Obama’s Fake “Spending Freeze”

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fiat-moneyby Ron Paul

Last week politicians in Washington made a few things clear about how they really feel about the state of the union. First, they are beginning to hear the growing discontent with the size and scope of government and the broken promises that keep piling up. Certain events in Massachusetts recently made that statement loud, clear and unavoidable.

In the face of those events, the powers that be made the determination that some populist rhetoric was in order, and the idea of a spending freeze in Washington was proposed, albeit with several caveats. These caveats to the proposed spending freeze ensure that we are not at any real risk of actually doing anything about spending.

First of all is timing. It wouldn’t go into effect until 2011, which allows plenty of time to increase spending levels quite a bit before they are frozen.

If the administration really understood and cared about our spending problems they would not freeze spending a year from now, but cut spending immediately and significantly. But, spending cuts almost never happen in Washington, and they are not likely now or a year from now – if the politicians have anything to say about it.

The second caveat is the huge areas of the budget that are shielded from this freeze. The entire State Department budget is exempt, as are all entitlements, all military industrial spending and almost all foreign aid.

Fully 7/8 of federal spending is excluded from this freeze, and some areas to be frozen were actually set to decrease, which means a freeze actually guarantees a higher level of spending.

Especially insulting is the idea that in spite of our own fiscal problems at home, taxpayer dollars will continue to be sent overseas in the form of foreign aid where it often does more harm than good. When need is demonstrated to Americans and they can afford it, they can be counted on for a tremendous outpouring of private, voluntary charity to worthy aid organizations, as we recently saw in Haiti.

By contrast, government-to-government aid is taken from the poor by force and too often enriches the corrupt. It is counterproductive and wasteful. But the idea of eliminating, freezing, or reducing foreign aid is not up for serious debate any time soon.

The third caveat is what is included in the freeze that would make it politically impossible to pass Congress, for example air traffic controllers salaries, education, farm subsidies and national parks.

I do not necessarily want a cut in spending in this country – I just want to change who does the spending. The spending should be done by the people who earn the money, if they choose, and on what they choose, without any government interference. That is what makes the economy work.

revolution-manifestoPoliticians should stick to the very limited roles given them by the constitution instead of allocating such a sizeable portion of our capital and intervening through regulations and tax policy. But because politicians have disregarded the constitution, and the people have no idea what rule they will break next, there is already a very real spending freeze underway in this economy, by the people.

If government would stick only to what it was authorized to do, and leave the rest to the people, most of these problems would resolve themselves.

Ron Paul is a Republican member of Congress from Texas

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5 comments
Dale Tims
Dale Tims

Everything needs to start at the top and work it's way downhill (quickly, not taking years to move). Our so-called
president should not be entitled to eat at the taxpayers' expense (he has a very GREAT liking for LOBSTER on a regular basis). The way I Iook at it, we are already giving him a very appropriate salary. If he (they) want lobster every day, let them pay for it, I mean, what are we paying him for? Certainly we should not have to feed them Lobster and caviar when we are eating peanut butter and jelly sandwiches and McDonald's. It IS NOT FAIR. I guess he feels entitled to use our tax money to eat like royalty. Ms. Pelosi has taken over the U.S. Air Force as her private airline. To be ready at her beckon call. Get the TOP Straight and I don' think the rest will really have a problem. Most of us have learned to live with less and they are taking ALL they can get by with.

Walt Hutchens
Walt Hutchens

What's scary about this post is that Ron Paul is a politician who differs from the others only in details. He talks as if deficits were the result of out of control discretionary spending and self-control in Congress would solve the problem: The truth is that over half of total federal spending is for entitlements -- most Medicare, Medicaid, and Social Security. The federal medical programs have been growing at more than twice the rate of inflation and until we do real reform (NOT ObamaCare) that's only going to get worse.

Real reform is going to be painful and if it doesn't create some unemployment AND make a lot of us mad, it'll be a waste of time.

He also skips past the fact that over half of the annual deficit now is due to lost revenue as a result of the current recession. Getting that under control just by eliminating what we think of as federal functions would essentially close down the federal government: Yes, we'd have to zero out the military, get rid of the federal courts, and very much more. No sane person wants to do that.

It is true that we need to rein in the federal government: Diddling in business matters -- nationalizing auto companies, operating the home mortgage market, taking over student loans, and taxing the snot out of anyone who dares to make serious money make EVERY rational businessman fearful of expanding. But fixing this won't save much money in the near future and again, it'll create highly visible unhappiness as union members get laid off, and home prices continue to fall.

We are where we are because federal fooling around got our economy seriously out of whack. But most of the details of that also made us more comfortable, and unwinding it is going to hurt before it makes us better off.

Until we have candidates who can speak these truths, we're not going to get very far.

Frank-O
Frank-O

Is there anything that politicians do that isn't "fake"? I can't seem to think of one single thing.

MichaelBoldin
MichaelBoldin

I thought this really hit the nail on the head and was worth repeating:

"Politicians should stick to the very limited roles given them by the constitution instead of allocating such a sizeable portion of our capital and intervening through regulations and tax policy."

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