Budget cuts

For the entire year we have heard about how the draconian budget cuts were going to destroy the country. Here are some quotes: White House economist Austan Goolsbee has blamed reductions in government spending for slowing economic growth. Rep. Chris Van Hollen (D-MD) labeled GOP attempts to cut spending “reckless” and “irresponsible.” Rep. Steny Hoyer (D-MD) called the budget cuts a “meat-axe approach.” And in potentially our favorite quote of the year, Rep. Norm Dicks (R-WA) one-uped Hoyer by saying, “This is a meat-axe approach on top of a meat-axe approach. It’s a double meat-axe approach.” Here is the truth: “Data released by the Treasury Department on Friday show that, so far, there haven’t been any spending cuts at all. In fact, in the first nine months of the year, federal spending was $120 billion higher than in the same period in 2010, the data show. That’s an increase of almost 5%. And deficits during this time were $23.5 billion higher.” After all the talk about budget cuts it now seems that it was all smoke and no fire In the news today it was announced that private companies are sitting on five trillion in cash. The do not want to spend because they are concerned about uncertainty in government. If we get a new president next November the first day in office he could by executive order get rid of all the Czars and announce a five year freeze on all government departments. He could announce that in the first 100 days he would rescind all regulations enacted in the Obama term, repeal Obamacare, open drilling in the gulf and off shore and in Alaska. He could make changes in the tax law to remove all loopholes and lower the rate for individual and corporate to 25%. He could allow overseas profits to be brought home without tax penalties. He could make the Bush tax cuts permanent and all of these changes would unleash an onslaught of investment by companies using the 2 trillion of overseas money and the 5 trillion in cash savings. This would mean short term growth and jobs and more jobs. Once the economy is growing he could tackle entitlement spending and that would allow for long term growth and we would be on the road to a balanced budget. These things can be accomplished if the new president has a filibuster proof senate and a majority house. By the end of his first term the economy would be booming