Tuesday, July 26, 2011
Dems Against the Debt Ceiling, Oh My!
A lot is being written about how the Democrats, particularly President Obama and Sen. Reid, were against raising the debt ceiling in 2006. But yet that reporting is incomplete. So the Democrats were against an increase but were accused of blowing up the budget in the 2008 and 2010 election cycle. What's up with that. Well the Democrats objected to increasing the debt ceiling because it was being used to fund programs off budget namely 2 wars and bank bailouts. The Democrats wanted these items put into the budget, which they did causing the budget to explode. In the end this is a more honest accounting of the nations expenses and has probably slowed the growth of debt. Now Republicans are opposed to any increase without massive spending reductions. The problem is that the debt is paying for past expenses. We are currently running a deficit because the job creators are not creating jobs or even spending. Until the economy gets moving the spender of last resort is the government, the wealthy as so often in the past cannot spend enough to turn the economy around and when coupled with trade and labor policies that favor creating jobs outside of the country you have the stagnation with record profits for a few that we see now.