When one has a financial condition one is unlikely to cut off sources of revenue, if one can help it.. Reduction of revenue (like reduction of taxes) does not improve our financial means.
In the case of the U.S. Government, we have been in recession for several years. But when we see members of congress “at work,” they do not appear individually to be displaying any signs of this condition themselves nor any state of real urgency.
We have been spending more than has been coming in for about 10 years and for much longer than that.. And during the last year of President Bush's administration we gave billions to banks and members of Wall Street to keep firms from going broke during the recession.
They've done well since. Some showing annual profits in the Billions. And we've reduced taxes on the rich and the very rich and therefore, reduced a chunk of the incoming revenue. The reason for doing this, is that we've gone one step beyond “we don't raise taxes during recessions,” we've lowered taxes.
If we have minimum revenue coming in and we cut some of it off, we cannot pay on our debt, which we haven't done for years and “we don't try to pay the debt off during a recession” either as we can't even balance the budget.
Spending cuts is supposed to create positive conditions for business. But the claim now is that we're broke. If we cut off $100 billion here and there we won't look so broke. And we can't spend when we're broke? How does business react to the notion that the national government is broke?
They don't believe it. How can they believe it when some profits are in the Billions? How can they believe that we're broke? But if we get rid of many of the social programs that they've hated for years under the claim that we're broke, that would make them feel as good as not having to pay taxes.
So here we are. Some businesses, like oil businesses are making profits in the Billions and government is broke. A number of countries who consider oil to be a natural resource have contracts with oil extracting and refining companies. By sharing the profit these countries increase their revenue source.
Here, it seems, we pay subsidies to oil companies instead. If we had good contracts with oil companies we'd have billions that we could pay directly toward the debt and in so doing create secure conditions for business growth. There is natural gas and coal too, which might return some of the profits.
So we're really not broke, when we think of all the wealth we have as a country. It's just that fiscal thing. Perhaps it's the rules that are wrong. If we got to the same type of fair tax system that we had under President Reagan we'd have a good deal of revenue coming in.
So we should change the rules somewhat and that is usually easy for our rational Congress to do. So you see, we're not broke, we just don't like Social Security, Medicare, Medicaid, “Obamacare,” Planned Parenthood, Unions with their bargaining rights, “public” school teachers and public workers.
We especially don't like abortion rights and any birth control kind of things. Those rights are not in the Constitution.
So it's more than being “broke,” it's the culture change too that makes us feel a little more “broke.” We seem to have a President that doesn't look like the rest of us, at least not like some of us that used be the majority
So all of this somehow does bother us a little bit. That kinda make us think “broke” . . .