as if it should be treated as an afterthought rather than as the 3-alarm fire it is. What’s worse, the president made it seem as if fixing our entitlement problems will be a lot easier than it is surely going to be.
He claimed that Obamacare would “slow these rising costs” for Medicare – an extremely dubious claim unproven by the facts – while assuring seniors that we must “strengthen” Social Security without “putting at risk current retirees, the most vulnerable, or people with disabilities; without slashing benefits for future generations; and without subjecting Americans’ guaranteed retirement income to the whims of the stock market.”
In other words, some day in the future, a president is going to wave a magic wand and the trillions of dollars of Social Security unfunded liability is going to disappear. No one suffers. No one gets hurt. Presumably, the “rich” will take a hit, but then no one really cares about them.
Newsflash: All the easy fixes for our entitlement nightmare have already been tried several times. We’ve raised the retirement age, raised the eligibility age for Medicare, raised Social Security and Medicare taxes – doubling them over the last 30 years. We’ve fiddled, we’ve tweaked, we’ve performed all the dishonest accounting possible, hiding the truth from the American people for as long as we could, and yet – here we are at the gates of fiscal hell, the devil is opening the door and there’s nowhere to run.
Meanwhile, the GOP is riding high at the moment and doesn’t want to sour the mood of the voters with blood curdling tales of $100 trillion plus in unfunded liabilities for Social Security and Medicare. But that’s the reality of our situation and someone, somewhere, somehow is going to have to take the bit in their mouth and lead us out of this house of horrors we’ve constructed for ourselves.
Rep. Ryan, whose “Roadmap” at least offered an alternative to business as usual, was strangely quiescent about the entitlement mess. Not once in his response to the president’s speech did he mention Social Security or Medicare. Ryan at least had the courage to point out that we were in a major crisis headed for fiscal disaster, but the man who has offered a politically poisonous but realistic alternative stopped far short of endorsing what he so bravely put forth just a few months ago.
Cosmetic gambits like “spending freezes” and “doc fixes” can’t even begin to address the danger. This is political gamesmanship and it should anger us that the politicians know it but do it anyway. It’s not that the crisis is hidden, or has come upon us suddenly. We’ve known for decades where we were headed, but Washington chose the easy way: the politicians ignored the problem, kicking the can down the road, assuming they would be well into retirement — living off their extravagant congressional pensions — before history forced our hand.
"Dueling speeches … both ignore a central problem" because there were no dueling parties. It was a disgusting spectacle of REGULATED standing ovations for the crook and impostor by his 535 accessories belonging to the two wings of the same party.
The spectacle on pare with the Soviet style standing ovation to Brezhnev or Stalin. Shame on you, America! That is, shame on us…
It was particularly grotesque when some of so called "conservative opponents" conveniently uttered a word "Constitution" (e.g. Michelle Bachmann, addressed here)
http://www.resonoelusono.com/Bachmann.htm
Alex:
You hit on the 3 most important aspects of this mess…
#1 – Obama is indeed a crook and an imposter.
#1 – Re: 2 wings of the same party. and the coreographed applause…
#3 – Shame on us because we are a nation of imbeciles who let this happen.
I agree, re: Michele Bachmann, I was looking forward to her rebuttal, some rebuttal, it was as tepid. Paul Ryan's..
1. Obama is a former employee of the CIA
2. Obama is the greatest president that has ever been in the White House since former president Bill Clinton.
3. Obama has a very highly intelligent wife that is by his side.
4. Chicago is Obama's click
5. Obama will run another term and do very well as a 2 term president.
http://www.youtube.com/watch?v=n6g0OtgI5Ds
The Religious Motivation for Suicide Bombers:
First of all, for the suicide-bombers they don’t think of themselves as commiting suicide.It is dying fighting for Allah,totally different.Suicide for them is if you kill yourself over economic problems,or a bad love affair.
There are political reasons for them to kill but the decision to kill yourself in the process has a religious basis.
Already in Iraq more than 600 Muslims have blown themselves up in the name of Allah with more than 100,000 innocent Muslims killed.Approximately 15% of Muslims in the world or 225 million of the 1.5 billion in all support the terrorists.
Find the rest of this comment on our NEW ANTI ISLAM WEBSITE:
http://www.antisharia.com/2011/01/27/the-religiou…
What the f#%&@ do suicide bombers have to do with America's economy?
They have a lot to do with it because if they hit the New York Stock Exchange & Dow Jones stock market in NY city with a nuclear weapon then my friend there will not be a economy to spend money in at all.
Yep. And if terrorists hit Porky's Steak-n-Shake, then my friend there will be no more burgers and shakes. And if the sky turns green and leopards fly out of tupperware tubs….
What the government is going to do is keep printing money in order to pay for the entitlements. The result will be that seniors will take home a social security check but it won't be worth anything because of inflation. Nobody will stop it because no one will cut entitlement programs because then they won't get elected again.
To not actively challenge government redistribution based on needs, and defend market redistribution based on abilities, is to simply try to be the last to be eaten. Because the arbitrary redistribution that ensues when government bureaucrats confiscate the wealth produced by people of extraordinary ability, and allocate it based on wherever they identify “needs,” takes away the incentive to work hard from both the givers and the recipients – it is a recipe for economic stagnation. Unchecked, it is a recipe for economic collapse. If America slides into the nightmare Ayn Rand imagines in Atlas Shrugged, it will be because businessmen didn’t stand up for these principles of capitalism that have made America the wealthiest, most creative nation in the world. Only naive fools would expect the politicians to stand up for the principles of capitalism and mean it.
Too many businessmen (and women) have signed on to the crony capitalist approach to dealing with the government. They probably figure that they will be able to survive along with the big time government people while the average citizen takes it in the shorts.
This is why the small businesses get condemned while major companies such as General Electric get applause from WDC.
There will be no Obamacare repeal, no significant spending cuts. There is no Obama centrist shift. It is all smoke and mirrors. Vince Lombarbi once said; "Fatigue makes cowards of us all" and this is indeed true. The democrats will obstruct all Republican attempts against Obamacare (for example) in every way possible with the MSM on their side, the RINOs will be the first to cave, then a large number of republicans will "compromise" as they will spin it, and Obamacare will not only survive, but be permanent – and they will all congratulate each other and raise the debt ceiling so we are 15 trillion in debt, and then they'll raise taxes, and that is the way it will be. Oh yes, then the politicians will all give themselves a cost of living raise.
In case you haven't noticed, McCain has already caved in.
What does all this mean? The Social Security Trust Fund was raided back under Lyndon Bayne Johnson's watch (a Democrat) and replaced with IOU's…Now they tell us the SS is going broke, meaning there is less being paid in than is being paid out…Then just think of Welfare, many of these people have paid nothing in, unlike the SS taxes leveled against wroking people; they have not even paid taxes. I for one would like to see the figures for both Federal and State Welfare spending. Would be a very interesting argument.
The national debt of the United States is costing the American taxpayer $4 billion, per day (some $1.5 TRILLION) per year. As much as I liked Paul Ryan's ideas, they weren't enough. We have to cut enough from the federal government so that the daily cost of the debt can be paid, with money left over for the legitimate functions of government … national defense, foreign policy, and the regulation of interstate commerce. No more.
The only other alternative is to make America business-friendly, again, bring back the manufacturers, and to tell the Chinese and everyone else what they can do with their treasury bonds. I know what this means, by the way.
America can't afford anything else.
I would be interested to hear what you think the fallout from all these cuts will be. It's all well and good to prescribe them; another to deal with what happens in the meantime.
After the "irrational exuberance" of the bubbles we've been through, I do think we have to get used to doing more with less. We have to completely revamp our defense model to 1. Get out of the wars and cut down our overseas bases. The world can police itself, now. 2. Concentrate on protecting our sovereign shores 3. Deal with the idea of terrorists/drug cartels/ rogue states having WMDs.
In the process of "doing more with less", 4. Review all current federal statutes, isolating those which are not based on a power delegated to congress by the constitution and repeal them. (hint, it would be a lot). Comment, on number 1, bring everyone, say again, everyone home, close down all overseases bases, not one grunt or swabby over the pond(s), Because then, everyone will leave us alone, everything will be alright.
And let's use those forces on our borders, while we're at it, Coyote. Let's make the attempt to cross our borders illegally one of the most dangerous things that anyone could conceive of doing.
5. Another use for our returning forces: Tell everyone drilling for OUR oil to get out, and enforce it with the military. Let's explore for oil, natural gas, coal, and whatever, and drill and extract.
6. Build more refinieries and steel mills. Build nuke plants for power. Open Yucca Mountain. More to come …
I'm all for more refineries & mills and repurposing troops if need be, but how about making it illegal to employ illegals? I'm pretty sure there's already a law about that but you'd never know. A small portion of people make more money if they use cheap labor, just as a small portion of people get wealthy when they send their plants overseas for cheap labor.
It's already illegal to employ illegal aliens. That's why theyr'e called "illegal". However, the current situation will continue until we have enforcement, and everyone's afraid of the growing power of the Hispanic vote.
Also, any manufactured good that can be used in the production of war materiel is vital to our national security. Therefore, the companies that make these goods should be required to have their factories in this country, using legal American labor. Let them move thier corporate headquarters if they want to, but the factories stay here.
Stephen, you make some good points. But the thing about illegals is that they're not gonna come here if there's no jobs for them. You talk about policing the border; how about enforcing the law with regard to employers? See, that's what no one wants to talk about–or when they do, they make excuses. It's easy to frown at illegals. Not so easy to call out those who provide them with jobs.
It is already illegal, but it is rarely enforced. That is one of the targets of the Arizona law that ended up in the courts. The feds don't want the law enforced, or they would be doing it themselves.
What exactly do you think will they do? Oh you mean like what they already do…send three people over to blow something up? Yeah, we should send a few hundred thousand troops SOMEWHERE to deal with that…great idea.
More like, "bye bye, imaginary gravy train. Hello, reality we've managed to ignore for half a century."
America has to become "just another country" to survive.
Then it won't survive.
Social Security, Welfare, Medicaid and Medicare – all have to go. Too bad, so sad. "Put not your trust in princes". Pain now versus collapse now. I have to believe that we can stand the pain now.
Unfortunately Rand, Ryan, Michele etc. are a decade or more too late.
Prediction; we will keep printing money until it doesn't work.
At which point “It means fasten your seat belt Dorothy, 'cause Kansas is going bye-bye”
They are also a dollar, or probably much more, short. Need to go through federal law, and work to repeal any power of Congress, that is not delegated by the constitution.
all the same big problems with "social" and "medical" we have in Germany.
And there is no political who says STOP.
What they both did'nt say was this " CODEPINK ROCKS * @
I'll go along with that if we provide that the 40% who now pay no income, do so. In short, tax the "poor" if we will. (hint 40% is a lot)
should have read, "who now pay no income tax".
40%? Source, please?
Congressional Budget Office, Urban Brookings institute. Actually, it is between 38-40%. Now, before you get all pendejo on me, I didn't say that they didn't pay "any" taxes. I said they didn't pay any income taxes = zero income tax liability.
And there is always the argument that because that the "poor" who reportedly include most of those with no federal income tax liability pay payroll and excise taxes then their total effective tax rate is higher than other groups. Well, the problem with that is that most excise taxes are on good purchased, generally a choice. Most importantly, however, is that "payroll" taxes are for social security. This is a retirement program originally, and it is now funding, or is supposed to be funding, all sorts of other goodies, some of it means tested. These people, the "poor" often have no other "retirement", so they rely solely on social security. Arguably, they should pay for more of it. Doesn't change apples and apples, they still pay no income taxes, and it is about time they had "some" skin in the game.
Obama scares me!! I hate hearing him refer to the White House as “my White House”. It belongs to US, the citizens of America. We allow the elected President to live there for a term or two. Remember how the Clintons trashed it when they left. They should never be allowed back in!! Obama brags about not being cozy with big oil folks!! Where was this fundraiser when he referred to bitter PA. residents? Does John Paul Getty ring a bell????? Big oil!!
Did you know that Obama worked for the CIA.
So how is he so far to the left as they calm ?
http://www.youtube.com/watch?v=n6g0OtgI5Ds
http://www.youtube.com/watch?v=seEE4bKVhHo
Though I may not agree with everything he says (who among us, except lefties, are in lockstep? None, I hope) but, Rand Paul, in his response to SOTU, at least touched on the issue when he cited the coming Baby Boom Crush on SS. I sincerely hope that Ryan, Bachmann and Paul put their heads together to come at these problems from their divergent perspectives. Along with other like GOP members and reasonably sane Dems (yes, there are a couple now out from under Pelosi's thumb), no RINOs allowed!
http://www.youtube.com/watch?v=seEE4bKVhHo
watch you might learn something that will tripp you out because most american people who voted for Obama never knew this information.
I was not one of them that voted for him @
What, you think you've stumbled on something new to those here? Enough trips me out without having to go over old news.
I know more about ring wing Michael A. Hoffman crap then you can shake a stick at.
Shaw why did you join the GRU last year and became a sleeper mole for the Soviets ?
Glad you used progressive. Nothing clues me in better than a person willing to label him/her self. Thanks.
How do you know what i am you communist mole !!!!
You are a right wing bigot !
It's happened again. Another apparent lefty shows up to make inane comments (Porky Pig) who seems to recognize problems with Islam. Ah well, it's better to be amazed than bored, I guess.
There you go again (ha, I love that line) thinking you are presenting "news" with old Youtube clips. What are you, master of the tube? When do you get time to go to school? What's your real name? Cenk? Oh, I forgot, when did I mention SP?
Shaw you are the communist master of jiffy lube !
Now you have really proven you ain't got a clue. You're tuned out as of now.
That is what a spaced out communist like you would say. Shaw how was the CPUSA meeting last week that you was at.
Word on the street is that Sam Webb would like you to become the new chairman up in New York is that true ?
This is an excellent article and I hope FPM posts more like it. I may be liberal but our spending concerns me greatly, and Mr. Moran is right when he predicts "the forecast calls for pain." Clearly there HAVE to be cuts made, and we need someone who is willing to pay the political price for it. One reason we're so screwed is that we have politicians who make promises knowing they'll be gone when the bill comes due. SSI, Medicare, Defense and defense-related spending need to be looked at. Subsidies for things like the oil business need to be taken away and we'll need to feel the pinch at the pump–the only way to incent industry to come up with alternatives. China is already out front on this. We need to be in that position.
http://www.youtube.com/watch?v=E7gVp3diPbI
watch Sarah Palin speck out and show that she wonts the GOP to connect with the *American Nazi Party*.
Tea Baggers of course.
Oink @
We're in big trouble with debt, yet our leaders are not attacking the problem. We're compromising our efforts to repair an extremely dangerous condition. The ONLY solution is to make deep cuts in the spending and that includes taking on public unions. When states file bankruptcy there will be a mountain of proof that we cannot sustain this level of spending. How can we not expect a deeper depression than the world has ever known? Why did it take so long for the government to recognize the unsustainable housing bubble when I and my friends realized it's obviousness even before 2005? My government is completely out of touch or intentionally wrecking America. I hope we can redouble our efforts to get rid of all stale politicians in the next election. Obama must be fired!
If the baby boomers get cheated on social security they need only look back to see that there too few descendants to pay into the plan . Thus who is responsible for lack of funding? It was the baby boomer who decided that children would interfere with their financial aspirations or careers. So they had none. On top of that the jobs are becoming more and more scarce. . There will be no jobs that they can get to take themselves to age 70 when they can get social security. OH then we must let more illegals in. But except for their employers they are a net drain on the middle class. The boomers will be paying them not as the boomers had hoped.
How do you know i am a lefty or a piggy or a diggy ?
Of course we have an entitlement bust in the works; isn't that the idea of the Marxist "Cloward-Piven Strategy"? The very thing which even most Conservative pundits are choosing NOT to aknowledge is being implemented by The Hussein Cartel.