"The other reason why Congress has
been so sanguine about their headlong rush towards bankruptcy is that
they know that their willful ignorance is shared by many if not most of
their constituents. This is certainly not a modern phenomenon -- as the
following quote shows clearly:
"The greater part of men are much too exhausted and enervated by
their struggle with want to be able to engage in a new and severe contest
with error. Satisfied if they themselves can escape from the hard labor
of thought, they willingly abandon to others the guardianship of their
thoughts." (Friedrich Schiller: 1759–1805)"
The Refusal to Think
by William (Bill) Buckler
Early this year, Cornell University in the US did a "study"
which was designed to see if Americans equate the money they receive from
the US government with government "programs". They asked a
large number of "ordinary" Americans if they had ever used a
government program. The findings -- as reported by the New York
Times in February this year -- were astonishing. Forty-three percent
of Medicare recipients said NO. Forty-four percent of those on Social
Security said NO. Forty-three percent of people on unemployment
"benefits" said NO. And to crown the whole study -- FIFTY-THREE
percent of those getting student loans -- likely including Cornell
students -- said NO.
The Internet postings of participants at "Tea Party" rallies
holding signs up saying "Hands Off My Medicare!" have been
proliferating for months, to the great glee of the Democrats. In late
July as the debt limit circus was ratcheting up by the hour, President
Obama mentioned a letter he had recently received from a Medicare
recipient. He quoted the letter as follows: "I don't want
government-run health care. I don't want socialized medicine. And don't
touch my Medicare!"
Surveys taken in the last days of the debt limit "debate"
showed that an overwhelming majority (70-80 percent) of those Americans
polled were fully in favor of a constitutional amendment to force the
federal government to balance its budget. But as Ron Paul (quite rightly)
never gets tired of pointing out, without MAJOR cuts to so-called
"entitlement" programs, a balanced budget is
IMPOSSIBLE.
In "normal" times, this evidence of a massive delusional streak
running through the American electorate would be welcomed by (most)
politicians. It is what lets them get away with such amazing idiocies as
claiming that debt limit increases are being matched by budget
"cuts" -- while blanking out the fact that the debt limit goes
up NOW while the budget cuts take place over the next ten years. The
problem is that to people who actually think -- or claim to think -- that
their "entitlement" checks don't come from government, the sky
is the limit as far as manipulation of the "truth" is
concerned.
Willful Ignorance
In his book --
End The Fed -- Ron Paul maintains that there is an almost
total disinterest in monetary policy amongst members of Congress. He is
undoubtedly right. Dr Paul relates one private conversation with a
Congressman when he was asked if the US Dollar was "backed" by
Gold. The Congressman came away amazed, having blithely assumed up to
that time that it was. Dr Paul goes on to say that because of this
disinterest and ignorance, members of Congress are "convinced"
that there is no limit to what they can legislate because there is no
limit on what they can spend. What he describes is a fools' paradise.
Like any fools' paradise, the only thing which rouses the inhabitants to
fury is a suggestion that they might be mistaken. The just completed debt
limit "debate" is proof positive of that.
Members of Congress have been able to get away with this willful
ignorance because all they have had to do in the past to go on borrowing
and spending is to give themselves permission to do so by raising the
Treasury's debt "limit". Thirty years ago, the majority of them
were sure they would be able to go on doing this in perpetuity. Ten years
ago, the majority of them were sure they would be able to go on doing
this for the rest of their lives. Today, this "certainty" has
hit the wall.
The other reason why Congress has been so sanguine about their headlong
rush towards bankruptcy is that they know that their willful ignorance is
shared by many if not most of their constituents. This is certainly not a
modern phenomenon -- as the following quote shows clearly:
"The greater part of men are much too exhausted and enervated by
their struggle with want to be able to engage in a new and severe contest
with error. Satisfied if they themselves can escape from the hard labor
of thought, they willingly abandon to others the guardianship of their
thoughts." (Friedrich Schiller: 1759–1805)
The Struggle With “I Want”
Throughout this debt debate, the Democrats were defending the message
that government “services” are “free” while the Republicans were
countering with the argument that they are actually not “free” but that
doesn’t mean that it is necessary to tax to pay for them. Both sides were
wrestling with an insoluble problem. Almost half (47 percent) of all
Americans either don’t pay any income tax or get more money back from the
Internal Revenue Service (IRS) than they pay in income tax.
There are three major reasons for this. First, the income of MANY
American families falls below the tax “threshold” once deductions and
exemptions are factored in. Then there are the MANY “senior citizens”
whose income is partly or wholly derived from Social Security. Social
Security payments are tax-exempt. Finally, there are those Americans
whose “benefits” exceed the income taxes they pay. Add it all up and you
arrive at a situation where HALF of the American people are paying ALL
the income taxes.
Income taxes are not the only source of revenue for the US government.
There are many other taxes and government charges built into almost every
transaction. But income taxes are the major proportion of what the IRS
collects for the US Treasury to spend every year. And, of course, federal
government employees don’t “pay” income taxes because their income IS
taxes.
The situation is similar everywhere in the world. It differs only in
degree. When looking at their budgets, most governments divide them into
some equivalent of what is known as “discretionary” spending and
“mandatory” spending. “Discretionary” spending includes everything except
entitlement programs and the servicing costs of government debt. Fiscal
2011, which ends on September 30 this year, will be the fourth year in a
row in which the US government would have been left with a deficit even
if they had wiped out ALL “discretionary” spending -- which includes
“defense” spending.
In the US (as in most if not all other “developed” countries), most of
the people simply refuse to see these facts. Having refused to
acknowledge their existence, these people are in no position to consider
their implications. This makes a rational debate on the unsustainability
of government debt -- the vital need to cut it and the certain results of
failing to cut it in REAL terms -- extremely difficult. The circus in
Congress leading up to the August 2 “compromise” illustrates just how
difficult it is.
The “liberals” say don’t cut spending but raise taxes on the “rich”
(anyone who has more than me) and don’t touch my entitlements. The
“conservatives” say don’t raise taxes and cut spending -- but don’t touch
my entitlements. When either side is asked how -- both sides answer --
SOMEHOW!
###
William (Bill) Buckler
Captain of The Privateer
email:
[email protected]
http://www.321gold.com/editorials/buckler/buckler080811.html
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