Goolsbee says Failure to Raise US Debt Ceiling would Be ‘Catastrophic.’ What a statement. We currently have a Debt Ceiling of 14.3 Trillion Dollars. The fed has been Spending money like Money goes on trees. Wait Paper is made from trees so I guess it does go on trees. Just keep printing it. This is a debt to be put on our Children and Grandchildren.
We can look at the debt at the start of the Obama Administration which on Jan 1 2009 was 10.64 Trillion dollars
Or we can look at the debt limit when Democrats took over the House and Senate in Jan 2007 which was 9.14 Trillion dollars.
Please note in two years the debt only increased 1.5 Trillion dollars and around 900 Billion of that was due to the bailout for the banks. Due to the Sub-prime Mortgage issues that caused many banks to suffer losses.
So we take that starting point of Democrat control of House, Senate and WhiteHouse. No checks on the spending. and in a two year period we raised the debt limit several times. The current Debt the federal Government has on the books is 13.8 Trillion dollars. This is an increase on the Debt by 3.16 Trillion Dollars.
But wait. Much of the money from the first bailout had been paid back much of it was for slight profit. Banks paid back the money they were loaned. I think Bank of America still has some outstanding loans. But they had the biggest amount of money given to them. We recovered much of the money President Bush had for saving the banks returned. Yet that money paid back where is it now. Why did not the total debt drop as the money was paid back? The US Government recovered recovered over 200 Billion dollars of the TARP money for the banks. And this is just a guess at what has been paid back. That means the total Debt since The democrats controlled all branches of the Legislature and Executive branch could be as high as 3.3 Trillion dollars of increased spending in two years. And that is double the rate of the Two years where the Democrats controlled just the Legislature.
TreasuryDirect is the source of the information I am using for the debt. I know the actual debt is a lot larger. But it is good to compare apples to apples.
Spending is way out of control in Washington DC. Where did all this money go? Has it created jobs in the economy? Wait Unemployment levels still above 9%. Has it improved the lives of the People in the US? Expanded jobless benefits now at over 2 years in length. Why because no new jobs have been produced to get the American people working again. Where is the money being spent? Has it helped anyone?
So the question is do we need to increase the Debt limit? I know that republicans will increase this debt limit but they need to play hard ball to do spending cuts. Yes people will blame Republicans for all the pain and suffering that is taking place. But our politicians have to start fixing the problems the Democrats of 4 years in control of the Legislative branch have caused. The democrat answer is always lets cut Defense spending and raise taxes. Raising taxes means less money to grow the economy. Means less jobs. The bottom line is we need to get tax cuts to businesses so that the US is not the highest business taxed country in the world. Japan who was the highest just cut business taxes. So US is the highest taxed. Since it is so high maybe that is the reason so many jobs move overseas. Other countries are seeing a growth in jobs why does not the US see the same thing. Will raising the debt limit create jobs in the US?
Washington DC has a spending problem. And it is very obvious the Newspapers or should I say the Democrat Press Corp is keeping quiet about it. They just want to keep we the American people in the dark. Think about the information I have presented. There are always excuses of why spending and bailouts going to political supporters. And that is an entirely different blog for another day.
Remember it is job creation that will increase revenue to the federal government. It is not increase in the tax rates.