WaPo: Obama abdicates on the budget

WASHINGTON POST, 4/24/2011 by Robert Samuelson (Hat tip: John H. Detweiler) - "If you’ve wondered why it’s so hard to subdue budget deficits, you should consult a new study from the Congressional Budget Office called “Reducing the Deficit: Spending and Revenue Options” (free at www.cbo.gov). You’ll learn from its 240 pages that the deficits definitely can be curbed. The CBO presents 105 policies (it doesn’t endorse them) that would shrink deficits by trillions of dollars over the next decade. You’ll also learn — surprise! — that most choices are political poison. ∴ Suppose we increased the federal gasoline tax by 25 cents a gallon, from 18.4 cents to 43.4 cents. That would raise $291 billion from 2012 to 2021, estimates the CBO. Or we could advance the ages for early and full Social Security benefits; one suggestion is to raise them (now 62 and 66) by two months a year until reaching predetermined targets (say, 64 and 70). The CBO reckons the decade’s savings at about $264 billion. How about slowly moving Medicare’s eligibility age from 65 to 67? The savings: $125 billion. ∴ Are we finished? Nowhere near..." Read more at the Washington Post... Read More......

Was America Built on a House of Cards?

Excerpt from Government of Deceit by Pat McConnell, Chapter 37, Page 206:

"Was Twentieth Century America built on a mountain of debt?

Federal Government infrastructure
How about the interstate system with all the bridges? Were they ever paid for? We are now in need of repairing or replacing some bridges, but did we ever pay for them the first time?

The Interstate Highway system is the largest public works project ever completed in the U.S. Its construction started in late 1956 and continues today. The original system was budgeted at $25 billion and was to be completed in 12 years. However, the originally planned interstates were completed in 1992, taking about 36 years to complete. Alas, the costs grew, and soon the price tag ended up at $114 billion (adjusted for inflation, the cost might approach $1 trillion.) The actual funding of construction was 90% federal and 10% state. The feds financed the 90% with bonds to be paid back through federal gas taxes.

Only for the years 1956, 1957 and 1960, did the Federal Government balance the budget. Examining the deficits for the years thereafter; it is obvious that when the bonds came due, they were just paid off with new borrowing. So, in essence, we never paid for the interstate system. In addition, we have been paying interest on the interstate system ever since. Now, if the Interstate Highway system is the largest public works project in our history and it is not paid for, I think that a logical conclusion could be reached that little of our Federal Government infrastructure was paid for after about 1930, when Deficit Spending became a national addiction. Oops."

Mr. McConnell continues the chapter with state & local government and John Q. Public's addiction to credit; though hardly comparable to the fed.

Doesn't Rep. DeFazio (D-OR) serve on the Committee on Transportation and Infrastructure? Read more about Government of Deceit. --bc Read More......