The Congress and President of United States negotiated a deal to cut 30 some billion from the budget this week. The hacks on the left and the right in congress told the talking heads in the press who will reprint any comment that will make a profit for them published newspaper headlines and cut video segments lauding this at the biggest most historic cut in the history of the US government. Folks you are the suckers here. Does anyone remember a couple of guys named Harding and Coolidge. They were a couple of early 20th century US Presidents who happened to follow a President who much like our current president loved to tax and spend. In the early 1920’s following the presidency of Woodrow Wilson, Harding won election and started to move to the right. But two years in he died in office and a small town guy name Calvin Coolidge was thrust into the hot seat. Lucky for Coolidge he had Andrew Mellon. The plan Mellon ( of Mellon bank of Pittsburgh fame and Carnegie=Mellon University) and Coolidge came up with was a two-pronged approach. Cut taxes and spending. His federal cuts were over 30 percent of total spending.
Running the numbers our current congress, as could be expected is a bunch of wimps. I should throw the press and the President in there too as they are all out there talking about how “dramatic” these cuts are. Well compared to what Harding and Coolidge did this is a minuscule cut. It is less than 1 percent of total government spending. How did the roaring 20’s happen? Massive government spending and tax cuts. So lets look at ow much our cowardly lions and scarecrows in Washington need to cut to even get close to Coolidge. With todays federal spending the wimps in Washington would need to cut 1.1 trillion of spending. 38 billion is not even close.
SO what stopped te great recession of 1920? Spending cuts and tax cuts. What cause the great recession of 2008? Spending and no tax cuts. The direct inverse of what really works. President Obama is either foolhardy or driven by an agenda. My feeling? This is all deliberate. The agenda is to use the Federal Government to take the money from the rich and give it to the poor. Well guess what. It never works. Look at the Soviet Revolution, Venezuela, Egypt and Libya. The wealth never filtered down to the poor. But the fat cats lived better than ever on even cheaper labor. Labor they are using to kill the United States. We must stop this trend .
One more thought. 1.1 trillion is not even the sum of the current deficit spending. We are in trouble.