Obama's budget: Mr. Usurious
President Obama trotted out his fiscal 2014 budget on Wednesday. It already has been filed in the “fiction” section of the Library of Congress.
Among the lowlights of the inventive but unsustainable $3.78 trillion spending blueprint that The New York Times refers to as “a host of better ideas that put Republicans on the spot,” a plan that, for next year, will see the debt rise to more than 78 percent of the nation's gross domestic product:
• Increased college aid, which will only give colleges more cover to keep jacking up tuition far in excess of inflation
• Increasing the minimum wage, a surefire way to increase unemployment among teens and minorities
• More money for “high-speed rail,” the feel-good boondoggle of the decade
• Lots and lots (and lots) of money for “green energy,” tripling down on the administration's mantra of “If at first you don't succeed, fail, fail again.”
Deficit reduction doesn't come from real cuts — or even Washington's interpretation of cuts (reductions in the rate of spending increases) — but from, SOO-PRISE! SOO-PRISE!, tax hikes.
Savings? Penalized. Investment? Penalized. Profits? Penalized. And most all of it at rates that, if charged by the lending industry, would redefine “usurious.”
“The president promises that more government spending will boost the economy,” says S.T. Karnick, research director for The Heartland Institute. “That is just more failed Keynesianism — the premise that government spending magically grows the economy.”
Mr. Obama's budget “is a fine prescription for a recession,” Mr. Karnick says. It is an unserious document that, if enacted, would have fatal consequences.