The Financial Crisis

With the financial crisis we’re currently in, it would take more than 1 blog post to get through it all. But, in 1 post, you can hit on the primary points and the major issues. Over the past few months, we’ve watched as President Obama presented a budget that would triple the deficit and then we would start making very minimal cuts. In this budget, the main point of Obama was that we would be cutting about $100 million. With a budget of about $3.5 trillion, that cut only came out to .0029% of the budget. Thus the debate began about the budget and the impending doom of the country.

With this debate came the idea that a government shutdown could happen. For many in the country, a government shutdown wasn’t a bad thing. But the politicians, mostly Democrats, began making horror stories about what would happen if a government shutdown were to happen. We heard how people would die and how the troops wouldn’t be paid. Firstly, people wouldn’t die. Secondly, the troops would be paid as they had been in the past 2 government shutdowns, the only person who could stop them from getting paid is President Obama. During the elections, we were promised multiple times that the Republicans would make $100 billion in cuts. Within a week of the debate starting, that number dropped to $61 billion. The people weren’t happy but like usual the politicians didn’t listen. After another week of debates, the deadline for the government shutdown was getting closer and closer and the talks between Sen. Harry Reid (D-NV) and Speaker John Boehner (R-OH) had begun. After a few days of nothing coming from their talks, President Obama stepped in. In an attempt to be the President who stopped the government shutdown, only $38 billion was cut.

After the deal had been made, many dived into what exactly was being cut. When you get down to the true cuts, it comes out like this:

Congressional Budget Office (CBO) says the “deal” cuts $352M in spending.

Government spends $6.85M per minute. $352M / $6.85M = 51 minutes. So the deal effectively cuts 51 minutes of federal government spending over the next six months.

The average American family spends $49,067 per year. That’s 9.3 cents per minute. 51 mins. x 9.3 cents = $4.76

So what our genius Congress is agreeing to is the same as if the average family was in grave fiscal danger and came together and agreed to cut $4.76 of spending out of their budget for the next six months. That’s 79.3 cents per month!

With only $352 million in cuts, Congress proclaimed they had saved the country from a government shutdown. With the public debt hitting $14.3 trillion and the debt subject to the limit, the debt ceiling, being $14.25 trillion, Congress decided to go on a 2 week vacation. On the Friday before Congress comes back, the debt subject to the limit is expected to hit that $14.3 trillion debt ceiling.

So, since the election, the “new” Congress has given some things to congratulate them on, but in the end they did business as usual, screw the American people. Meanwhile, Rep. Paul Ryan (R-WI) came forth with a plan called “The Path to Prosperity” to cut $6.2 trillion from the President’s spending over the next 10 years, reduces the debt as a percentage of the economy, brings federal spending to below 20% of gross domestic product (GDP), consistent with the postwar average, and reduces deficits by $4.4 trillion. This purposed plan will be done by reducing spending, welfare reform, health and retirement security, budget enforcement, and tax reform.

Although Ryan’s plan isn’t going to stop the hole that we are in, it is a step. We can not let Congress or the President continue to treat the financial crisis like it is only a bug on the window. The financial crisis is in fact a whale on the window. We must scan every plan brought forth with diligence and make sure a so-called $38 billion cut isn’t an actual $352 million cut. We have already seen that those we elected have faltered and given into the demands of those who are working to destroy our country. We must fight back and demand that Congress WAKES UP AND SMELLS THE TEA.


One thought on “The Financial Crisis

  1. Pingback: The Financial Crisis « The Tea Revolution |

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