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  • How Federal Spending Undercuts Economic Freedom

    Join Majority Leader Eric Cantor and Heritage experts to hear what those cuts may mean for economic freedom, how greater economic freedom can improve the State of the Union, and what policy initiatives can help the U.S. regain the level of economic freedom that made it the most prosperous nation in the world.

    UPDATE: The event is over and we will put the video archive of this event as soon as we have it available.

    Posted in International [slideshow_deploy]

    2 Responses to How Federal Spending Undercuts Economic Freedom

    1. George Colgrove, VA says:

      Facts:

      1.The federal government seems to understand that there is a limit of about $2.6 Trillion they can collect from taxes. If they felt they could extract more from the taxpayers, they would have, rather than mount up over a trillion dollars of annual deficits.

      2.The US has a $14.58 trillion GDP each year (US dollars per year) (Q2 2010) which has seen stagnant growth over the last decade – any growth if any has been centered around massive federal spending.

      3.Annual tax collection is taking up 18% of the GDP.

      4.The National debt is currently $14.1 Trillion and growing daily – nearly 100% of the GDP! A the current pace of deficit spending the National Debt will exceed the GDP in three more months!

      5.Annual deficit spending (about $1.5 trillion) is about 10% of the GDP.

      6.If we are adding that to the GDP through government contracts, and through redistributed spending by federal employees and entitlement recipients, the GDP is actually $13.08 Trillion because government is actually spending recycled cash. That cash has already been earned (profit beyond expenses – the only way GDP grows) and then either spent for yet another round of profit making or confiscated by the government thereby stopping the potential growth for that cash. If true, this means we are already owe more than 100% of the "real" GDP!

      7.Debt service is roughly $430 billion each year. (We are only paying $230 billion of that)

      8.We cannot increase taxes – that argument was successfully made in the lame duck session.

      9.We cannot increase the deficit – that debate is going on now with very little non-government support on the increasing side.

      10.We need to pay back the debt! We do not want to be the cause of a global economic collapse.

      11.If we cannot increase taxes or increase the debt then what are we to do?

      12.CUT SPENDING – BIG TIME!

      13.Here is the logic:

      a.We can only raise $2.6 trillion in taxes

      b.We cannot use debt spending

      c.If we can only raise $2.6 Trillion then the total budget can only be $2.6 billion

      d.We must pay the full interest on the national debt

      e.Therefore leaving $2.37 billion left over government operations.

      f.We need to pay back the debt

      g.Therefore, we must pay back the debt, leaving the total allocation for government operations being less than $2.37 trillion. If we want to spend the next 30 years paying it back, it will take roughly an extra $500 billion each year to do so. This will leave us with $1.87 trillion to operate the government.

      These are the facts. It was not the American Citizens who have done this – it was the feds. We the people were either conned or misinformed (i.e. lied to.) The federal workforce obfuscated facts and caused enough confusion to make this the current situation a reality. They have been the only group that has benefitted from this deception. They have abused our trust and sold us many bad deals. It will not be the American People who will suffer the brunt of this, it will need to be the feds (from congress to every lavish federal office building). If we do not fix this now, soon there will be no tomorrow to fix it. We have passed the threshold of sanity. People defending the status quo are in a pathological and dangerous state of denial or have the continual desire to profit from it.

      The real and basic fact is we are losing more money annually from federal recklessness than we lose from the annual totals of natural disasters. We call for state of emergencies for these disasters, what do we do to protect ourselves from the federal government. Perhaps we need a government state of emergency and start putting the clamps on the feds.

    2. Pingback: Tweets that mention The Foundry: Conservative Policy News. -- Topsy.com

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    Big Government Is NOT the Answer

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