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THE CONSERVATIVE REVIEW - December 18, 2009
Fat City
by Pat Buchanan
"It's time to stop worrying about the deficit -- and start
panicking about the debt," the Washington Post editorial
began. "The fiscal situation was serious before the
recession. It is now dire."
The editorial continued:
"In the space of a single fiscal year, 2009, the debt
soared from 41 percent of the gross domestic product to
53 percent. This sum, which does not include what the
government has borrowed from its own trust funds, is on
track to rise to a crushing 85 percent of the economy by
2018."
What are the risks of an exploding U.S. public debt?
The Chinese, Japanese and Arabs still buying that debt
will begin to suspect they are holding onto paper on
which the United States will default, or will cheapen
by inflating its currency -- as the Germans did in 1923
to avoid paying war reparations.
When they do, they will stop buying U.S. debt and start
dumping. The Fed will then have to raise interest rates
to attract borrowers, throwing the economy into a
tailspin.
Is Congress even aware of what is happening?
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Harry Reid is talking about doubling Medicare rolls to
include folks 55 to 64. Facing a second straight $1.4
trillion deficit, Congress is moving to raise the debt
ceiling by another $1.8 trillion.
And the lead story in the Post Monday began:
"The Senate cleared for President Obama's signature on
Sunday a $447 billion omnibus spending bill that contains
thousands of earmarks and double-digit increases for
several Cabinet agencies."
Total cost of the Senate bill passed Sunday was "$1.1
trillion, including average spending increases of 10
percent for dozens of federal agencies."
Ten percent hikes for federal agencies? What is going on?
Democrats say the money is needed to make up for the
neglect of the George W. Bush years. But the Bush years
were the fattest years for federal social spending since
the Great Society.
Sen. Dick Durbin says the spending is necessary "to keep
cops on the street... so that families feel secure.
... Money spent to help our first responders, firefighters
and policemen is a critical investment."
But aren't cops and firemen a state and local
responsibility?
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"It is business as usual, spending money like a drunken
sailor," said Sen. John McCain. "And the bar is still
open."
But when sailors get drunk and spend crazily, they are on
shore leave and spending their own money. When they get
back aboard ship, they sober up and shape up, and do the
vital work they enlisted to do.
These congressmen never stop bingeing. They are addicts.
They are alcoholics. And they are spending our money.
According to Taxpayers for Common Sense, there are 5,200
earmarks in that one Senate bill, which averages out to
12 pork projects for every House member -- and 52 for
every senator.
What is going on in Washington?
Democrats are following the Rahm Rule of White House Chief
of Staff Rahm Emmanuel. "Don't allow a crisis to go to
waste. ... There are opportunities to do big things."
The Party of Government is exploiting the economic crisis
to grow the government. And from the standpoint of self
interest, this makes sense. Most government employees are
Democratic voters, as are most beneficiaries of government
programs.
Moreover, Democrats have to get the money out the door
before the midterms, where the party is going to take a
bath and lose power.
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How else to explain this lead story last week in USA
Today:
"The number of federal workers earning six-figure salaries
has exploded during the recession. ...
"Federal employees making salaries of $100,000 or more
jumped from 14 percent to 19 percent of civil servants
during the recession's first 18 months -- and that is
before overtime pay and bonuses are counted.
"Federal workers are enjoying an extraordinary boom time --
in pay and hiring -- during a recession that has cost
7.3 million jobs in the private sector."
When the recession started, the Defense Department had
1,868 civilian employees earning $150,000. Defense now
has 10,100. The Transportation Department had one person
earning $170,000 when the recession began. Transportation
now has 1,690 employees earning above $170,000. Recession
in America means boom times in D.C.
The financial crisis that almost sank the capitalist system
was the work of Washington and Wall Street. The Fed created
the bubble. The White House and Congress goaded banks into
making all those subprime mortgages. Fannie and Freddie
bought up the lousy paper and turned it into securities.
Wall Street banks bought them up and put them on their
books as Triple A assets. Federal regulators looked the
other way.
Yet happy days are here again on Wall Street. And
Washington never saw better times, with federal workers
now earning, on average, $31,000 a year more than workers
in the gutted private sector.
Is this the government the Founding Fathers dreamed of --
or is this the kind of arrogant government they took up
arms against?
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