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It has been about four years since I have blogged. One of my last blogs was about excessive government spending. Since the blog continued excessive spending has increased the federal debt and is putting an immoral unpaid tax bill on American children and grandchildren.
The late great Milton Friedman explains the evils of excessive spending: “Keep your eye on one thing and one thing only: how much government is spending, because that’s the true tax ... If you’re not paying for it in the form of explicit taxes, you’re paying for it indirectly in the form of inflation or in the form of borrowing. The thing you should keep your eye on is what government spends …”
Recently, an editorial by Issues & Insights – "It’s the Spending Stupid" – shows that entitlement programs – healthcare and Social Security are major contributors to America’s debt. “[T]wo-thirds of the entire increase in spending is due to…three items in the budget: health care spending (Medicare, Medicaid, and Obamacare), Social Security, and interest payments on the debt," the editorial notes. “In other words, it’s entitlement spending – and more specifically, health care spending – that is driving up the deficit, not tax cuts.”
Unfortunately, almost every Democrat running for president in 2020 wants "free" Medicare for all. Some want Medicare for illegal aliens. Additionally, many Democrats want free college, to expand other entitlements, and other costly new programs. The problem is that politicians used entitlements to please present-day voters – buying votes – and stick the debt to future generations. This is morally reprehensible and has been conducted by both political parties for too many years
Only a very strong law will restrain the power craving politicians. Fortunately, there is a nascent attempt in Congress as noted by FreedomWorks' Adam Brandon: “Switzerland successfully employed the debt brake in the early 2000s. The Swiss plan caps government spending increases at trendline revenue increase levels. In this way, the government will never grow faster than the private sector — nor should it.”
“Rep. Kevin Brady, R-Texas, and Sen. Mike Braun, R-Ind., have introduced the Maximizing America’s Prosperity (MAP) Act to address the United States’ $22 trillion national debt," he explains. “The Brady-Braun plan is a close variation on the Swiss idea. It caps spending based on potential GDP, an economic statistic that measures sustainable GDP growth over the long term.”
Alas, only a law restricting spending will stop the politician’s constant crave for power at the expense of future generations.