“I wish President Obama and the Democrats would explain to the nation that the federal budget deficit isn’t the nation’s major economic problem and deficit reduction shouldn’t be our major goal. Our problem is lack of good jobs and sufficient growth, and our goal must be to revive both,” he writes. “Deficit reduction leads us in the opposite direction – away from jobs and growth. The reason the ‘fiscal cliff’ is dangerous (and, yes, I know – it’s not really a ‘cliff’ but more like a hill) is because it’s too much deficit reduction, too quickly. It would suck too much demand out of the economy.”
He continues: “The best way to generate jobs and growth is for the government to spend more, not less. And for taxes to stay low – or become even lower – on the middle class. (Higher taxes on the rich won’t slow the economy because the rich will keep spending anyway. After all, being rich means spending whatever you want to spend. By the same token, higher taxes won’t reduce their incentive to save and invest because they’re already doing as much saving and investing as they want. Remember: they’re taking home a near record share of the nation’s total income and have a record share of total wealth.)”
In a moment of rare candor, a prominent Democrat economist has betrayed all the lies Barack Obama has been telling for years.
If Reich is right, and unlimited, unbridled deficit spending is good for the economy, how does one explain the absence of recovery after four years of unprecedented borrowing and spending? He doesn’t – other than to suggest government isn’t really borrowing and spending enough.
Meanwhile, Obama, you may recall, opposed raising the debt limit while a member of the Senate under the leadership of President Bush. He ran for the presidency in 2008 pledging to reduce the deficit by half in his first term. Instead, he increased borrowing more than all other presidents in the history of the republic. Why was borrowing excessively bad then, but good now?
Yet, House Speaker John Boehner has the power to stop this borrowing-and-spending frenzy with one vote of his united caucus. Instead, he has already signaled, in the strongest way possible, he has no intention of doing that. In fact, he is currently attempting to whip his fellow Republicans in line to accept more of the same – for as long as the eye can see into the future.
Ordinary Americans are smart enough to see through this scam. Every poll shows overwhelming majorities of Republicans, independents and even Democrats opposed to raising the debt limit, again, and continuing the profligate government spending that has characterized Obama’s first term.
It’s just that Washington isn’t listening.
Americans understand jobs are created and economies are turned around when the private sector is encouraged to invest in new businesses and expanded businesses rather than make-work jobs and dependency-creating programs by government.
With advice like Reich is offering, America is headed for a crash.
There’s only one campaign to stop what appears to be the inevitable hike in the debt limit that will allow Obama to fund Obamacare, more “stimulus” programs, increase entitlements, make more Americans dependent on food stamps and continue the fraud, waste, abuse and corruption in Washington.
It’s called the “No More Red Ink” campaign. It’s not about convincing Reich he’s wrong. It’s not about convincing Obama his policies are wrong. It’s not about convincing the major media they are wrong. It’s about convincing Republicans their rhetoric is right – and that it’s time to live up to it.
I ask you to join the campaign that has so far generated more than 1 million letters to House Republicans urging them to hold the line on borrowing and spending by freezing the debt limit right where it is.
It’s the only chance America has to begin returning to constitutionally limited government and start righting our national economy.