Wednesday, October 26, 2011
To: Friends & Supporters
From: Gary L. Bauer
Obama/Reid/Pelosi Want Your Last Dollar!
The Hill is reporting that Democrats on the deficit reduction "super committee" this week demanded massive tax increases AND more stimulus spending. Consider this excerpt:
"Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, presented a proposal backed by a majority of Democrats on the panel that includes trillions of dollars in tax increases. The revenue would partially cover stimulus spending for the economy, aides said. More than 50 percent of the deficit reduction in the plan would come from tax increases."
Democrats just don't get it! The super committee was charged with getting the deficit under control. What caused the deficit? Out-of-control spending. So Democrats do what comes naturally -- they raise taxes and spend even more. That formula hasn't worked yet. But doing the same thing over and over again while expecting a different outcome is a classic definition of insanity.
Obama Buying Votes With Your Money
At a recent campaign event, Barack Obama told supporters that his reelection effort would not be as "sexy" as his 2008 campaign. On many college campuses, Obama's 2008 campaign was more like a cult. But after nearly three years of Obamanomics and high unemployment, the scales have fallen from many youthful eyes. Desperate to energize his base, Obama is once again dolling out tax dollars -- your money.
According to White House leaks, Obama plans to issue a new executive order enabling students to cap college loan repayments at 10% of their income starting next year. Under current law, the cap is 15%, but it was scheduled to be reduced to 10% in 2014 as authorized by Congress last year. Any remaining debts not paid off in 20 years will be forgiven, instead of 25 years as stipulated under current law.
Student loan debt has exploded in recent years. The average graduate left college in 2009 with not only a degree, but also $24,000 in student loans. Student loan debt has surpassed credit card debt and will top $1 trillion in obligations this year. USA Today reported this week that, "Total outstanding [student loan] debt has doubled in the past five years."
Now I know a lot of you reading this probably have college-age children or grandchildren who may be struggling with their student loans. I understand their pain. But no one should applaud this latest Obama scheme.
First, I'll concede that there is a lot the president can do with his executive authority. But no matter how admirable his intentions, I do not believe any president has the power to rewrite laws, which is precisely what Obama is doing by changing dates (2014 to 2012) and terms (25 years to 20 years) in existing federal statutes.
Second, Obama has offered this up as part of his dictatorial "We Can't Wait" approach to governing. But I'm not aware of this plan being included in anything Obama has sent to Congress this year. He's just accelerating some changes that Congress authorized last year.
Third, while Obama's plan might help make payments easier, it does nothing to address the cause of the problem of college debt -- skyrocketing college tuition costs. According to the Heritage Foundation, college tuition has increased 439% since 1982, more than healthcare costs. Tuition rates jumped more than 8% this year alone.
Lastly, a key demand of the Occupy Wall Street movement is free college and forgiveness of student loans. But, like credit card debt and home loans, education debt is voluntary. No one forced students to take out these loans. When you contract for a service, there is an expectation of payment. When you take out a loan, you have to pay it back. That's how businesses and the economy functions. Obama's plan makes "suckers" out of all students who have paid off their debt.
The moral hazard involved in government interference with the free market is tremendous. The idea that Big Government can wave a magic wand and make debt disappear or make jobs appear is creating a detrimental dependence that will doom our republic.
OWS Movement Turns Violent
While the "mainstream" media desperately tries to portray the Occupy Wall Street movement as representative of middle America, there is more evidence today of the radical left-wing influences behind it. Fox News reports that the disgraced community organizing outfit ACORN is actively supporting the riffraff in Zuccotti Park -- even paying homeless people $10 an hour to join the protests.
Meanwhile, across the country, the movement is creating more problems than solutions. And in some cases it is turning violent. For example:
- In Boston and other cities, officials are increasingly worried about health hazards. This week Boston police arrested two occupiers for selling heroin.
- Today's New York Post reports that OWS organizers in Zuccotti Park are increasingly frustrated that their free food is attracting the homeless, gangs and ex-cons just released from prison. Evidently, they don't want to share their free food and free sleeping bags with "vultures." OWS "sanitation volunteer" Lauren Digioia complained, "We're talking about occupying… This group is squatting here and using our resources." Perhaps there is hope for Ms. Digioia yet! Millions of hardworking Americans feel the same way about free-loading socialists.
- In Oakland, California, riots broke out yesterday after the police evicted the occupiers from their camp. Numerous disturbing videos of the violence have been posted online. In one instance, a group of police officers was encircled by a mob and attacked with water bottles and paint bombs.
Next time you hear Barack Obama or some other left-wing politician praise the Occupy Wall Street movement, ask yourself how many Tea Partiers were arrested for selling drugs? How many Tea Partiers attacked cops? How many Tea Party events ended up in full-blown riots?
These radicals do not represent average Americans, and honest Democrats know it. While the left is occupying Wall Street, we need to devote all of our resources to occupying the White House in 2013!