The next president is going to have a very difficult time putting our fiscal house in order: The federal budget deficit is at about $9 trillion and that doesn’t include unfunded entitlement obligations (Social Security and Medicare) that total up to about $73 trillion. This brings me to the other pair of questions that goes unanswered on liberal blogs when I ask them: When baby boomers start to retire en masse and they start using the services that were promised to them, how are we going to pay for them AND for the universal health care for every citizen in America that liberal Democrats pine for? How high are taxes going to have to go? I have never gotten a satisfactory answer to those two questions.
In U.S. News, James Pathokoukis noted the plethora of government programs that Obama wants to implement if he becomes president. Obama, “wants to reduce carbon emissions by 80 percent through a cap-and-trade system, proposes creating a ‘credit card Bill of Rights,’ advocates expanding the Family and Medical Leave Act, and, of course, touts a healthcare plan that would get the government involved in the sector as never before.” I don’t know about you but that long expensive list doesn’t seem like its going to fit Obama’s well known promise of not wanting to increase the deficit.This all seems like a lot of false promise and lot's of "hope."
If one of the Democrats do indeed get into the oval office in 2009 and they raise taxes on a weak or slow economy, they are going to find that all of their pet progressive programs are going to go up in smoke: There is a danger that raising taxes while the economy is in a slump may not only reduce revenue, but also kick start the sort of dreaded stagflation that haunted our country during the 1970's. There is one thing that was well illustrated by Bill Clinton in 1997--He cut capital gains taxes from 28% to 20% and he ended up with a budget surplus. It seems that the current crop of Democratic candidates have forgotten that bit of his presidency. Why? Are they so consumed to pander to populist sentiment in their zeal to get elected that they will say and do anything? Even
populist politicianscan become unpopular when their big government works projects don't work out as planned. They would do well to remind themselves of this well worn fact.