The IRS suffered a huge revenue loss for 2008 taxpayer proceeds. The federal budget grows, mindless of the revenue loss, the deficit balloons to unprecedented size, and the Obama administration tells us the nation's health care costs over the past decade are to blame. We need to reject this claim. Let us not let him get away with this blatant lie.
Some $138 billion fewer taxpayer dollars were donated to the U.S. government for 2008. That's 34% less than April 15, 2008. This is about the housing bust and not health care. In Obama's haste to bring a Canadian-like health care plan to Americans, we see that he dismisses all Democrat culpability for the real cause of the nation's bankruptcy - both moral and fiscal. Of course, he would dismiss it because 1) he sat in the Senate that continued the lie about housing and 2) he believes that everyone should own a home whether they can pay for it or not.
It's this simple:
When lenders make loans which will fail and when homeowners buy homes they cannot pay for, the lenders will fail, the homes will go into foreclosure, the lenders have no revenue, the once-homeowners file for bankruptcy, the banks will not lend, small businesses fail without their short-term credit lines, employees are laid-off - filing for bankruptcy themselves, and more join the unemployment lines. The small business that fails can no longer pay rent, so the landlord fails, more foreclosures, more bankruptcies - more employees laid off. Supporting industries - perhaps the people that clean the buildings after business hours no longer have a building to clean, the landscape company no longer has a yard to groom.
Then there is the United Auto Workers (UAW) and the auto industry. Just as lenders allowed loans to the unqualified, the auto industry allowed ridiculous perks to union members. Payday for the devil (irresponsible management) has arrived. General Motors who ranked among America's largest employers, has sold it's soul to the U.S. government, and existing shareholders will see their shares worth one penny. Some 1600 GM dealerships will be pulled, more enter the unemployment lines, more homes - even those with qualified mortgages, will go into foreclosure, and the circle of madness continues. In the meantime, Chrysler is closing hundreds of dealerships and the circle of madness widens.
The Obama administration sees health care as "the real deficit" threat due to rising and inflated price increases by the industry, but some analysts are contrarians and believe that the problem is not rising and inflated costs, but more aging people entering the system. This quote from Obama:
At the fiscal summit that we held here last week, the one thing on which everyone agreed was that the greatest threat to America's fiscal health is not Social Security, though that's a significant challenge; it's not the investments that we've made to rescue our economy during this crisis. By a wide margin, the biggest threat to our nation's balance sheet is the skyrocketing cost of health care. It's not even close.One thing we can be certain of, Obama's determination to bring socialized medicine to America knows no boundaries. That's the goal and he is not ashamed to blame the economic downturn on health care to bring about the socialization of Americas medical opportunities - and there is no doubt, that in this country, there are medical opportunities in abundance - in stark contrast to any other country. While health care is an enormous cost-factor, and growing everyday, our country's leaders continue to squander billions while squalling about the cost of medical care.
We will always have health care costs. We will always struggle with medical care for Medicaid and Medicare recipients, as well as catastrophic medical care, and we should do everything we can to manage them responsibly, but we should never have irresponsible home loans, and we should never have the level of corrupt representation in the House and Senate that we have now.
We must get beyond the housing bust and see that it never happens again. To do that, we must undo all legislation that allows anyone to buy a home simply because they are seen as disadvantaged and so, deserving - regardless of the ability to pay. One giant step toward making this change is to boot Rep. Maxine Waters, Rep. Barney Frank and Senator Chris Dodd out of office - sending a strong message that constitutients will get some reckoning for their misdeeds with the Community Reinvestment Act. This is not likely to happen, so we need moderate Democrats with every Republican, to step-up and work to strike the Community Reinvestment Act from law. Even in the wake of economic disaster, the Community Reinvestment Act lives on.
Health care isn't the culprit.
Photo Credit: AP Photo/J. Scott Applewhite.