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Pat Buchanan: The fatal flaw of all democracies

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By PAT BUCHANAN

"We just can't afford it!" Not long ago, every American child heard that, at one time or another, in the home in which he or she was raised.

"We just can't afford it!" It may have been a new car, or two weeks at the beach, or the new flat-panel TV screen.

Every family knew there were times you had to do without. Every father and mother has had to disappoint their kids with those words. Why is it that what parents do many times a year politicians seem incapable of doing: saying no?

How many times in the last decade have the political leaders of either party stood up and declared, "No, we cannot afford this"?

Consider. Friday, the White House conceded that the deficits over the next 10 years will total $2 trillion more than they had reported just months ago. Instead of $7.1 trillion, we will run $9 trillion in deficits.

Meanwhile, the White House demands a new entitlement -- health care coverage for 47 million uninsured who can't afford it or refuse to buy it -- that will cost at least $1 trillion over 10 years. Can we afford this -- now?

"We can't afford not to," comes the retort. This is "a core ethical and moral obligation," says Barack Obama.

But is it not a core ethical and moral obligation not to debauch the currency in which most of the hard-earned wealth of the American people is invested? Yet, as Warren Buffett writes in The New York Times, collapse of the dollar and the end of its days as the world's reserve currency is what we are risking.

Government expenditures are running at 185 percent of revenue, which is like the lone family breadwinner earning $50,000 a year, while the family spends $92,500 a year. With families that do that, it is not too long before the credit cards are cut off, the mortgage is called in and the family Chevy is repossessed.

According to those same White House figures, this year's deficit will be closer to $1.6 trillion than the $1.8 trillion previously projected. Now, there are only three basic ways to finance that deficit.

The first is by borrowing the savings of one's own citizens, thus consuming the seed corn of the private economy. The second is by borrowing from abroad. The third is by having the Fed, "through a roundabout process," writes Buffett, "printing money."

Assume the Treasury borrows most of the savings of the American people this year, say, $500 billion. Then Uncle Sam is able to persuade Beijing to buy another $500 billion in Treasury bonds. The Fed must still run the printing presses to create another $600 billion.

How long before our Chinese, Japanese and OPEC creditors conclude that the Americans are depreciating their currency and dump their U.S. Treasury bonds, or demand a higher rate of interest to cover the risks of their dollar-denominated assets sinking in value?

Can anyone believe the dollar can even retain its present diminished purchasing power if we run $9 trillion in deficits over 10 years? How long before producers conclude the same and start to demand more dollars for their goods -- and inflation takes off?

As Buffett argues, even when the U.S. economy returns to full employment, the new tax revenue it would throw off cannot close a deficit of that size. One must either slash spending or raise taxes to balance a budget where the feds are spending a fourth of gross domestic product.

But how do we cut spending when the five largest items in the budget -- Social Security, Medicare, Medicaid, interest on the debt and national defense -- are untouchables and growing faster then the 3 percent to 4 percent a year a full-employment economy can manage?

Are we going to cut veterans benefits, spending on our crumbling infrastructure or education, when Obama is promising every kid a college degree? Are we going to cut funds for Afghanistan and Iraq, and risk losing both wars? Are we going to cut foreign aid after Hillary Clinton has been touring Africa telling one and all America is here to stay?

How about cutting funds for food stamps and the Earned Income Tax Credit? Good luck. How about PBS and the National Endowment for the Arts? Just try it.

Does either party have any plan to cut federal spending from today's near 28 percent of GDP to the more traditional 21 percent?

George W. Bush didn't even try, and Obama is making that Great Society Republican President look like Ron Paul.

When a democracy reaches a point where the politicians cannot say no to the people, and both parties are competing for votes by promising even more spending or even lower taxes, or both, the experiment is about over.

"Remember," said John Adams, "democracy never lasts long. It soon wastes, exhausts and murders itself. There never was a democracy yet that did not commit suicide."

Pat Buchanan is a former Republican and Reform Party candidate for President, an adviser to two Presidents and a syndicated columnist based in Washington, D.C.

YOUR COMMENTS


Great article! What about transparency and accountability for federal Representatives & Senators? They want to push 1000 page bills through without even having to understand the bill contents--or be able to explain to their constituents--bills that they say they don't have time to read through!!

Here's a question: why do our elected leaders tolerate a process that generates 1000 page bills--& 300 page amendments added at the last minute, or in the dead of the night? Does anyone have a rational answer? In the absence of a rational answer, here is my solution: mandatory drug testing for legislators--and they should all have to blow into a breathalyzer before voting to insure that they are sober when voting!

Seriously--professional athletes have a code of conduct and get drug tested--isn't protecting the public trust worth at least that level of vigilance?

Consider: it is illegal to pilot a boat, car or plane when intoxicated on alcohol or drugs--and many other public servants have mandatory, random drug testing--including truck drivers, cops, firemen, EMTs and air traffic controllers. Why not federal legislators?

CLEARLY--the legislative process is broke.

Maybe the reason why our leaders tolerate 1000 page bills--that they rush through without bothering to read--is because half of them are a bunch of drunks & drug addicts! (At least the drunks & druggies have an excuse; I'm reminded of the old joke "Nobody is completely useless--they can serve as a bad example!")

Drug testing legislators would not be an invasion of privacy. Legislators ask for our trust--they should be willing to prove they deserve it.

How can drug testing of Federal legislators be established? I believe the answer is contained in Article V of the US Constitution, which allows the for the states to call for a Constitutional Convention to amend the federal constitution.

Call me crazy...
- Paul, Sunapee

Wow, a lot of Obama Kool-aid drinking in this state... When last I checked, no one from the U.S. was going to Canada, Britain or Switzerland for life-saving treatment... But the hospitals across this country are filled with foreign nationals from the socialist utopias paying for these treatments out of their own pockets... Spending another $1 trillion for a lower standard of care (a.k.a. rationing) seems foolish... Move to Massachusetts if you want socialized medicine!!!
- Hedge, Newton

Mike in Nottingham,
Wow Funny Stuff.
I am not confusing care and Insurance.
typical republican tactic, confuse and issue. avoid reality.
We pay more money than any other country in the industrialized world on healthcare, bar NONE!!
By what definition do you use to determine the BEST Healthcare.
Infant mortality rates?
Life expectancy?
number of un insured?
We are Last in all 3!!
- Richard, manchester

Best health care? Don't make me laugh. Only the idle rich could say that as they cash their checks. How good is your health care if you are 27th in the world? If your life expectancy is three years shorter than Canada's. If your infant mortality rate is right next to Somalia? Lies and the liars who tell them live here.
- Bob, Deerfield

It's gotta be broke people saying we're broke, because America's rich are doing better now than at any time in our history. Have an unpaid for war and give the most wealthy a tax break. Then open up regulation so these same people can game Wall Street and make more billions while forcing the economy to tank. This was the Bush version of the failed policies of Reaganism at work.

The top 1/100th of 1% (.01%!) of Americans have 6% of all the wealth, higher than at any time in US history. Since 1980 the top 1% have seen a 700% increase in wealth while the middle class wealth rose 27%. Reaganism (lowering taxes to stimulate the economy) pumped the whole national wealth into fewer and fewer hands. Now the broke think everyone is broke. Ha the joke's on you! We're doing pretty good here in Rye! Thanks for the low taxes!
- Louis, Rye

Pat's a good speechwriter and he's seen a lot. But as he has millions in income & stands to get pounded when we tax his bracket to get universal coverage, his opinion is easy to predict. He has a nice way of rounding up the usual koolaid addicts with simple arguments that are usually too simple. Pat's a corporate hack for big business.

Ron Paul makes the same arguments but has the intelligence to point out that we have plenty of money, if we stop subsidizing overseas wars to the tune of hundreds of billions per year every year.

Of course Ron Paul is no corporate hack, he's a conservative libertarian who wouldn't spend for healthcare if it caused no deficit at all, as he is an ideologue for the sake of it. But at least he's honest about the insane defense budget.

France, Britain, Canada, and Switzerland each have versions of universal coverage that result in them living LONGER than us at HALF the expenditure. What they don't have is corporate hacks and libertarians stalling progress.
- Ruth, Bedford

The federal government is bankrupt. Literally. It's not just not quite visible yet, but all it will take will any one of a few major foreign creditors (most notably China) to say that they're no longer going to lend money to the USA because everyone knows the USA cannot pay it back. When that happens, Federal Reserve Notes (often called "money") will revert to their inherent value: zero.

At that point, everything the federal government does other than entitlement programs (and probably those too) will be gone, because they are currently funded by nothing but borrowing. When the borrowing is gone, the federal government is gone. All that will be left will be a shell of a system, and it will demand high taxes for no services; all it will do is try to make payments on its debts.

I hope that states are getting ready to pick up the pieces themselves when this happens. There's no reason to keep a bankrupt federal government as a noose around NH's neck.
- Jack, Concord

Pretty ironic to read first post calling someone vain and misusing the term, "socialist."

I think that if you write you are obligated to respect the dictionary definition of words, unless YOU are vain!
- Ellen, Dover

"This man should have been put in the White House in '92"

I agree. I voted for him in the primary. Good to see Mr. Buchanan appearing here again.
- Tom, Campton

Our ship of state was purposely steered by captain and crew, directly into the giant iceberg.
This giant berg was to make the whole crew rich, and those passengers rich enough to be in the lounge along with them. The ice giant represents 3rd world economies, The crew is our government, and in the lounge are the moneyed investors. Well, as the ice giant melted, and the damage that it created became more visible, the entire ship of fools retired to the lounge to point fingers at each other. But, what they did wrong is never discussed. End Free Trade, end Globalization. Restore Equalization Tariffs, Restore Fair Trade policies. A nation that creates nothing is nothing. A nation that has workers in good (manufacturing) jobs, thus paying taxes into a growing tax base, not a shrinking one as now, could actually afford
some type of universal/private health care system. No one can be saved if we allow the ship to go down, as no one will come to the rescue. Action had better be taken to save it, as it presently emulates the Titanic.
- Alexander Mackenzie, Rochester

A lesson for Richard in Manchester.

The US has the BEST Health-CARE system in the World. The Insurace in this country ran much better when the government wasn't mandating things.

You are confusing insurance with care. While the other industrial nations cover their workers, they also have the highest tax rates of the Industrial nations, there health CARE systems stink, they ration the needed care, they have much higher cancer deaths, much higher disease related problems, and their life expectancy is much lower. Their people try to come here to get the care they cannot get anywhere else.

If you and your socialist government needy folks think that these nations are so much better, I suggest you move there. Good luck Komrade.

You are obviously unhappy here that the PEOPLE, you know, the ones that are SUPPOSED to have a say, do not want this government trillion dollar health insurance they way we say package.
- Mike, Nottingham

His points are well made. Too bad the GOP just came out with a plan where they said they won't cut entitlements to the elderly and will never raise taxes. Voters will have to look elsewhere to solve any of this. Neither party deals with reality.
- Steve B, Derry

We spent the USSR to death and now we are spending ourselves to death. The economic situation is very critical.
- Jim, Manchester

DO the math.
Last in the industrializd world in Health care.
Yet we pay TWICE as Much Money for healthcare.
More than any other country.
So we have the worst healthcare yet pay the most money.
Any other business would be bankrupt.
Making changes to address the issue.
It is funny we can find the money to go to Iraq to fight a FAKE WAR.
Build bridges and schools in a foriegn country, but we cannot institute a healthcare system that will actually save us money and give everyone a chance at good health.
Keep up the good work UL! NOT
Just a few more ingnorant editiorials and you just may win.
- Richard, manchester

We are either one Czar away from being broke or one Czar away from loosing our freedom or both. Yet we keep electing those who grow government by making promises we can not afford to those who find it too much like work to go out and fend for them selves.

If I hear the Dem's say one more time we are the richest nation on the planet so we can afford this or that in a handout program I'll scream. A nation creates wealth when it's citizens are willing to go out and work for it and from what I see that simple value has been traded in for welfare checks, section eight housing, and blocks of cheese. If it's not enough money simply pop out another kid from another father. Remember that the next time you hear the words "A living wage" and the jobs that supported those with little ambition are over seas and the tax payer now takes care of their needs.

Nothing creates ambition like going without. Well at least for half of us and none of our politicians. Bow to our new government God. No faith or effort needed.
- Deb, Derry

Mr Buchanan you made several valid points, however we are not engaged in a single war, let alone two. Both Iraq and Afganistan are occupations. Our first socialist president, like hitler and bush doesnt even understand the word soveriegnty. Obama clearly stated .that "victory" was too strong a word to use in Afganistan. When victory is not an objective the military is not the right tool. War, is horrible though sometimes necessary. In Afganistan we were justified in waging war after September 11. In Iraq, there were never WMDs. Bush and Powell used bogus data to convince us WMD were real just like Al Gore did with global warming. In both cases (war and global warming) the American people lose. We lose lives and we lose the ability to use our money wisely.

Parents who "disappoint" their children with the words "we can't afford it" misss a golden teaching opportunity. Instead, give them a choice, you can have the video game or you can have a bike. Let them make the choice and hold them accountable. It teaches them the most basic foundation of economics, the concept of limited resorces.

Kids, try telling your parents "we can't afford not to" when you want something. It worked on over half of them last year.
- Michael Layon, Derry

Great piece. No mud slinging towards either side. He simply states the reality and asks a question. Dem or republican - we need to decide what gov't is for and then budget accordingly. I pray for my children. Heck, I pray for my own livelyhood.
- CJ, Manchester

This man should have been put in the White House in '92
- Lou DeMato, Manchester

The political class has as its primary job securing reelection. To do that you buy votes by "giving stuff" to various constituents. The left does this better, and has the Main stream media provide them more favorable cover, but both parties are guilty.
- jeff, Goffstown

Obama is a vain socialist who wants to solve every problem by having the government dictate to citizens. But he often campaigned as a moderate, because he is shrewd enough to know what he can and cannot get away with.

But the Republican Party of Bush, McCain, Gregg, and Jeb Bradley gave and gives Obama the confidence that Republicans CANNOT CRITICIZE HIM for reckless deficit spending. They would seem hypocritical. Their dalliances with pork-and-favors governance cleared the way for him to practice it full-scale.
- Spike, Brentwood NH

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