Tuesday, August 02, 2011

Fiscal irresponsibility 13: Obama on debt limit, 2006

Nice video here. Who said that " raising America's debt limit is a sign of leadership failure" in 2006?

"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the U.S. Government can't pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies...

Increasing America's debt weakens us domestically and internationally. Leadership means that "the buck stops here." Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."

- Sen. Barack Obama (D-IL), March 20, 2006

Meanwhile, here's another good graph, posted by my favorite climatologist who has a knack in economics too, Dr. Roy Spencer, in his blog post, The Debt Crisis: Compromise is Not an Option.

Dr. Spencer wrote,
... Unfortunately, just like the family that could not rein in its spending, so much of our population has become dependent on government handouts (which means, taking from those taxpayers who help keep our economy going) that it will be difficult for politicians to do what needs to be done to put us back on a path toward prosperity.

We must reduce wasteful spending, and we must reduce the governmental tax and regulatory burdens on businesses which are keeping those businesses from growing. Politicians must make tough decisions that will save the country without regard for whether they will be re-elected or not.

The problem cannot be fixed by “taxing the rich more” because (1) there is not nearly enough money there to fix the problem, and even more importantly, (2) unless there is at least some incentive for people to financially benefit in proportion to their good ideas, there is no motivation to take the risks involved in bringing new and better products and services to market. After all, most of those attempts fail, and people who want more of what “the rich” have, are not willing to share in the failures of those who tried and failed.

Living within one's means. Modesty in lifestyle. Humility to recognize the unsustainability of the spending spree. These things are lacking in many governments, poor and rich alike.

BIG governments, whether socialist or democratic (or republican) simply create big problems than solutions.


Lardy said...

Hi Noy. That last comment was supposed to be for this post of yours. Sorry.

Lardy said...

Some more historical context regarding Sen. Obama's debt ceilling stand in 2006. President Bush and the US Congress were negotiating for the 4th time in 5 years to raise debt ceiling. By the way, Bush assumed office in 2001 when the US debt was only $5 trillion. I have read closely the spending debate. And the Republicans especially their Tea Party base (composed of senior white citizens who do not want any cuts in their Medicare) amplified that entitlements must be reined in (but apparently not their entitlements). Another historical context: Bush expanded Medicare during his term.

Bienvenido Oplas Jr said...

Thanks Lardy. Fiscal irresponsibility applies to both Republican and Democratic leaders. And politicians from other political parties, for that matter. That is why I wrote in the last paragraph,
"BIG governments, whether socialist or democratic (or republican) simply create big problems than solutions."