Democrats carped over the big spending of the Bush administration.  (True conservatives did, too, by the way.)  But when they got the reins, both the White House and Congress, Democrats made Republican spending look positively thrifty.

When they have lots of money, Democrats spend money on all sorts of government programs.  And when we have less money, as in this recession, Democrats spend money on all sorts of government programs.

Rep. James Clyburn (D-S.C.), the House majority whip, said that trying to find greater savings in the budget, which was released by President Barack Obama this morning, wouldn’t help alleviate the recession.
“We’ve got to make some decisions here as to what’s in the best interests of our country going forward,” Clyburn said during an appearance on Fox News. “And I think the best interest is to invest in education, control these deficits, while at the same time trying to get people back to work.”

“We’re not going to save our way out of this recession,” the majority whip added. “We’ve got to spend our way out of this recession, and I think most economists know that.”

But Chuck Bentley, CEO of Crown Financial Ministries, has a different take on the issue.

The government is almost insolvent already because it borrows more money than it takes in. The government is trying to spend its way out of economic trouble.

Washington is not spending cash reserves, its spending borrowed money. We’re borrowing money to solve a problem caused by borrowing too much money. We’re borrowing from foreign sources. Spending is out of control. The only way to fund it is to raise taxes, borrow, or print money. None of those strategies will lead to economic health.

The Democrats are looking at the ends and forgetting all about the means they’re using to achieve them.  Indeed, Obama’s new budget spends a record $3.8 trillion dollars.

The spending blueprint for next year calls for tax cuts for workers and business and more aid for cash-starved state governments as well as the unemployed. The jobs initiative largely mirrors last year’s stimulus bill, but is about one-third its size. The president is asking for nearly $300 billion for recession relief and job stimulus.

The budget paints a remarkably dire picture of a federal government that will have to borrow one-third of what it spends next year as it runs a deficit that still would total some $1.3 trillion.

This from the guy who says he’s trying to reduce deficits.  

Please read all of Chuck Bentley’s article.  He goes over his 5 predicted trends for 2009 (which were all very much on the money, so to speak), and he goes over his 5 trend predictions for 2010.  It’s very likely we’re not out of the woods yet, and government isn’t really helping.

Chuck’s advice to Americans, and America’s government, is the same; get your financial house in order first.  Maxing out your credit cards when you’re already deeply in debt, on the assumption that things are going to get better, is a risky bet.  Just ask banks that bought those (now) toxic home mortgage securities.  Here’s his #5 trend prediction:

The mid-term elections will be a pivotal moment for the economic direction of our country. I don’t want to get into politics, but the problem is the U.S. is increasing its debt while people are trying to get out of debt. There are big differences in what people see as the solution. The population is trying to get its house in order while the government tries to spend its way out of trouble. The U.S. dollar has lost value because of government’s fiscal irresponsibility. The government can only get money by taxing, borrowing, and printing money. More programs mean more money is needed to fund them. That means government will print more money and further devalue the dollar. You can’t become prosperous through government spending. Elected officials from both parties treat the dollar as if it were Monopoly money. When taxing and borrowing isn’t bringing in enough money, government will print it. That will lower the value of the dollar, and devalue your savings. Our elected leaders are living foolishly. We should vote for those seeking office who pledge to be good stewards of the money the people supply the government through taxes. They should act as trustees that are committed to protect the people by making sure the government lives within its means. Work with all your power to get the government to live within its means. The mid-term elections will indicate the direction of the country. If we’re not successful in electing good stewards, a very painful correction is coming.

If that correction comes, be sure government will misread the reasons.  Just get educated yourself.

Filed under: DougEconomics & TaxesGovernment

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