Fiscal Responsibility: A Necessity For A Sustained Economy

Balancing the federal budget, reducing spending, and paying down government debt has never been a priority or policy for Republican Presidents in the last 50 years.  That is the main reason the economy has never been on an even keel or sustained itself on the Republicans' watch.  Their ideology is to bankrupt the federal government so that social security, medicare, and other federal programs that work will have to be dismantled.  That is just one of the reasons that George W. Bush wanted to remake social security into private accounts. 

 

Contrary to what the American people have been led to believe, the federal government can afford needed programs if the budget is balanced and debt creation is eliminated.  Tax increases are not necessary to pay for needed programs when our house is fiscally sound.

 

Senator Clinton is the only presidential candidate, Democrat or Republican, who is campaigning on fiscal discipline and a balanced budget.  She recognizes that without both, the economy will never be sustained and action after the fact will have to be taken, such as what is happening now with the fiscal disaster that Bush has laid on our country and its people.  It only takes common sense to realize how well off our country would be today had Bush not recklessly spent the $5.6 trillion surplus and had he followed the path of balanced budgets and fiscal responsibility the previous administration left him.  But instead, he embarked upon a record deficit and debt spree never seen before in American history.

 

Senator Clinton understands the big picture of the benefits to the nation and its people and the rewards of being fiscally responsible.  The mess we are now in with the mortgage and financial industry would never have happened if Bush had the federal government's fiscal house in order.  During the campaign, the Republicans will once again try to accuse the Democrats of wanting to raise taxes.  The voters need to catch on to something: it has been the Republicans who are getting into their pockets in so many different ways.  $3.25 gallon gasoline is only one of the many examples.

 

Senator Clinton is in a position, with her experience, to bring back fiscal sanity and a balanced budget, to not only have a sustained and growing economy that creates new jobs, but to have the resources to do what is necessary to move our country forward and service the people's needs.  

Republican Administrations = Fiscal Disasters

The economic numbers for the first quarter are in, and they are not good.  And even worse, it comes at a time when the Federal Reserve Chairman, Ben Bernanke, says that he does not rule out a recession.  Let's take a look at what is behind all of this:

 

The economy lost 80,000 jobs in March; 76,000 jobs in February, and 76,000 jobs in January for a total of 232,000 jobs lost in the first quarter of 2008.  The government reported that the March job loss was worse because the actual number of jobs lost in the private sector was 98,000 and only hiring by the government brought the job loss to 80,000.  The unemployment rate increased from 4.8% to 5.1%, the highest  in two and half years---at the end of March there were 7.8 million people unemployed.  The Federal Reserve also reported first quarter GDP will more than likely show none or very little growth.

 

It was reported in my three part series, "The Economy: Which Party Performs The Best", that the problem with Republican administrations and the economy is twofold.  They have a tax cutting plan ,called trickle down economics, but no real, broad based economic policy.  They have a reckless fiscal policy of deficit spending and debt creation, rather than what this country needs for a stable economy--- a sound fiscal policy, based on balancing the federal budget.

 

The economy lost jobs in the first term of George W. Bush because a lack of a economic and fiscal policy.  Job creation under his administration, when it comes to an end, will be one of the weakest since Hoover.  One recession has already taken place on his watch and another one is brewing.  Yet with all the bad news, the President does nothing.   

 

It should be noted the unemployment rate on Reagan, Bush 41 and Bush 43's watch never went down at a steady pace.  On each of their watches it increased over what it was when they took office before it came back down: Reagan from 7.5% to 10.8% before it started to come down;  Bush 41 from 5.4% to 7.8% before it started to come down.

 

When President Clinton took office unemployment was 7.3% and it never went over that.  In fact, the unemployment rate went down on a steady basis every year that he was in office and was at 4.2% when he left.  The Clinton administration was also steady in creating jobs upward and in record numbers while Reagan, Bush 41, and now Bush 43 were/are inconsistent.  That was also covered in my three part series mentioned above.  Those three neocon presidents did not even come close in creating a sound economic and fiscal policy.  Clinton had a real economic and fiscal policy that produced the greatest economy, created jobs, low unemployment, advancement for the poor, middle class and all through the economic ladder and real increase in wages.  Not to mention, he also produced a balance budget that returned surpluses, paid down debt, and left Bush a $5.6 trillion surplus, which he of course blew.  By the way, crime and unemployment hit its lowest level in 40 years on Clinton's watch.  Yea, you read right, it happened on a Democrat's watch.

 

The Clinton haters are out now in full mode, especially journalists who are infatuated with Obama, since his wife is seeking the Democratic nomination.  They are still reporting opinions and false hoods as fact, just as they did during the impeachment of the President by the Republican Congress.  The voting public would also do well to remember that the U.S. Senate found Clinton not guilty of the impeachment charges, and a five year investigation by the government concerning Whitewater found nothing.  The only thing the President was guilty of was lying to the public about an affair.  The same Clinton haters are trying to do the same thing to Senator Clinton---they just can't stand the fact the country and its people did so well on President Clinton's watch and they don't want to see Sen. Clinton have that same success. 

Sen. McCain's Lack of Fiscal Knowledge

During Wednesday's CNN Republican debate, Senator McCain was asked what he would do to reduce the national debt.  The Senator's answer showed his ignorance of the subject matter and why he should not be taken seriously as a candidate.

 

McCain, in his answer, once again invoked Ronald Reagan.  McCain said that he would use Reagan's veto pen on excess spending to hold the line on spending while eliminating pork.  The Senator used the wrong President.  Ronald Reagan never balanced one federal budget in his 8 years in office and gave the country record deficits at that time.  The national debt increased $1.9 trillion on his watch and spending  was up over the previous administration (Jimmy Carter). 

If McCain plans to emulate Reagan on fiscal matters, he will instead increase the debt and give the country even more deficit spending.  For a person who claims to "shoot straight" and have experience, his answer indicates he is lost when it comes to fiscal matters. The American people need to understand that when Bush leaves office ,the last 3 Republican presidents will not have balanced one budget in the 20 years they served and have increased the national debt by over $7 trillion. 

 

The Republican plan can be plainly understood.  They want to bankrupt the country to eliminate social security, medicare, and other government programs that truly help the American people.  At the same time, they support corporate welfare for the richest corporations and tax cuts and other benefits that go to the most wealthy people. 

 

The Republican's hands have been laid bare.  The GOP candidates have proven (with the exception of Ron Paul) that they care nothing for being fiscally responsible.  Remember, it was Bill Clinton who turned 12 straight years of deficit spending by Reagan-Bush into record surpluses.  Also it was Bill Clinton's administration who paid down a net of $14.2 billion of the national debt.  The people should remember that when they vote in the next presidential election.