While President Obama enjoyed his long- weekend extended birthday party at Camp David, the usual suspects turned out to defend the administration against charges that it had contributed to the credit rating downgrade through poor economic policy. It was especially sickening for me to watch two major perps, Larry Summers and Timothy Geithner, wash their hands in public and blame the rating agency, the Republican Party and, most vituperously, the Tea Party, for the shameful black mark imposed on America’s record sheet.
There can be no question that the Keynesian fiscal stimuli and the socialist nationalization programs launched by the Obama administration came directly from the mouths and the computers of Messrs. Summers and Geithner. And those policies slammed the final nails into the AAA credit rating downgrade coffin of the United States federal government.
From a longer-term perspective, however, the root causes of the credit rating downgrade lie much earlier in time. For the $14.4 trillion debt officially listed as the source of the problem is the seventh order of smalls of the real debt of $100 trillion in unfunded liabilities. The sources of these unfunded liabilities are located in Social Security, Medicaid and Medicare. So who was responsible for these behemoths that threaten to destroy the economy of the United States?
The answer is the Democratic Party in each and every instance. The Social Security Bill was placed on President Franklin Roosevelt’s desk by Democratic majorities in both houses of Congress. FDR signed the bill into law in May 1935, noting privately that this legislation would secure Democratic Party majorities forever more. Why? Because it would trap all Americans into dependence upon the state, by replacing their own saving for retirement with forced saving by the federal government. What FDR could not know is that succeeding generations of politicians, right as well as left, would steal the monies placed into that pot and divert them into wasteful, vote-seeking consumption outlays. That cupboard is completely bare.
Medicare and Medicaid bills were placed on President Lyndon Johnson’s desk by Democratic Party majorities in both houses of Congress in 1965, and were swiftly signed into law. Once again a Democratic Party president salivated at the prospect of locking Americans into yet further dependence on DC. Once again, all assets have been stripped out by avaricious politicians and these cupboards, unsurprisingly in the shady environment of Washington, are also completely bare.
Then came Obamacare, an under-funded program placed on the president’s desk by Democratic Party majorities in both houses of Congress in March 2010 and signed into law by a President Obama who fully recognized the yet further economic and social dependence of Americans on DC provided by this deliberately under-funded legislation.
And who precisely was pressing throughout the American spring of 2011 for debt-reducing structural reforms to Social Security, Medicare and Medicaid, and for the removal of Obamacare? Was it President Obama? No! Was it the Democrats in Congress? No! Was it Larry Summers? Most resoundingly No! Or Timothy Geithner? No! The hands of these Lady Macbeths are simply dripping with blood and no amount of hand-washing will remove the crimson stains.
The call for entitlement reform came from one major source, the Tea Party members of the Republican Party. Had their plans and wishes been implemented on August 1, 2011, there would have been no credit rating downgrade.
Tags: black mark on America, creatures of the Democratic Party, credit rating downgrade, Larry Summers, medicaid, medicare, Obamacare, shame on Washington, Social Security, Timothy Geithner, unfunded liabilities