Do We Need a National Commission on Fiscal Responsibility and Reform?
by Gary WolframThe President’s National Commission on Fiscal Responsibility and Reform is what everyone really knows it is—a bipartisan group of former and current political elites that will listen to hours of testimony by a select group of witnesses in order to create a report that will justify a tax increase for which there does not exist political support. The fact that the commission is being created by Executive Order rather than by congressional action tells us what the expected conclusion of the commission will be.
We do not need another commission to know that decades of programs that tax those who work in order to provide benefits to those who are in political favor has led to the point where the promises made to millions of Americans cannot possibly be met. To quote from the Social Security and Medicare Board of Trustees 2009 Annual Report: “Projected long run program costs are not sustainable under current program parameters.” This is government-speak for: “the jig is up.” The Social Security cash flow will be negative by 2016, at which time the baby-boomers will start to retire and things go south ever faster.
To again quote from the report: “Medicare’s financial status is much worse…Medicare already runs cash flow deficits…For the third consecutive year, a ‘Medicare funding warning’ is being triggered, signaling that non-dedicated sources of revenues—primarily general revenues—will soon account for more than 45 percent of Medicare’s outlays. A Presidential proposal will be needed in response to the latest warning.” We don’t need a bipartisan commission to tell us what the problem is. Social Security and Medicare have total unfunded liabilities in excess of $100 trillion. We need Presidential leadership that will address the spending problems that are the result of a government that has been shorn of the limitations of the 10th amendment.
Our budget crisis is a crisis of responsibility and a government that no longer is bound by enumerated powers. Friedrich Hayek wrote that a free society probably demands more than any other that people be guided in their action by a sense of responsibility. Rather than letting the system of markets and family satisfy our retirement and health care needs, we have instead created a government retirement program and two government health insurance companies that make up an annual expenditure of $1.5 trillion out of the projected $3.7 trillion 2011 budget. Adding on another $250 billion for net interest on the national debt, and we know what the problem is.
Raising taxes to sustain government transfer programs is not going to solve our budget crisis. Indeed, this is how we got into the problem in the first place. In 1850, Bastiat wrote in The Law that a just government is based upon our natural right to self-defense. An unjust law is one which violates this natural right, by taking the property of one person to give to another. He also argued that once a government engages in what he termed “legalized plunder” several things will happen, one of which is that people will fail to recognize an unjust law when they see it. The government will become, in his words, “that great fiction by everyone tries to live at the expense of everyone else.” We have arrived at that time.
We do not need a National Commission on Fiscal Responsibility and Reform. We need to return to those principles of liberty and responsibility that have resulted in the wealth and social cooperation that we still enjoy. This will include electing representatives that will admit that it is not possible for Americans to retire at the age of 62 with a government pension or to have a government insurance company pay for their medical expenses. We must make the transition to individual retirement savings and a market-based insurance system. This will take strong leadership from our elected officials, not the formation of a commission designed to distract us from the impending difficulties caused by our attempt to use an unbounded government to make us all secure.
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118 Comments
We need this like a fresh case of hemorrhoids and a 80 mile horse ride. These pinkos do not have the sense that God gave a goat.
the deck has been stacked by the commies in the WH…if Congress had a spine they'd refuse to fund any of this stupidity…no money hard to hold meetings….
"The President’s National Commission on Fiscal Responsibility and Reform"
Will this be like the Warren Commission that investigated the death of JFK? The one that had Gerald Ford and Arlen Spinchter on it? Will it be like the 9/11 Commission, that investigated the events leading up to 9/11.
Lordy, I feel safer and much more secure already…………….
Maybe I am behind on my reading but I seem to remember that there was this group of people called senators and representatives whose PAID job it was to make laws including the appropriation of monies for the governance of the nation? We don't need another commission whose members are milking the system what we need is for our elected and paid representatives to step up to the plate and do their jobs.
How much will a National Commission on Fiscal Responsibility and Reform cost?
Seems like as good a place as any to quit spending OUR money.
Sadly, I have always admired Alan Simpson of Wyoming. It is a shame he is allowing himself to be used as a "tool" by Barry, just as Bush is being used as a "tool" for Barry's Hatian mission. It is unbelievable, Barry continues to bash Bush, yet Bush accepted the Hatian gig. That is utterly amazing.
Negatory good buddy…Negatory!
NO!
When an individual gets a wage cut and has a hard time making it do they run off to pay someone to tell them what to do? Not if they have a lick of sense. Cut spending, reduce consumption, dispose of assets and limit liabilities. The 1st choice should not be to raise taxes for the government. Cut staff, reduce real estate costs, reduce bloated wages and benefits, scale down freebie give-aways, eliminate all gov't travel, institute across the board reductions as well as look at qualifiying for any federal programs, stop subsidizing laziness.
Randy.
Apparently we will never get to see parts #2 and #3, eh?………………….
Ever see this video about JFK – http://video.google.com/videoplay?docid=-43150240... ?
You're being awfully nice don't ya think…? lol
Man, that video is an hour and a half. Give me a synopsis…….
PS: Your new meds appear to be helping you.
This is like an alcoholic after a bad hang over saying they're going to "quit drinking," and we know that does not happen. This is a bad idea. All we need is leaders who can lead, and honest with us. Long live the Tea Party.
"step up to the plate and do their jobs"
They're rather use a pinch hitter. Been a long time since they've done anything except strike out or hit fowls.
Obama is Brilliant! He hires two Bozo Clinton Era retreads to tell him to stop spending so much money, but he will wait for 18 months for them to tell him that. IN the meantime…..
Our elected reps are slackers, get to work you bozos! If peole wanted Erskine Bowles as their rep they would have elected him when he ran, but they told him at the polls "we dont want you" and now look what we get, the political class sucks!
We have this commission because hopey knows that no elected politician is going to step on this "third rail". Bowles and Simpson have nothing to lose and they'll get another 15 minutes of fame in the process.
راندي ، بارد فكرة كنت خرجت!
While I was in the military we were briefed and held accountable for any abuse or misuse of the equipment/supplies provided to us. This is because that stuff belonged to the American taxpayers and it was our responsibility to be good stewards.
As Yatali mentioned above, we elected senators and representatives to be RESPONSIBLE STEWARDS of the peoples money. Now the want to "outsource" that job and pay someone else to tell them how to be responsible.
Another example of how Barry has no clue about what he's doing there.
Many connections between CIA/GHWBush and JFK.
This is par for the course in D.C., and for that matter in most big businesses.
Don't have the stones or the brains to make the correct decisions? Hire a consultant, set up a committee.
Once they come up with the results you can gauge public opinion and if it is safe you can incorporate some or none of their recommendations.
Repeat as often as is needed until the public is distracted enough for you to continue on your original path.
I think Bush is doing it for humanitarian reasons… one of which is to protect the Red Cross nurses from Slick Willie's advances.
yeah, that'll happen
Clowns to the left of me, Jokers to the right, here I am, Stuck in the middle with you
Wonderful. A new Grace Commission (1980's) that examines why we are in the mess we're in. HELLO!!!! It's Spending, Stupid! Too much gov't. The only redeeming feature is that we DONT get all the govt we pay for.
My very first college course ever was Prof. Wolfram's 8:00AM Political Economy class. In so many ways (including literally) it was a wake-up call to my 18-year-old brain. I'm happy to see Prof. Wolfram bringing his lucidy and classical Austrian common sense to Big Goverment. Right on!
I don't see why anyone would be worried, after all our own Secretary of The Treasury. Timothy Turbo Tax Geithner has said, the collapse of the dollar is inconceivable.
He knows exactly what he is doing and it isn't good for a free republic.
Another example of Obama's poor ability to be a leader. Instead of making tough decisions, he hands it off to a third party. When tax increases are made, he'll just shrug his shoulders and say 'It's not my fault..It's the Commission!' (Of course, he'll try to blame Bush as well.)
Once again, he chooses to say 'Present!'.
How's that Hope and Change doing?
That’s a great idea, the same group of people that helped give us the CRA, Fannie Mae – Freddie Mac, etc. are going to lead the way to austerity…when pigs fly people! Washington – K-street – Wall Street, all need to be cleaned out.
"Fiscal Responsibility" has no place in the body of Modern Liberalism.
We're going to see tax and spending increases and none of the needed cuts. We're so screwed….
The only thing they need to watch over is Pelosi's trips and bar bills. Do away with some of that and we've got it made.
I just show that former President Bush (Remember when we used to use the Presidents title out of respect) has more class the "THE CHOSEN ONE" ever dreamed of having.
Just have to sit on Pelosi and all of her wasteful spending. That would put us back on track real quick.
Obama is firstly setting up someone else to blame when taxes are raised. He is also going to set up committees, departments, and panels to gain control of policy making that will circumvent the Republican gains in 2010. That is also why we are beginning to see the Executive Order card being played. He needs these things passed before the 2010 elections. When he truly runs into trouble passing things after the elections, he will then destroy and divide the country as much as he possibly can.
Notice how whenever Obama creates some commission to wash his hands, he staffs it with old white guys?
Little off subject, just musing how he'll explain the Hope and Change, after he is gone-
“Let me be clear, without my election there would have been no Hope for the Change that has taken place in this great country. Make no mistake, it would have been business as usual with those fat cats in Washington”.
He would be right for once.
Based on popular knowledge, I think it's safe to say that JFK was gunned down by some lunatic communist simply because he cut taxes.
JFK was supposed to be what Obama is now for the "Progressive" left, and JFK failed them.
Notice the Kennedys that live long, fulfilling lives are all far-left wackadoos, and the one's that actually cared about America died young and unaturally. Thank about it.
Watch the other hand people! The Obamaton agenda will continue as they wait on the report (Soon after the Nov. elections is my guess) padding all the proper pockets to keep as many Dem's in office as possible, then it will be tax hike time (based on the panels findings of course) for the under $250,000.00 or was it $150,000.00 or $100,000.00 or was it $75,000.00 crowd. OH CRAP that us!!!!!!!!!!!!!!
Hope and change my A&&, Pray and VOTE for change in Nov.
I can give them the solution for half the price….STOP SPENDING!!!
Darwidiots don't recognize a need for sense. Cents, yes.
Linked to your post from At The Water Cooler – Currency
Obama was not concerned about fiscal responsibility until he went to China … The country is living beyond its means, we are the consumers and let others do the work, the reality is soon the others will realize they will be better off without us. Our Keynesian stimulus has failed, just like the last time, The money produced in the process has been in vain.
Alan Simpson is further to the left than Erskine Bowles. And that's exactly why Obama picked him. Getting a tax-cut out of Alan Simpson is like nailing jelly to a tree.
It ain't gonna happen.
I'm a bit curious . . how much will this commission cost? I'm sure that there will be expenses (probably millions of $s) incurred by the commission as it identifies a problem that we've already recognized.
I'm sure glad that I won't be footing the bill.
Damn, kicked when I'm down again!!
I respected Simpson when he sat on the Energy Committee. He always treated me well.
What the hell. Our government is going to spend yet more of our money on a commission to tell us that they need even more of our money. Social security is broke, in part, because the monies going into the social security trust fund was drained by Republicans and Democrats alike, and squandered into insolvency.
Now our "representatives" want to stick us with these growing IOU's created by their irresponsibilty and disregard for the people they govern. These same politicians and study groups will undoubtedly recommend placing upon our backs that already festering scab of increased taxation, reducing all of us into second class citizenry.
The time has come to give these politicians our recommendations. Simple to follow, easy to understand: Bend over. We guarantee you, you will get what you then deserve. But wait, we may not have enough boots to do the job. But there is a solution. We can use those shovels from those shovel ready jobs to dig a big deep hole for them, a very deep hole indeed.
Well said!
I wonder how much a 1 month moratorium on gov't travel would save. GoToMeeting is always giving away one month free trials. Just use Promo Code: Fox. Put all that money that was just saved into paying down the debt. It probably will barely dent the interest, but it's a start.
Step 2: cut every government employee's salary by 10%, from Obama down to the rural mail carrier. If they don't like the pay cut, they can find another job. (HA!) Lots of companies across the country are having to do this, so too should our government.
Step 3: End most subsidies-Farms, Amtrak, USPS–if they can't compete in the free market, let them go under. It will make the competitive ones better, and drive down prices. I'm not sure about education subsidies, but i'm willing to take input.
Step 4: End Social Security, Medicare and Medicaid right now. All seniors currently collecting will continue to collect, and FICA will still be taken out of everyone's paycheck. Anyone not currently collecting Social Security, medicare or medicaid will have to find a new retirement plan/health plan. Move in with young'uns, keep working, use the 401(K), whatever. If SS was your only retirement plan, then tough luck. You should have seen it coming. Once the last senior citizen collecting Social security dies, no more FICA. Unused funds go to pay off the debt.
As we all know, it's just a cover for Obama to raise taxes.
What Obama doesn't understand, he will still be blamed, by the American people, for raising taxes.
His fiscal philosophy has been that of a kid with his mother's credit card.
It will be no different this time. He's not accountable to anything this commission suggests. He doesn't have to pay the bills. It's going to be ugly.
The old retreads will try to justify a Value Added Tax (VAT).
I never trust governmental commissions.
Does layoff of 50% of the work force include military personnel?
Should we have military personnel sitting around waiting for the Mississippi to flood so they can go sand bag detail?
Is it necessary or useful to have 100,000 plus military sitting in South Korea and Japan holding the fort down?
[...] difficulties caused by our attempt to use an unbounded government to make us all secure. Email this to a friend | Print | Share on Facebook | Tweet this | // Posted by Editor at 1:13 PM Tagged with: [...]
Those in Congress refused to have a committee, when Obama asked them to do this, so, all on hos own, by way of a much abused EO, Barry set this up, to hide behind.
The Progressive Dem.s & Prog. Republicans ain't gonna do it for us.
Right you are; Simpson was always a squish and never was a GOPer to "respect" !
Both of these men are progressives. That says it all.
It's also Barry just voting "PRESENT"; again.
You just ain't gonna believe this. Obama is related to the Bush family many, many generations ago. I read about it, in a very reputable, extra-carefull editing; "Prophecy in the News" magazine, Dec. 2008.
I don't know if this article is on their web site… http://www.prophecyinthenews.com
This article would make one realize that there is some sort of inter-locking family Dynasty(s) with our politicians.
The article discusses other important political figures as well…
Roger that…and actually as a G.I., General Issue; we could be reprimanded for doing damage to our own selves.
Mr Obama is buying time and waiting for money system to collapse and find a a straw man, scape goat. Then, he will suggest that we have to join The World Money System, so as to stabilize everything. In the meantime, the Greenback Dollar will go out of circulation as it represents God too much. We'll use Plastic Debit and Credit Cards until the new money gets injected into our system….We'll something issued, that will work in for Mexico, America and Canada….Then, a problem will occur as crooks start stealing the cards….So, take a chip implant, and everything will be just fine….nobody could steal your identity….
He needs a crisis for sure….the "seeds" are planted for panic and confusion and then the use of Military Force to squelch the rioting.
Well said!!
congress already refused this and that's why he is useing an executive order a duh.
Money: Oh sure this can be a real complicated subject….Money is the 3rd party in a two-way transaction. Money is the Common Denominator for the value of various goods, services and the payment of taxes. Interest charges are not actually money…It is a charge for the use of money, a rental charge. When money is lst issued by the Fed, it usually carried a small interest charge. No money, actual cash or credit is issued for the interest portion of the debt….The very first lending deal was a scam. A 2nd lending deal went into effect, becuz there wasn't enuff money in circulation to pay off the debt.
Those lenders would end up with the property of the borrower. Our Fiat Money system would work OK if it didn't charge interest and the participants had a high level of morality, and extreme justice for the criminals. Trusting in Gold or trusting in Govt systems is not enough Trust Factor to keep the money system stable..
We have a Congress and a President who has this responsibility. If they are so eager and willing to give up this responsibility why are we paying them. Every incumbent needs to be replaced with average citizens who will do the job entrusted to them. We need to elect average citizens who will be beholden to their constituents and not special interests.
No votes for anyone who has a D or R behind their name. Let's take the country back to its roots and return it to the average citizen.
You see, there's much talk about the U.S.A.oweing China and/or Japan…and these nations are getting upset, that we'll pay them back with de-valued dollars, ok…We owe the Privately Owned Federal Reserve Bank probably 10 or 20 times more than China….So, the Fed is collapsing our system, while they build anew in under-developed countries…and exploit their Natural resources.
Obama, Bush, Cheney, Clinton, etc were all in bed with The Fed….and the Fed & US Treasury linked to Goldman-Sachs who probably has a huge control on Inter-National Shipping, who use "The Law of the Merchants" and supercede our US Constitutional Laws.. They want us Broke!
I THINK OBAMA IS TAKING ALL THIS $$$$, PUTTING IT IN A SUITCASE, AND WHEN THE SHIT HITS THE FAN, HIS GONE. PAYING OFF ACORN, S.E.I.U. BLACK PANTHERS. ETC. IT'S MONEY FROM HEAVEN, SORRY OUR POCKETS?
I'd rather hire Sylvester to watch Tweety while grandma was out of town.
If Fred Smith needed a Commission on International Shipping, I'd expect him to step down. Same applies here.
Of course it is. The biggest lies have the prettiest titles.
I argue that we DO need a budget commission – it is just possible that it will make some meaningful recommendations – but more importantly the country needs to face this squarely. The brigher the spotlight on this topic the better, in my view.
With roughly $950,000 of unfunded public liabilities per family (see https://www.mygovspending.com/beginners/new for a shocking calculator); we're about to find out if a road paved with IOUs leads to serfdom. Apologies to Freddie Hayek.
Spending Freeze!
Creating this commission only fortify what we already know. DC is broken! It will cost tens of millions of dollars and create a 4000 page report just to tell us that DC is broken.
Spending Freeze!
Ouch! I need a Bourbon after that analogy!
The military…the ONE thing these days that the Federal Government is tasked to do by the Constitution and spend Our money on.
And yes…they protect you and me!
We will never know the cost, or the number of people who will be paid to take part…more of the political favors!
We NEED a House and Senate full of men and women that will make spending decisions like we would in our homes and businesses.
Start by cutting the Government jobs!! Obamao says "everyone will have to share in making things better". Unemployment is up…yet there are more government jobs…jobs that NEVER end!
This is typical insane politics–let's make a commission AFTER I submit a budget proposal, and AFTER congress passes the largest spending budget bill ever….This is just his second Executive Order;only three more years of King Obama…Maybe by that time his Kingdom will only include DC…
To the progressives and our Emir:
The party's over
It's time to call it a day
They've burst your pretty balloon
And taken the moon away
It's time to wind up the masquerade
Just make your mind up the piper must be paid
The party's over
The candles flicker and dim
You danced and dreamed through the night
It seemed to be right just being with him
Now you must wake up, all dreams must end
Take off your makeup, the party's over
It's all over, my friend
<instrumental 'the party's over'>
The party's over
<instrumental 'it's time to call it a day'>
It's time to call it a day
<instrumental 'they抳e burst your pretty balloon and taken the moon away'>
Now you must wake up, all dreams must end
Take off your makeup, the party's over
It's all over, my friend
It's all over, my friend
Amen
Yes, cupcake, if you can't identify some waste in the defense/nation building/empire of 700+ bases across six continents, then you are lying to yourself.
Should the military be at Camp Bondsteel in Kosovo to protect the local Muslim population? How bout seven recently occupied facilities in Colombia? You can go on and on.
We already have what we need. It's called the CBO, lets hear what they have to say:
2010 Don't spend any more, We're Broke
2009 Don't spend any more, We're Broke
2008 Don't spend any more, We're Broke
2007 Don't spend any more, We're Broke………
That is some scary stuff there Gregory! We would collectively have to asleep at the wheel and seems we've woken up (most of us anyway), I don't believe it will go that way. Just my thoughts.
Just another example of the pathological liar in the White House. "Hey, I know, the people will think I'm being fiscally responsible if I create a commission, yeah, that's it, they'll never figure it out…" Us common folk can figure this deal out faster and cheaper than some stupid commission. STOP spending, CUT taxes. But no, those idiots think they need a group of idiots to say that because we are too stupid. Fiscal responsibility starts at home, stop the parties, flying around in Air Force One to more parties and signing 3 trillion budgets. Sigh….
This commission is an epic evasion of accountability by the Executive and Legislative branches of the federal government. Or at least an attempt to evade. It won't work.
http://libertyatstake.blogspot.com/
it'll take 2 years to come up with a report. by that time it'll b way 2 late
Check out the following YouTube video done by a group of Tea Party kids. Pretty much sums up the debts Harry, Nancy and BO are dumping on our kids, and some actually understand it! Pretty out there flick and a bit funny. Must be hitting the left in the funny bone as well as you will see from some of the comments.
Name of the video is “ Barack Obama Song – It’s Your Money That I Love”
Link Is http://www.youtube.com/watch?v=iQwyGMkAGbY
Enjoy!
Barackcountdownclock – Not Again In 2010!
Typical. The fool in Washington is setting someone else up to take the blame. Kabuki anyone?
These government commissions, think tanks, study groups … etc. are nothing more than excessive welfare to educated people pretending to do something to earn their tax bilking.
So I guess I’m saying, “Yes, we do need another federal commission; it fits our socialist agenda nicely.” (Sarcasm, for anyone that didn’t catch on)
No.
One is forming now. They will be heard in November.
As a follow up to my answer, NO:
The only commission needed is the one that will investigate and bring forth truth and fact as to why there are 30+ social security numbers as a matter of record relating to Obama, and, why the tax paying legal U.S. citizens are not allowed to have access to any history relating to Obama pre-Jan 21, 2009.
No.
No.
And hell no.
What we do need is for them to stop spending OUR money. Money we don't have. We need the Federal Government to lay off 50% of it's workforce, cut the remainder back to parity with the rest of America, and start eliminating federal burecracies. Start with Homeland Security, the EPA, and a host of other innefectual federal alphabet agencies.
Nathan,…….FYI, farm subsidies have shrunk to the point of being almost non-existent. Act-
ually what happened is the ag sector has experienced fairly severe inflation over the last 10
years & the subsidies shrank by about 50%. At one time appx 1/3 of our income was from
USDA subsidies. We currently receive from 1 to 3% of our income from subsidies. Most of
the USDA budget is for the food stamp program,(old name). Us producers don't qualify for
that money. It goes to your run of the mill welfare mothers. As grain producers, we can live
with out the subsidies, but we won't be able to furnish the hi quality feed to the beef produc-
tion industry. Get ready for some of that 'healthier' grass fed beef. We'll probably go back to
wheat production. As a 3rd world nation, we'll all be surviving on gruel anyway.
[...] [...]
Congress holds the purse strings.
Congress refused to hold a special committee meeting on this.
Obama went around Congress, forming this stupid committee by fiat/EO.
By the time this committee get finished, the complexion/majority of Congress will have changed.
This is yet more "make work" crap from Obama, who refuses to do his job, except for the ceremonial and party side of it.
Yep. Good old Article 15.
Actions have consequences. Words have meanings. "Unsustainable". How often do you year that and shrug it off? It means the status quo is going to END. Then what.
Drastic measures are required, but support for drastic measures won't exist until after a full-blown crisis erupts. And once that happens, one set of voices to oppose will be pushing to double down on mistakes that led to all this. Folks better buckle up and assume the crash position. We're going to augur in. When is anybody's guess, but the timing will probably surprise.
Yeah, what a farce. If BHO was seriously why not pay down debt with TARP funds that banks paid back. Or not spend remaining "stimulus" money, which borrowed billions, stimulated nothing, and apparently was not urgently needed immediately, as claimed. And give up on the unwanted expensive health care bill already! A commission is a dodge. He's spewing more campaign-style promises as Democrats in Congress cut-and-run in advance of the November onslaught.
“We must make the transition to individual retirement savings and a market-based insurance system.”
Are you insane??
If we had put Social Security into the stock market like GW wanted to, can you imagine the results today?
Please. Just shut up. OK?
[...] Big Government (blog) [...]
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