We need to overcome the confusions by Democratic politicians who have misused the terms “deficit” and “debt.” Let’s reframe the discussions about “deficits” and “debt” resulting when the Democratic Party achieved single party control of the White House and Congress on November 2, 2008.
US Debt Held by Public and Deficits 1776 to 2011
So, in just 4 years, the Obama Administration will have increased the U.S. national debt by $5.803 trillion. This extraordinary accumulation of debt nearly doubles the $5.808 trillion that was accumulated over the first 232 years of America’s history to $11.611 trillion. So, what is the Democratic Party’s solution to this debt problem? Tax increases, of course.
Democratic strategists hope that by pummeling Republicans with a proposed surtax on millionaires, they can soften the opposition enough to pass other targeted tax increases.
One such proposal, sponsored by Sens. Robert Menendez (D-N.J.), Bill Nelson (D-Fla.), Charles Schumer (D-N.Y.) and other Democrats, would eliminate tax breaks for oil and gas companies, raising about $40 billion over 10 years.
This proposed revenue increase amounts to $4 billion per year. At the rate of $4 billion per year, it would take 1,600 years to repay Obama’s cumulative deficits without even considering accrued interest.
With that said, how else do Democrats propose eliminating the deficit? Ending subsidies to a long-standing target of Democrats-oil and gas companies.
‘We have to look at corporate welfare and where we’re doing lavish subsidies to the oil and gas industry,’ Sen. Barbara Mikulski (D-Md.) said. ‘I’d like to start with the oil and gas industry. They make $75 billion in profits.’
Senate Democrats note the five biggest oil companies made $75 billion in profit even after BP reported $17 billion in losses following the Gulf of Mexico spill.
If the Democrats took all of the profits of the oil industry at $75 billion per year, it would take 85.4 years to repay Obama’s deficits. And, of course, this would precipitate the demise of the oil industry.
What else could be used to payback Obama’s accumulated deficits? If the stock of all privately owned homes was $20.150 trillion, the government would have to seize and sell 32% of all these houses to pay off Obama’s deficits.
If all the companies whose stocks are traded on the New York Stock Exchange and Nasdaq Stock Exchange had a cumulative market capitalization of $15.303 trillion, the government would have to seize and sell 42% of these companies to pay off Obama’s deficits. This seizure would result in massive layoffs and many employers going out of business, but it shows the enormity of the Obama deficits.
If the U.S. Government decided to sell all of the 650 million acres it owns, nearly 30% of the total land in the United States, for $1,000/acre, the U.S. Government would only be able to pay for 10% of the Obama’s deficits.
Are all these Democrats delusional about the Obama Administration’s outrageous and destructive spending? Or, do they know exactly what they are doing to accomplish a socialist destruction of the value of the U.S. Dollar and impoverishment of our economy and people?