The Shutdown, Out of Control Spending, & Obamacare

The simple reason for out of control govt spending is that it is literally not controlled, as in not managed. Prior to 1978, each department had to submit (i.e. justify) a budget. Those that believe in Socialism decided that since they are spending other people’s money, why go through the hassle of actually determining for what they need our money. Once the money spigot is open, the primary managerial task of govt is to simply keep the spigot open. If this task can be automated, then management could significantly cut their workload. So, that is exactly what they did.

In 1978, Jimmy Carter significantly changed the structure of government funding and reporting. Instead of each dept submitting a budget, spending levels where simply increased based on CPI (Consumer Price Index), which is govt’s estimate of inflation. Besides the obvious irresponsibility of this approach, it also caused govt spending to explode in the 1980’s when inflation went through the roof (caused by govt policies, that started with Nixon’s overspending). This unjustified money produced the same thoughtless overspending that we saw with local govt’s that received windfall property tax revenue when govt policies caused the real estate bubble.

Now we have cost-push inflation, caused by enormous amounts of money printing that causes dollar-based commodities (which are over 85% of all commodities) to increase irrespective of actual growth. In fact, the large amounts of govt-supplied money (bad money) is squeezing out the good money and actually impeding growth, a monetary principle known as Gresham’s Law. Next will come rising cost due to tax inflation. Govt spending is permitted to rise irrespective of malfeasance, real growth, or if the growth comes from unsustainable debt/credit. If the govt doesn’t want to default, then prioritize the coupon payments and cut elsewhere!

Even though some local govt’s try to keep increasing property taxes and other taxes/fees to maintain bloated budgets, they eventually run into tax payer revolts that force taxes and budgets back down to tolerable levels. With the Federal Govt, if they can’t force through higher taxes, then they simply get their willing partners in crime, the Federal Reserve, to print the money to fund the overspending. They believe that the cost-push inflation, caused by their money printing that increases the cost of food and gas, will not be blamed on them. If people do complain about the ability to make ends meet, they simply print more money to issue more food stamps and disability checks. The end result is a Stagflation crime that is paid for by the folks and the real perpetrators getting the benefits.

I hope you can appreciate the downward spiral this credit Ponzi creates, which is exactly the predicament we now find ourselves. When you understand that the Fed’s printed money is used to buy interest bearing bonds from the money-center (to-big-to-fail banks/bankster) banks, you can quickly see that the interest expense can grow quickly, especially when rates revert back to the mean.

The common source of all the govt overspending problems is govt itself. They create the different types of inflation and malinvestment that causes the economic collapses, which is then used as the excuse to print and borrow more money to keep govt growing, and of course for politicians to maintain their power and perks. The complicit media then runs continuous news segments about all the laid-off/furloughed govt employees and vendors that leach off the govt largess to tug at our heart-strings to drum up public support to not shut down the govt.

Give me a break! The private sector has been decimated by the actions of govt, and we’re supposed to feel sorry for govt employees and opportunistic govt leaches?!? Do you realize that during all the past shutdowns, govt employees received all their back pay for the shutdown (vacation) time, even though they may have filed for unemployment?

I understand that you may feel that many of the people are “innocent victims”, but so are the millions that got laid off and had their hours cut from the govt-induced and real estate bubbles, and now Obamacare. I’m also sure there were “innocent victims” that lost their jobs making furnaces and chemicals sold to the Nazi’s.


Regardless of when Obamacare was introduced, it would be an unmitigated disaster, which is why other developed countries, and even some undeveloped countries have avoided a govt run, single-payer system like the plague. What else would one expect when it was written by the private insurance industry, which was drooling over the prospect of 50 million mandated new customers?

The fact that Obamacare is being rolled out during these dismal economic conditions ensures its demise. The system is dependent on young people who need little medical attention. Forgetting that forcing people to pay into Obamacare is an unapportioned, illegal direct tax (so says The Constitution), the reality is these young people cannot even find a job, much less pay a monthly health premium. If they have a job, they have a hard time even paying back their student loans. Also, because there is an oversupply of workers due to the crappy economy, employers have no problem converting full-timers to part-timers to stay under the 30-hour threshold for providing health coverage.

The only groups that benefit from Obamacare are the employers that can reduce their employers hours below 30, and the insurance companies that collect the premiums, or the IRS that collects the penalties. The very poor with no assets might benefit, provided their state accepts the Medicaid provisions of Obamacare. What a plan!?!

Obamacare is the stake in the heart of an out of control government that has sold us down the river of govt malfeasance, and it should be first of many agencies that should be shut down forever.

Ben Stein

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