The No Solution Deal

By Bill Wilson
A late deal struck by House and Senate leaders to raise the debt ceiling — with spending cuts that won’t balance the budget anytime soon, if ever — is a sad commentary on the state of affairs in Washington. There is no solution in sight.
It leaves the American people short-changed; who in 2010 voted to rein in government at all levels, most importantly, from spending far more than it takes in. While families struggle with their monthly balance sheets, the federal government has been on an unprecedented spend-a-thon that would wipe out anyone else who tried it.

Since Barack Obama had his first budget passed (accounting for two years of spending), he has accumulated $2.4 trillion in new debt. That’s over $1 trillion a year in new debt, a number that will continue unabated through 2021 when the debt reaches $26 trillion.

That is, if the government’s rosy economic projections turn out as everyone hopes, with a robust economic recovery and millions of new jobs created. If the projections are wrong, and the economy does not double in size in the next ten years, revenues will fall far short of expectations.

Aside from the lack of spending cuts, an essential feature of any plan a family would follow to reinstate fiscal prudence, the other essential ingredient missing from the deal is a recipe to get the economy growing again. It will do nothing to reduce the exorbitant cost of doing business in America, with corporate taxes among the highest in the developed world. Where the federal regulatory overkill threatens to shut down millions of more jobs. And where the new costly healthcare entitlement, ObamaCare, threatens to topple the federal treasury once and for all.
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