Rep. Chris Van Hollen (D-MD), ranking Democrat on the
House Budget Committee, went on CBS’s Face the Nation on
February 20 to argue that the Republicans’ draconian spending cuts
equal to 2% of the 2011 budget, and 6% of the 2011 deficit, would
destroy 800,000 jobs. The Wall Street Journal tracked down
the foundation for that number, and found it was a fabrication put
out by the Economic Policy Institute, a disreputable union
In today’s modern world, that 1930s-1970s Keynesian thinking can only be attributed to a poor education. What increases economic growth, jobs and prosperity is not government spending but increased production, which comes from increased incentives for production. That means lower tax rates and regulatory costs on production. That was the new, more modern, supply-side economics that President Reagan brought to Washington, resulting in a 25-year economic boom without inflation. The rest of the world watched and learned from Reaganomics, which is why countries like China, India, and Brazil have been growing steadily. America is starting to fall behind now because the Democrats are taking us back to the 1930s-1970s era, with their Rip Van Winkle economics pretending that everything since 1980 except the financial crisis of 2008 never happened.
The Republicans’ $100 billion spending cut is just a small down payment on what is necessary and what is coming in House Budget Committee Chairman Paul Ryan’s 2012 budget that will set spending on a different course for the next several years. If the Democrats cannot abide even a 2% cut for 2011, with a $1.645 trillion deficit, they will be on a different planet when it comes to Ryan’s 2012 budget.
What the Democrats are revealing on a daily basis right now is that they are at war even more with the Tea Party than with the Republican Party. Tea Party activists take note, the daily message of the Democrats right now is that the Republicans don’t want to spend enough. The Democrats are even saying now that smaller deficits and debt will be bad for the economy.
Democrats, the party of dependency, continue to insist that we transfer income and wealth to government employee unions and assorted “dependent” classes, no matter the cost or destructive effect on our economy and job creation. Theirs is a purposeful effort to ignore the reality of economics and follow a Marxist ideological path where the only destination is economic Armageddon. Why do we allow ourselves to be subject to this insanity?