{"id":36819,"date":"2010-11-11T01:01:01","date_gmt":"2011-05-19T00:20:31","guid":{"rendered":""},"modified":"2011-05-19T00:20:31","modified_gmt":"2011-05-19T00:20:31","slug":"the_debt_commission_is_a_trick","status":"publish","type":"post","link":"https:\/\/www.rushlimbaugh.com\/daily\/2010\/11\/11\/the_debt_commission_is_a_trick\/","title":{"rendered":"The Debt Commission is a Trick"},"content":{"rendered":"
\n

RUSH: This debt commission report, Irksome Bowles, Alan Simpson, forget it. It\u2019s worthless. The premise is totally corrupt. Don\u2019t get caught up in debating any of the minutia or the aspects of this thing. It\u2019s a setup; it is a trap. All it does is cement the notion of expanded government spending ad infinitum. I\u2019ll give you a couple of reasons why I\u2019m saying this but I\u2019m not gonna waste my time like I see \u2019em doing on the news networks dissecting this stuff. There\u2019s nothing bold about it. There\u2019s nothing revolutionary about it. It\u2019s a trick. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: The unions are beside themselves. The unions cannot believe what\u2019s happening. Because the ratio in this deficit commission report, the ratio of spending cuts to tax increases is 75 to 25. That alone makes me think the whole thing\u2019s a trap. Seventy-five percent of the ‘savings\u2019 are spending cuts. Twenty-five percent of the revenue changes are tax increases. Well, Pelosi\u2019s looking at that, Durbin is looking at that, and they say, ‘Whoa, there is no way!\u2019 The unions are going bonkers. Our guys are kinda getting sucked in here on the Republican side. ‘There\u2019s… Well, you know, you have to look at it. There\u2019s some potential here, maybe some things to work with.\u2019 <\/p>\n

The dirty little secret about this is that what it does is establish as a premise the notion of gigantic government. Right after the break, I\u2019m gonna explain this to you. There was a great post at Ricochet.com, which is a new blog out there by Peter Robinson, and there\u2019s a post by a guy named Steve Manacek, who has analyzed this and has come up with some absolutely scary analysis. Well, it\u2019s not analysis. He has found scary admissions in this thing such as the level of government spending expressed as a percentage of GDP. It\u2019s skyrocketing under this proposal. So all this talk about spending cuts, it\u2019s smoke and mirrors. Anyway, if Obama has blinked he can be made to blink again. If we stand firm.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: From Politico… This is not good. I mean, you\u2019ve got Richard Trumka out there, union thug leader, pronouncing the details of the deficit proposal as ‘unconscionable.\u2019 Working Americans are taking it on the chin here, getting the shaft. The unions don\u2019t like it, Dick Durbin doesn\u2019t like it, they\u2019re ‘tax cuts for the rich,\u2019 and now this from Politico: ‘President Barack Obama failed to reach agreement on two international deals to help spur the U.S. …\u2019 <\/p>\n

Now, just this morning I read that Obama was close to just taking over that G20. He was having his way with those members, and he was gonna make sure that jobs were created for the American people by virtue of his command of the issues and his leadership capability — and now all of a sudden he\u2019s a nonentity, from Politico. And they\u2019ve got an inside track to this bunch. ‘President Obama failed to reach agreement on two international deals to help spur the U.S. economy, unexpected setbacks on an Asia trip that was supposed to emphasize Obama\u2019s stature abroad and change the subject from last week\u2019s electoral drubbing.\u2019 Emphasize his stature abroad? He doesn\u2019t have any! <\/p>\n

You people in the Drive-Bys tried to create this notion, this image, this aura of stature. How…? Would you explain to me how it is that these worldwide leaders at the G20 are gonna think a guy arriving two days after having his party wiped out in midterm elections has any stature. I don\u2019t follow the logic. What are these guys over there supposed to say? Lula in Brazil, the South Korean guy, what are they supposed to say? ‘Oh, my gosh! Make way, here comes The Messiah. Here comes Obama. He just got creamed in the midterm elections, but make way for Obama. I don\u2019t know if we have the ability to even be in the same room.\u2019 Who are we kidding here? The Democrats in this country, Democrats in the Senate know they elected a mistake. They know they\u2019ve got something untenable in the White House. <\/p>\n

Look, there\u2019s even more in this in the Stack of Stuff coming up. There\u2019s even more. We\u2019re talking about this on MSNBC. I gave you the low down on this on Monday. People are still talking about the debacle that Obama is for the Democrat Party. This notion he\u2019s gonna have stature over there in the G20? ‘Obama was unable to achieve a free trade agreement with South Korea.\u2019 South Korea! ‘Vowing to keep talking to get a better deal for US automakers.\u2019 What does he need South Korea for? Have you heard the big news? GE has said there are gonna be 25,000 Volts — big whoop — 12,000 of them in the first phase. This is all about trying to get the IPO price up. So General Electric is gonna buy cars.<\/p>\n

You people that work for GE who get a company car, aren\u2019t you excited? Pretty soon you\u2019re gonna be driving a Volt. It gets 40 miles to the charge. (laughs) I\u2019m trying to be nice here. So Obama was unable to achieve a free trade agreement with South Korea, and after meeting with the leaders of Germany and the ChiComs, ‘he continued to meet resistance from the two countries about reducing their trade surpluses with the US to give a boost to American manufacturing, putting the best face on a compromise that only calls for the goal of lowering them.\u2019 One of the things I think that we\u2019re all messed up on here is when we look at our economy and these guys in charge of fixing it are missing the one key, most important element. Everybody\u2019s focusing on exports. <\/p>\n

‘We got a trade imbalance with the ChiComs. They\u2019re exporting to us and we gotta figure out a way to export to them.\u2019 No! We gotta figure out a way to create American customers, period, for anything. You can sit around and you can print all the money you want. You can do QE2, QE3, you can go up to QE15. You can do all the magic wands you want. Until you create consumer demand for anything in this country, you can whistle Dixie about having export parity with the ChiComs. Back in June, by the way… You may have forgotten this. Back in June Obama was the only G20 leader who refused to pledge to cut their government deficits by half. So here you have General Electric buying 25,000 Volts and the ChiComs are buying stock in General Motors. <\/p>\n

And we\u2019re running around printing money and we got a deficit commission panel, which essentially is establishing the notion of an ever larger government. Let me get to that right now. I\u2019ve teased you with this. This is Steve Manacek, ‘What am I missing?\u2019 This is yesterday a post at Ricochet.com. ‘The National Commission on Fiscal Responsibility and Reform has released its co-chair\u2019s proposal.\u2019 By the way, the membership didn\u2019t even know they were gonna do it. The other commissioners had no idea that Irksome Bowles and Alan Simpson Babe were gonna release this thing. Durbin, by the way, Dick Durbin, is one of the commissioners. And he was fit to be tied. He didn\u2019t know they were gonna do this. <\/p>\n

‘A lot of introductory verbiage could have come straight from the mouth of Ronald Reagan. Cut and invest to promote economic growth, cut spending we simply can\u2019t afford wherever we find it, reform and simplify the tax code, broaden the base, lower rates, bring down the deficit.\u2019 I shared all this with you yesterday, and so on. ‘There are pages and pages of more or less specific proposals, some more pleasing to conservatives, others to liberals. But here\u2019s what I don\u2019t get about the initial reactions,\u2019 Mr. Manacek writes. ‘Putting aside all the minutia and all the detail the crux of the proposal comes down to two points: Capping federal government expenditures at 22% of GDP and capping revenues at 21% of GDP. <\/p>\n

‘Each of these represents a big problem. The first is on the spending side. Except for the anomalous stimulus bailout recession years of 2009 and 2011, federal government expenditures haven\u2019t reached 21% of GDP since the collapse of the Soviet Union,\u2019 and Mr. Manacek writes here, ‘Except for the anomalous stimulus bailout recession years 2009 and 2011.\u2019 The whole point — if you want to really know the dirty little secret (I know I overuse that phrase) — the truth about the stimulus package was to increase the baseline on which future budgets are built. In two years, they increased the baseline around 20%, maybe even more. He\u2019s out there saying, ‘shovel-ready jobs,\u2019 and then he said there aren\u2019t any shovel-ready jobs. It was never about jobs as we know. <\/p>\n

There weren\u2019t any jobs that were created. We continued to lose jobs. It was rhetoric. Jobs created, jobs saved? This was about massively increasing the budget for all time. That\u2019s what the stimulus bill was, to up the baseline. Now, those of you have been regular listeners since the early nineties know all about baseline budgeting. We spent a week explaining it to you. The baseline is simply the amount every year that every budget item is based on, whether the item is overfunded or underfunded, it doesn\u2019t matter. So when Mr. Manacek writes here, ‘Except for the anomalous stimulus bailout recession years of 2009 and 2011, federal government expenditures have not reached 21% of GDP since the collapse of the Soviet Union.\u2019 <\/p>\n

But they did with the stimulus. Permanently. The stimulus raised the baseline, and so now this debt commission comes up and says, ‘We\u2019re gonna cap federal government expenditures at 22%.\u2019 But the problem is we\u2019ve never spent 22% of GDP. Since World War II. Spending only competed 21% of GDP during the Reagan-Bush military buildup of the eighties and nineties. For virtually all of the Clinton and George W. Bush years and during all the Kennedy-Johnson-Nixon years, federal spending ranged between 18 and 20% of GDP\u2019, and this deficit report caps it at 22%. It raises the baseline exactly what the stimulus was. <\/p>\n

This thing is a blueprint for the expansion of government and codifying it as law, at 22%, when we\u2019ve never spent that, up until Obama shows up. That\u2019s one side of this. ‘The more important problem is on the revenue side. According to OMB figures, federal revenues have never reached 21% of GDP. That\u2019s what they are targeted to be in this initial report that came out yesterday. In fact, only in Bill Clinton\u2019s final year in office and during World War II did revenues even exceed 20% of GDP. During the whole time from 1960 to 2008, federal tax revenues almost always fell between 17 and 19% of GDP, only occasionally rising above 19%, chiefly in Clinton\u2019s second term or below 17%, George W. Bush\u2019s first term.\u2019 <\/p>\n

Look, there\u2019s a lot of numbers here. The bottom line is federal spending has never been as high as what this deficit commission report suggests, and federal taxes have never been as high as what this deficit commission report suggests. This is a trick, and it\u2019s got all the Reagan language in there and it\u2019s got all the stuff that sucks our side into saying, ‘Ohh, yeah, we\u2019ll look at this.\u2019 You got the left not liking it because they don\u2019t like the ratio of 75% spending cuts and 25% tax cuts, but there isn\u2019t any cutting! It\u2019s just like every year of the federal budget: There\u2019s nothing being cut here. Taxes, spending, zilch. It\u2019s all going up to unprecedented levels in our history and that\u2019s the truth about this.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: One more reason to totally ignore the commissioner\u2019s report yesterday on the deficit reduction panel report. They don\u2019t even mention getting rid of health care, and if you are serious about reducing government, if you\u2019re serious about tackling our debt, you gotta repeal it. You cannot have any element of it. They don\u2019t even talk about it. It\u2019s just baseless. Well, it isn\u2019t baseless. It\u2019s dangerous what this report does \u2019cause it\u2019s a trick. It\u2019s sucking our guys in, ‘Oh, wow, look, Reagan language in there, broadening the base, oh, yeah, I kinda dig the lower rates in there, I really do, love the spending to tax cut ratio.\u2019 Take your cue from the left. They hate it. They hate it, and they\u2019re stupid. If they understood what this thing actually proposed they\u2019d be out there trying to get it passed today. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Let\u2019s move on to Alan Simpson Babe. By the way, people are asking, ‘What are you calling him Alan Simpson Babe for?\u2019 Because he calls me Rush Babe. When he was named to this commission, he said, ‘I know Rush Babe isn\u2019t gonna like it. Rush Babe\u2019s got a problem with me.\u2019 I never have had a problem with Senator Simpson. He\u2019s from Wyoming, a great state. He calls me Rush Babe so I\u2019m calling him Alan Simpson Babe. Yesterday on Capitol Hill, the bipartisan debt commission press conference, this is Alan Simpson.<\/p>\n

SIMPSON: We have harpooned every whale in the ocean, and some of the minnows, and no one has ever done that before. I feel like we ought to be in a witness protection program when this is over, so look us up.<\/p>\n

RUSH: Yeah, well, the truth of the matter is, if you look at this, I don\u2019t want to be redundant here, but this is a boondoggle, folks, it\u2019s a mistake, it\u2019s a trick. This thing locks in levels of federal spending and taxation. It\u2019s not gonna get adopted, either. This is not going to be adopted in its form. I don\u2019t know what they\u2019re doing, trial ballooning it or what. But the thing that these two guys presented yesterday locks in federal spending at levels that we\u2019ve never reached other than during anomalies, and federal tax levels that we\u2019ve never had. Forget everything else you know about it. The report yesterday locks in the concept of an ever-expanding government. It does not change one premise. It does not suggest reforming, repealing, getting rid of health care. Now, if you\u2019re in part of a deficit reduction panel and you don\u2019t even talk about the health care bill, you are not serious. This thing locks in the Nanny State. This thing locks in socialism. Here\u2019s Anthony Weiner last night on PMSNBC. ‘Anybody gonna like this plan? Anybody?\u2019<\/p>\n

WEINER: What\u2019s infuriating, putting aside the content, never mind it\u2019s not a plan to reduce the deficit, so much (as) a plan to reduce seniors and reduce just about anyone else. This is very bad.<\/p>\n

RUSH: Well, okay, so reduce seniors. That\u2019s what health care\u2019s gonna do, Mr. Weiner. Health care is gonna reduce seniors, and reduce just about everything else. By the way, here\u2019s another thing, just to show you that this thing is not serious and it isn\u2019t going to fly. You know, every year the Congress does a budget, president submits his version, and the budget includes things that happen five years out, ten years out. But have you ever noticed those things are never locked in? They can\u2019t be. The budget is for one year and the next year\u2019s Congress redoes it, to hell with what it said. The only reason these Bush tax cuts survived is because they happened during reconciliation, and that\u2019s why they sunset. It\u2019s a whole different matter. The retirement age for Social Security goes up to 69 in 2050? I\u2019m sorry. Does anybody think that the people and a Congress in 2050 are gonna live with what the yokels in 2010 wrote? Would we sit here and live with what the yokels in 1970 wrote for us? In large part we are on the entitlement side, but look at where it\u2019s got us. They\u2019re not gonna put up with it. You can\u2019t come up with a plan that\u2019s gonna lock the country in 50 years down the road and people not even born yet, affected by it, not change it and put up with it.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: This debt commission report, Irksome Bowles, Alan Simpson, forget it. It\u2019s worthless. The premise is totally corrupt. Don\u2019t get caught up in debating any of the minutia or the aspects of this thing. It\u2019s a setup; it is a trap. All it does is cement the notion of expanded government spending ad infinitum. 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