Frankly Speaking
Recent Blog Postings
Let Us Give Thanks
Posted by: Frank Lucas (11-19-2009, 02:54 PM)
There is much to be concerned about in this day and age. Our economy continues to suffer. The unemployment rate continues to rise. And we continue to be under the threat of terrorist attacks and home and abroad.
Posted in General | View Full Posting
Pelosi's Trillion Dollar Government Takeover of Health Care a Bad Prescription for America
Posted by: Frank Lucas (11-06-2009, 03:08 PM)
The debate over health care has reached a fevered pitch in our nation’s capital. Over the last several months, millions of Americans have spoken out at town halls, have called and written in to the White House, and have even made personal visits to their members of Congress to express their strong opposition to government run health care. Yet Speaker Pelosi has once again ignored their voices.
Posted in Health Care | View Full Posting
Pelosi's Government Takeover of Health Care Hurts Seniors
Posted by: Frank Lucas (10-30-2009, 03:18 PM)
No matter how many different ways she scores it, Speaker Pelosi’s health care legislation will cost the American taxpayers approximately one trillion dollars. Right now, the federal government is running a deficit – fiscal year 2009 ended with the government more than $1.42 trillion in debt – and our national debt continues to climb every day.
Posted in Health Care | View Full Posting
One Trillion, Four Hundred Twenty Billion Dollars
Posted by: Frank Lucas (10-28-2009, 10:59 AM)
One trillion, four hundred twenty billion dollars. It’s an astounding number. It’s more than the entire economy of India and enough to give every man, woman, and child in the United States $4700.
It is also our country’s federal budget deficit for 2009. That means that in the fiscal year 2009, which runs from October 1, 2008 through September 30, 2009, the federal government spent $1.42 trillion more than it took in. To put this in perspective, last year’s deficit was $459 billion – still an astounding number, but less than half the deficit for this year.
When our nation runs with a deficit like this year, we increase our national debt – or the total debt we owe over the life of our country. Our current national debt is $9.1 trillion, and climbing every day. The non-partisan Congressional Budget Office has projected that, under President Obama’s spending plans, our national debt will rise to $17.1 trillion by the year 2019, meaning an increase of $8 trillion over the next ten years. Most of this debt is held by foreign countries. China, not known for their great relations with our country, holds the most – more than $800 billion.
If numbers like this don’t shock you, maybe this thought will: what happens when these investors decide they want to cash in their T-bonds and T-bills? It’s not that hard to imagine. Right now, the United States government seems to have no interest in paying off any of our debts, so investors will be much more like to want to cash in their holdings or to purchase less T-bonds and T-bills. This would result in an even further drop in the dollar’s value and the federal government would be forced to pay higher interest rates to attract more investors.
Higher interest rates leads to an even higher national debt. For FY2009, the federal government paid $190 billion in interest. If our total debt rises to $17.1 trillion as the Congressional Budget Office predicts, our interest would quadruple to almost $800 billion by 2019. In comparison, the budget for the state of Oklahoma for FY2009 was $7.1 billion. So the federal government’s interest in 2019 would be more than one hundred times the state budget of Oklahoma.
Even worse, higher interest rates on T-bills and T-bonds would increase interest rates across the board, resulting in higher rates on loans to buy a home or to expand a business, which can lead to fewer new jobs and a decrease in our overall economy. In addition, the continued decrease in the dollar would cause the price of imported goods to rise, increasing costs for consumers, thus increasing inflation.
While I know there are economists who stand by the president’s plan to spend, spend, spend, I think that we must look down the road to see the real long-term effect it will have. Fiscal responsibility cannot just be a catch phrase used during elections. It must be a philosophy that we practice. If not for us, then at least for future generations on whom we are saddling this enormous debt.
Posted in Economy | View Full Posting
Government Run Health Care Not What the Doctor Ordered for Small Businesses
Posted by: Frank Lucas (10-27-2009, 10:49 AM)
As Congress moves closer towards solidifying a health care reform package, one thing is clear: the Democrats’ takeover of health care is bad for small businesses.
H.R. 3200, the health care bill currently in the House has a price tag of almost one trillion dollars. As our national debt climbs to over $9 trillion, the only way to pay for this legislation is by raising taxes. Speaker Pelosi and Chairman Waxman plan to enact a $544 billion tax on the so-called “rich” to offset the massive cost of their new program. However, according to the IRS, more than half of those targeted under this new tax are small business owners. In addition, they want to impose a $208 billion tax on businesses that cannot afford to pay for their employees’ health care.
Instead of calling this health care reform, perhaps Speaker Pelosi and Chairman Waxman should call this legislation what it really is: a massive tax on small businesses during one of the worst economic recessions of our time.
In addition to this being a dramatic hardship on our American small businesses, this tax would be devastating to the American worker. Small businesses represent more than 99 percent of all businesses in this country and have historically employed half of the American workforce. In addition, in the past, they have created more than 72 percent of new jobs across the country. So a hardship for them quickly translates into jobs lost and no new jobs created. In fact, it’s estimated that these new taxes will result in an estimated 5.5 million jobs lost. As the national unemployment rate continues to sit just below 10 percent, is this really a time to enact a massive, job-killing tax?
The American health care system is the best in the world, but there is always room for improvement. We need a solution for those who cannot afford health insurance. We need a solution for those who do not have access to health care. But that does not mean we need to completely alter our health care system and put it under the control of the federal government.
Posted in Health Care | View Full Posting