It's the position that others are now taking:

Thursday – July 21, 2011

It’s the position that others are now taking:

The world is watching the debate that is taking place in Washington today. I don’t believe that the world is watching what we are doing on the job front, because we are not talking about that this week, but they are looking to see how we control our spending and our debt because that is what we are talking about now.

It seems that this administration is hell bent on not doing what is necessary to create jobs, so it might be a moot point to talk about that today.

But what shouldn’t be moot is how we go about solving and curing our spending habits which have now affected our long term debt and debt rating. In 69 out of the last 80 years, since we have had a debt ceiling, the federal government has spent more than it has taken in. If we analyze the headlines, during every administration, in that time frame, we will see that the arguments have been the same whenever we have had the debt ceiling debate. The only thing that has changed is the players and the dates. However, what has changed now, in 2011, is that we have fewer tax payers, bigger entitlements and we will now hit the dead end on the road that we have been kicking the can down for 80 years.

There has always been wiggle room and room for compromise in this debate, but now the reality of a D-day is settling in. The latest proposal from the Senate does not lower spending; it cuts spending against the baseline and does not provide cuts in actual spending. For instance, the Senate proposal calls for raising the baseline by 9 trillion dollars. If they cut 3 trillion from that baseline, they will still add 6 trillion to the national debt. At this rate we will be at 100% of our GDP in a few short years. This is not serious planning; it is the old Washington shell game. They will take symbolic cuts in some areas, only to add more funding in other symbolic areas. This is the position that others are now taking.

If we raise the debt ceiling and make serious cuts with a long term plan that shows we are serious about lowering the debt and controlling our spending habits then the S&P and Moody’s will feel comfortable in keeping our triple A rating, especially if a balanced budget amendment is part of the deal. However, if we have a weak plan, with small numbers over a short term, then our debt rating will be lowered. They have told us as much! This is the position others are taking.

If the debt rating is lowered our economy will take the hit. It’s all about controlling our debt and coming up with a serious long term plan, instead of one that is for the short term and that symbolically shows bipartisanship. The world doesn’t care about our politics. The world cares about America’s dollar and its credit. We, as citizens, should also be concerned about what the world is seeing and what they are observing when a final decision is made.

At this point it’s all about politics and not economics that is the position that others are also taking. This is why we shouldn’t trust the six page overview from the gang of six. The gang of 6’s proposal, put forward in the Senate yesterday, is based on the recommendations of the Simpson and Bowles plan. This is fine, but it doesn’t go as deep. The gang of 6’s proposal calls for slashing 3.7 trillion over ten years, why not the larger number that the House plan called for. The gang of 6’s proposal is to reduce the public debt by 70% by 2021 why not by 2018 and aim higher. The gang of 6’s proposal calls for a reduction in the marginal tax rates while abolishing the AMT. This is also good, but the rich will be taxed more; and what about the 50% of Americans who don’t pay tax? They still get a free pass and someone has to pay for that shortfall. In addition, the Senate proposal calls for discretionary spending caps through 2015 why not make it through 2021 with larger caps. Lastly, the Senate plan does not include a balanced budget amendment. I said yesterday that this is the single most important thing that we can do for the viability of the economy, our spending levels and our debt. More important than that it’s our country’s financial viability and credit worthiness. Until this is done, nothing will significantly improve.

That is the position that others are now taking.

On the political side, the Tea Party members are being demonized, the conservatives are being called extremists and the Republicans are being set up for the hit. Is this what should be happening? The administration has not offered any proposal for over two years. Isn’t it time that someone gets serious and demonstrates extreme measures to get the job done?

Both Obama and Biden were strongly opposed to raising the debt ceiling whenever the question was debated, when they were Senators. Why is there a change in their opinion now? It’s because they have control and they want to fundamentally change America! This is the position they have taken!

In today’s debate there should be two questions that haven’t been asked. How to move this country forward in a financially responsible way? And how do we secure the necessary resources, so that the people who really need those resources get it?

We also need to answer some other fundamental questions. Just what kind of a country do we want? Is it in our best interest to expand the nanny state? Or is it in our best interest to provide the resources to expand our liberty our freedom and our independence.

In days gone by, we relied on the writings of Dickenson, Paine, Adams, Franklin and Jefferson to give us light and provide us with the direction that gave us our liberty our freedom and our independence. Today, the list of pundits, journalists, talk show hosts, entertainers, news reporters, press secretaries and the lists goes on, will shape and will distort whatever the message is for the day. Go back and read some of the earlier writings that gave us a platform that we relied on up to 80 years ago.

Go back and read about the importance of paying our debts. Read about the dangers of big government and read about why the country had a revolution. If you do you might have a position that others are not taking.

Gregory C. Dildilian
Founder and Executive Director
Pinecone Conservatives

A footnote: No matter what the position is it will always be debated. However, there are certain fundamental rights and certain fundamental principals that should not be ignored. It is the position that incorporates those elements that will be the most successful for the country!