Obama's Misguided Approach to Deficit Reduction

Today President Obama announced that he would spend the second half of his term as President “fighting the deficit”. I applaud that mentality. Whether he has decided that the upcoming Republican takeover of the House and possibly the Senate has forced him to reconsider his radical outlook and move to the center, or, as some expect, he is merely paying lip service to the subject in order to help stem losses this November remains to be seen, but as with most political statements here, the “devil is in the details”, and when one looks at his “plan” to cut the deficit it should leave Americans worried. Very worried.

Target number one on Obama’s list of things that can help reduce the deficit, cut the military. If this seems a familiar tact, well, that is because it is. President Clinton used this strategy to help balance the budget during the 1990’s, decimating our military and helping to make America less secure, less able to withstand attack. President Obama looks to do the same. We saw the results of the last slashing of the military budget, but it appears that our current President chooses not to see the results from the last Democratic Presidents dismantling of the military (World Trade Center Bombing, twin embassy bombings in Africa, USS Cole and 9/11). Americans security hasn’t really been a priority for this President, a fact becoming more evident by the revealing of this plan.

Another budget balancing tool the President plans to employ, tax increases. Foregoing his history lesson once again (you know the one proven by Kennedy, Reagan and Bush II) President Obama will eschew tax cuts as a way of increasing revenues, believing Paul Krugman and other Keynesian economists, and increasing taxes. As most are keenly aware we are headed for the largest single tax increase in history this January unless Congress thwarts the expiration of the Bush tax cuts, and Obama looks to heap more on top of that, believing that this will increase the treasuries coffers. Some other programs the President seems keen to cut include the mortgage-interest deductions, child tax credits and the ability of employees to pay their portion of their health-insurance tab with pretax dollars.

Sadly, in both cases President Obama fails to learn the lesson that if we avoid learning from history it is bound to repeat itself. Time after time history has proven that tax increases do nothing to stimulate the economy, and often provide for less money into the Treasury (a reverse result from tax decreases). He also failed to read the chapter of history pertaining to the 1990’s and what happens when you cut the military, especially in such a volatile time.

As usual this President has gotten things backwards, preferring to live in some delusional world of the past filled with 1960’s radicals who have to fight “the man”. As Sarah Palin said recently, its as if he is a resident of some unicorn farm in fantasy land. Unfortunately the pixie dust he is using isn’t going to protect us from attack by radical extremists, nor put any more money into our pockets after this President takes it out to pay for his folly.