E-Newsletter No. 96 December 2021
Last month’s newsletter was about Tyranny. This month’s letter is about Coercion. The sole power that any type of government possesses comes from its ability to coerce. In a Republic, the government is granted its powers, which include the power to tax, through the legislative process, from laws passed by elected representatives.
In the wee morning hours of Wednesday, December 15th, Congress voted to increase the federal government’s debt limit by $2.5 trillion, because our government has run out of cash (once again). Last month, we noted that the mantra “Taxation is Theft” is a little bit extreme, because we recognize there is a role for (limited) government, which must be funded via taxes. There is also another mantra “Government debt is simply future taxation” – – taxes that must be paid by our children and grandchildren. This is the unpleasant conversation that the citizens of our country need to have. Unfortunately, there are a number of people (most notably career politicians, Paul Krugman, etc.) who sidestep this “immorality” issue by saying that the government’s debt doesn’t ever need to be repaid. How did that line of thinking ever come about? It’s interesting to note how things have changed over the centuries.
“Avoid likewise the accumulation of debt… (the) throwing upon posterity the burden which we ourselves ought to bear.” – George Washington
“There are two ways to conquer and enslave a country. One is by the sword. The other is by debt.” – John Adams
“Think what you do when you run in debt; you give to another the power over your liberty.” — Benjamin Franklin
“I, however, place economy among the first and most important of republican virtues, and public debt as the greatest of dangers to be feared.” — Thomas Jefferson
“Blessed are the young, for they shall inherit the national debt.” – Herbert Hoover
“We don’t have a [multi-] trillion-dollar debt because we haven’t taxed enough. We have a [multi-] trillion-dollar debt because we spend too much.” – Ronald Reagan
This latest increase to the federal government’s debt limit was approved on a purely partisan basis. Earlier in the evening, every Democrat Senator approved the increase, and every Republican Senator voted No. In the House, every Democrat Representative approved the increase, and every Republican Representative (except for one GOP RINO) voted No. It is interesting to note that this vote was probably the “proper” (expedient) thing to do – – otherwise (with having no cash) the federal government would have begun to default on some of its payments. And obviously (to say the least) such an unprecedented event would have sent shock waves around the world, which has relied upon the “full faith and credit” of the US government.
There is no doubt that the Democrats needed to pass this increase to the debt ceiling, because there is no other way they could push forward with their “Build Back Better” bill. The cost of the original BBB bill was portrayed by the Democrats as being $3.5 trillion. With some changes, this amount was subsequently re-packaged as being “only” $1.75 trillion. But this was accomplished by using a number of budgeting gimmicks, the worst of which was to say that some of the programs would be for only a limited number of years. Upon further analysis by the independent Congressional Budget Office, it was learned that if these socialist programs were to become permanent (which is what the Democrats really want to have happen) the cost of the BBB bill increases by an additional $3 trillion. Where is all of this money going to come from?
It is interesting to note how the media has thrown its support behind the BBB bill and this unprecedented increase in government spending and debt. In one Associated Press article it was noted – One reason for Democrats’ urgency is that unless the measure (BBB) is approved by December 28th, the IRS won’t have time to prepare the January 15th checks to millions of families that receive the child tax credit.
Our Editorial Board continues to search the US Constitution for references to the child tax credit, or for any other indication as to why this is an appropriate role for the federal government, or why future generations are being called upon to pay for these January 15th child tax credit payments.
US Debt Clock – – November 1st – $86,915 per citizen / December 1st – $87,070