January 5, 2010
Can we afford more deficit spending?
By James Wilson

The Second Session of the 111th Congress begins today. Let's tell them what their priority should be this year.

Tell them to cut federal spending!

You may borrow from or copy this letter:

In 2000, President Clinton projected that the national debt could be eliminated by 2009.

Instead, politicians from both parties have increased the national debt burden to over 90% of GDP, and now you guys are running even bigger deficits, supposedly to boost the economy. But there are two problems with this . . .

First, the economy did better in the 1990s when government deficits were smaller. Over the course of that decade,

* federal spending increased by 13% in constant dollars, while
* the economy grew by 37%

In contrast, during the eight years of George W. Bush  . . .

* federal spending increased by 35.6%, while
* the economy grew by just 18%

And this was before the housing bubble burst!

These facts indicate that increased government spending actually hurts the economy. The reason for this should be obvious.

The more the government spends, the less capital the private sector can utilize. Moreover, while federal spending may put more money in the hands of some people, it does not transform or "stimulate" the economy the way innovations in the private sector do.

The second problem with deficit spending is that we can no longer afford it. Consider this from John C. Goodman in Forbes:

"For some time, Social Security and Medicare combined have been paying out more than they are receiving in dedicated taxes and premiums. To cover that deficit, we have been drawing on the general revenues (mainly income taxes) of the federal government. Currently, we are taking more than 1-in-7 income tax dollars for this purpose. By 2020, it will be 1-in-4, and by 2030, 1-in-2. Basically, elderly entitlements are on a path that will crowd out spending on every other federal program. Throw in Medicaid, and health care spending alone will crowd out every other thing the federal government is doing by mid-century!"

Please do our economy and the next generation a favor. Dedicate this year to getting the federal government's fiscal house in order, NOT by increasing taxes, but by cutting spending, immediately.

If you do this, I'm convinced that voters will reward you in November.


You can send your letter here:

And please consider making a contribution to further our work.

Jim Babka
President, Inc.

Blog commenting is currently under construction. In the meantime, you can send an email if there's something you'd like to tell us.

What Can We Do For You?

We can help you downsize the federal government, if you want that. All you have to do is join. It's free! In return...

We'll give you an army.

We're recruiting a huge army of supporters to work for what you want.

We'll give you influence.

The Downsize DC Army will exert relentless, resistance-numbing pressure on Congress.

We'll make your voice heard.

We'll use our growing army to make your beliefs heard by everyone, everywhere, every day.

We'll give you winning strategies.

Ideas like our "Read the Bills Act" and the "One Subject at a Time Act" will give you the leverage to win the public debate, control Congress, and Downsize DC!

We'll give you powerful tools.

  • Your free membership includes a subscription to our free email newsletter, the Consent Chronicle, which national talk show host Jerry Hughes calls by far the best newsletter he receives.
  • You'll be able to use our Educate the Powerful SystemSM to pressure Congress. It's easy. All it takes is a few mouse clicks and keyboard strokes. You can do it in your bathrobe while you're drinking your morning coffee, or during a break at work.
  • You'll also gain access to our 16-page strategy document, "The Downsize DC Vision." You'll learn about important insights like "ignoring an axiom," and powerful strategies like "picking off the herd." One reader called this document "the unified field theory" of political change.

To gain these benefits, just enter your email address in the box below and hit Subscribe!

Subscribe to the Consent Chronicle
Enter your email address twice: