The $3.4 Trillion Death Blow by Jonathan Vander Veen

Obama's budget could have devastating consequences

What a surprise, the Democrats of the House and Senate adopted Obama’s $3.4 trillion budget blueprint. This is $3.4 Trillion for next year! One-third of this massive budget is being borrowed and no one on the left is even thinking twice about the severe consequences that will come about as a result of this outrageous budget. Nancy Pelosi even had the audacity to say that “It’s a budget that reduces taxes, lowers the deficit and creates jobs.” Then Obama goes on to say that this budget will “move this economy from recession to recovery and ultimately to prosperity.”

I don’t mean to be a Debby Downer, but I foresee the exact opposite of what Pelosi and Obama prophesy as happening in our and our children’s futures. They see nothing but good times, rainbows, free pre-school and college for all, free healthcare for all, government designed cars, green fuels and technologies at low rates, Muslim nations that love us, no more rich people except for those Democrats within the government, and whatever else their misguided hearts are filling their heads with.

We need to be much more realistic here. This budget is going to create endless deficits so large that anyone who ever criticized George W Bush for running up the deficit should be so embarrassed that they should dig a hole and hide in it for the rest of their lives, extremely high interest rates and a deadly inflation rate, the end of private insurance and the beginning of rationed medical care, higher college fees and costs, and numerous other problems.

The first major issue that we will have to face is the deficits and the debt that this $3.4 trillion budget will create. We are looking at trillion dollar deficits being the norm in this country with all of the spending going on in the Obama administration. Obama says that this spending will help create a more prosperous future and, can you believe this, decreased deficits.

That will not happen. What will happen as a result of these deficits and the accumulated debt will be higher interest rates and one of the worst bouts of inflation that this country has ever witnessed. With the higher interest rates and high inflation, we will see a huge increase in prices because the purchasing power of our dollar will be reduced to practically nothing. Once this happens, borrowing and spending will come to a halt which will lead to dramatic losses in revenues and increased unemployment rates. The economy will first come to a standstill and eventually collapse.

As the economy progresses towards its demise, the government will try to stop that trend by increasing taxes. The government will say, like Obama is saying now, that it will only raise taxes on the wealthy, but taxing only the wealthy will not bring in sufficient revenues to pay for all of the costs of our bloated government. So it will eventually have to increase taxes on just about everyone.

But even if the government does only raise taxes on the wealthy, that will not do any good for anyone in this country. The wealthy are the creators of all things in the economy. The wealthy create jobs for everyone else and they create wealth for everyone else. Once more of their revenues must be used to cover the costs of increased taxes, they will have less money to use to expand their business and higher new employees. So even when the government says that it is only going to tax the rich, it is everyone who will have to pay.

With this budget, Obama will also begin to get things moving with his horrific healthcare plan. Obama will finally be able to develop his dream of being in charge of America’s first universal healthcare plan. Unfortunately his plan will not save our budget deficits nor will it even improve our healthcare system. His plan will be extremely expensive and it will destroy the best healthcare system in the world.

Obama’s universal healthcare will also kill thousands of jobs because it will bankrupt and shut down thousands of private insurance companies. Once his plan goes on line, many families will drop their current private healthcare provider and opt for the government healthcare; even if they can afford the private plan. Once the private companies begin to lose customers they will have to increase their costs in order to continue to provide their services to their existing customers. Once costs go up, the government healthcare will look that much more appealing. Eventually enough people sill switch to the government plan that private companies will not be able to keep their doors open and they will shut down.

Obama’s universal healthcare will also destroy the high quality currently found in private healthcare plans. Everyone will be going to see their doctor for even the slightest of problems. Eventually you will have to wait months just to visit your doctor for a routine checkup; years to see a specialist. And when you finally get to see that doctor, he or she will most likely not be of the highest caliber. You see, when the government takes over the healthcare industry, they will be calling the shots. Once the already practicing doctors lose their autonomy in their own office, they will leave the industry. So after you wait a year or three to see that specialist to fix your heart, lung, or brain, the procedure will be performed by a second-rate individual who is a doctor only because the real doctors have already left the field.

One of the worst things with government run healthcare is that the government will be calling all of the shots when it comes to your procedure. If the procedure you need is expensive, you might not ever get it. Government healthcare is not about saving lives; it is about saving money. Decisions will be based on a cost-benefit analysis. In other words, if the benefit of you living does not out way the costs, don’t expect to get that life saving procedure. At that point, the government will do what it can to make sure that you are comfortable during your last days. I doubt that it will be very comfortable.

Also from this budget, Obama keeps bragging about how he is going to increase Pell Grants to needy students. Obama believes that this is going to save people money. Once again he is wrong. By offering more money to more students what Obama is actually doing is he is raising the costs of going to college. Colleges and universities will adjust their fees according to the number of students enrolling in college. With an increase of students comes an increase in costs. Once costs go up, fees will go up.

Colleges and universities will also be adjusting their fees because, well, just because they can. Potential students will have more money to go to college, and being the businesses that these schools are, they will raise their fees accordingly. If the students can afford higher fees, you can count on the schools to charge higher fees.

In the end, this $3.4 trillion budget will not make this country a better place. Good times are not a coming because of Obama’s plans to spend a lot of money. Unfortunately we are going to be heading down a path that I had hoped that we would never go down. Increased debt, higher interest rates, higher inflation rates, higher prices, lower purchasing power, decreased consumption, higher taxes, higher unemployment, higher healthcare costs along with lower healthcare quality, higher education costs, once again higher taxes, and once again higher unemployment rates are just a few things that we will actually see in our future.

Increased spending is not the answer. What we need to do is let the free market reign supreme and allow for the innovation of the American citizen rule the day. Those two items, free markets and innovation, will help bring back prosperity to this great country of ours. The great people of this great country need to stand up and let Obama and the Democrats in Congress know that we will not let them destroy this country and we will not let them destroy us.