Video- John Boehner: Obama "Would Not Take Yes For An Answer'

"The sad truth is that the president wanted a blank check six months ago, and he wants a blank check today. That is just not going to happen."--- John Boehner

Video below:



Text of John Boehner's speech to the American people after yet another round of negotiations with Barack Obama imploded can be found here and Obama's bully pulpit speech can be found here.

Obama has used his bully pulpit six times to bring the case to the American people as he threatened Eric Cantor he would do when Obama told Cantor to not "call his bluff."

Something very disconcerting has happened for Barack Obama, his plan to bring his case to the American people is backfiring on him in a massive way.

Even before last night's dueling Obama/Boehner speeches, polling was showing the more he speaks, the less support he is getting from the public. As we showed yesterday, three separate polls showed the GOP has gained the trust on economic issue over Democrats by a 10 percent margin as well as being trusted more on 9 out of ten issues presented to likely voters, Barack Obama is showing the highest level of Strong Disapproval since last November and the majority of voters have more fear the debt deal being negotiated in Washington will raise taxes too much and cut spending too little.

LA Times' Top of the Ticket's Andrew Malcolm points out that Rasmussen is not the only polling organization showing the decrease in support for Obama.

Now, comes a new ABC News/Washington Post poll with a whole harvest of revelations, among them, strong indications that Obama's liberal base is starting to crumble. Among the nuggets:

Despite those hundreds of billions of blown stimulus dollars and almost as many upturn promises from Joe Biden, 82% of Americans still say their job market is struggling. Ninety percent rate the economy negatively, including half who give it the worst rating of "poor."

Are You Better Off Today Than Jan. 20, 2009?

A slim 15% claim to be "getting ahead financially," half what it was in 2006. Fully 27% say they're falling behind financially. That's up 6 points since February.

A significant majority (54%) says they've been forced to change their lifestyle significantly as a result of the economic times -- and 60% of them are angry, up from 44%

More:

"More than a third of Americans now believe that President Obama’s policies are hurting the economy, and confidence in his ability to create jobs is sharply eroding among his base," the Post reports.

Strong support among liberal Democrats for Obama's jobs record has plummeted 22 points from 53% down below a third. African Americans who believe the president's measures helped the economy have plunged from 77% to barely half.

Obama's overall job approval on the economy has slid below 40% for the first time, with 57% disapproving. And strong disapprovers outnumber approvers by better than two-to-one.

Yesterday Gallup also found that Obama's job approval rating for the week of July 18-24, tied for the lowest weekly average of his administration at 43%.

Even the media, which recent polling has shown the majority of the public believes is politically biased in their reporting with 2 to 1 saying it favors Democrats, is starting to notice that Obama speaks a good game but has not offered any solutions himself, and that Obama seems to be "out of the loop."

Last week Pew Research polling found that the GOP has gained support from every demographic but Hispanics:

Republican gains/losses:

4 percent gain among all voters
6 percent gain among whites
2 percent gain among blacks
6 percent loss among hispanics

Republican gain among whites broken down by age groups:

10 percent gain among those aged between 18 and 29
6 percent gain among those aged between 30 to 49
5 percent gain among those aged between 50 to 64
5 percent gain among those over 65 years old

Republican gain among whites broken down by income:

2 percent gain among those making $75K or more
7 percent gain among those making $30-75K
10 percent gain among those making $30K or less

The GOP has stood firm on fighting for everything they promised when they campaigned for the 2010 midterm elections and saw the largest gains in net seats in the House of Representatives than has been seen in over 70 years. Cutting spending, showing fiscal responsibility, forcing Obama to stop spending more than we have and fighting to lower our debt and live within our means.

Republicans in the House have passed bills to address these issues, such as the Cut, Cap and Balance Act, which then the Democratically controlled Senate killed by tabling it after Obama threatened to veto it and that bill would have offered the debt limit increase.

The more Obama talks to the public, the more his support erodes and yet as disconnected from reality he is, his stated goal to kick the can down the road until after the 2012 elections, is not resonating well with the voters in the U.S.

Yet he keeps talking...........

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Polls: High Obama Disapproval, Party Trust and Taxes Vs Spending Cuts

Multiple polls from Rasmussen over the weekend show that the GOP has gained the trust on economic issue over Democrats by a 10 percent margin as well as being trusted more on 9 out of ten issues presented to likely voters, Barack Obama is showing the highest level of Strong Disapproval since last November and the majority of voters have more fear the debt deal being negotiated in Washington will raise taxes too much and cut spending too little.

Rasmussen- Trust on issues

The latest Rasmussen Reports national telephone survey of Likely Voters shows that 45% trust Republicans more when it comes to handling economic issues, while 35% put more trust in Democrats. Nineteen percent (19%) are undecided. (To see survey question wording, click here.)

.......

Voters now trust Republicans more than Democrats on nine of those 10 issues. In May, Republicans led on just six issues after being trusted more on all 10 in early January. Two years ago Democrats were trusted more than Republicans on most issues. Still, there are several issues that the parties are close on in terms of trust.

Health care, which voters rank second behind the economy in terms of importance, is an issue the GOP holds a tight 46% to 43% advantage on. Before President Obama was elected, Democrats had a huge advantage on this issue. During Election 2010, the advantage switched to the GOP. In May, the parties were essentially tied.

.......

Taxes are a big part of the debt ceiling debate, and voters trust Republicans more than Democrats by a 46% to 40% margin on that issue.

.......

The one issue Democrats do hold an advantage in trust on is education, 42% to 38%. Nineteen percent (19%) aren’t sure which party they trust more, however.

The parties are nearly tied on the issue of Social Security, with Republicans holding a statistically insignificant 42% to 40% lead. In May, Democrats barely edged the GOP on this issue.

Republicans hold a slight 38% to 35% edge in the area of government ethics and corruption, a reversal from the modest lead Democrats held in May. But 27% of voters don’t know who to trust more on this issue.

On immigration, Republicans hold a sizable 47% to 33% advantage, with 21% of voters are undecided.

.......

As is always the case, Republicans hold the trust advantage when it comes to national security and the War on Terror and the handling of the wars in Iraq and Afghanistan.

Rasmussen- Taxes and spending cuts

The latest Rasmussen Reports national telephone survey finds that 62% of Likely U.S. Voters are worried more that Congress and President Obama will raise taxes too much rather than too little in any deal to end the debt ceiling debate. Just 26% fear they’ll raise taxes too little. Twelve percent (12%) aren’t sure. (To see survey question wording, click here.)

Similarly, 56% worry that Congress and the president will cut spending too little in the final debt ceiling deal, while only 25% are concerned that they will cut spending too much. Nineteen percent (19%) are undecided.

Rasmussen- Obama Approval/Disapproval

The Rasmussen Reports daily Presidential Tracking Poll for Sunday shows that 23% of the nation's voters Strongly Approve of the way that Barack Obama is performing his role as president. Forty-four percent (44%) Strongly Disapprove, giving Obama a Presidential Approval Index rating of -21 (see trends).

That’s the highest level of Strong Disapproval since last November.

......

Overall, 45% of voters say they at least somewhat approve of the president's performance. Fifty-four percent (54%) at least somewhat disapprove.

Once again I will point out that polling, especially this far away from the presidential election, is simply a snapshot of how voters feel at the time and many things can happen to turn the numbers around. At this stage polling is best used to see patterns and trends which a change from one week from another or a bounce stemming from a certain event generally does not alter those patterns or trends in the long run.

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Debt Deal Updates- LINKFEST

Plenty of news on the ongoing negotiations regarding the debt ceiling increase Barack Obama has demanded from Congress and the delicate discussions between the two sides of the debate.

So, a linkfest for you!!!

Congress ditches Obama on debt talks ---

First came the Biden talks. When those blew up, the Obama-Boehner talks took center stage. And when that failed, the McConnell-Reid talks looked promising. And after they faltered, the Obama-Boehner talks tried to find a new life.

Now it’s all come down to the Boehner-Reid-Pelosi-McConnell talks to solve the debt crisis. Notably absent? The president.

GOP readies new debt ceiling plan; bill set for Sunday---

House Republicans are finishing work on a new proposal to resolve the standoff over the debt ceiling. The proposal, set to be finished and crafted into the form of a bill by Sunday, will be in two parts. The first will combine a short-term increase in the debt ceiling with spending cuts. The second will lay the groundwork for a longer-term increase in the debt ceiling coupled with far-reaching deficit reduction.

"Senator Reid said on Friday that he is going to wait for us to move," says a well-informed GOP House aide. "So we'll move." Another well-informed aide confirmed the basic outline of what's happening.

Pelosi says leaders looking at two-tiered debt approach---

House Minority Leader Nancy Pelosi (D-Calif.) said Saturday night that congressional leaders are considering a two-tiered approach to raising the debt ceiling and reducing the nation’s long-term budget deficit.

Pelosi reiterated that she backs “a long-term extension” of the $14.3 trillion debt limit, putting her in line with the demands of President Obama and Senate Majority Leader Harry Reid (D-Nev.).

Congressional leaders met for just under an hour in House Speaker John Boehner’s (R-Ohio) office late Saturday, trying to forge an agreement to slash government spending and raise the debt ceiling by the Aug. 2 deadline.

Reid, however, released a statement that was less than optimistic about reaching an agreement on the timeframe of a deal.

"I hope that Speaker Boehner and Leader McConnell will reconsider their intransigence," Reid said in his statement. "Their unwillingness to compromise is pushing us to the brink of a default on the full faith and credit of the United States. We have run out of time for politics. Now is the time for cooperation.

Since it was Reid and fellow Seante Democrats that killed the Cut, Cap and Balance Act the House passed which did include a debt ceiling hike, perhaps Reid should be a little more honest about who is stopping the deals from going through.

Speaker Boehner: President Obama 'worried about his next election'---

Boehner also criticized President Obama for recommending a debt ceiling deal be timed to last beyond the next election season.

“The president’s worried about his next election, but my God, shouldn't we be worried about the country?” Boehner said. “I'm not worried about the next election. I told the president months ago: Forget about the next election!”

The administration though has indicated that the debt ceiling should be raised at least through 2012, in order to take politics out of the negotiation.

The president said in his speech Friday evening that he would be willing to work on “any plans” that lawmakers brought him over the weekend. “The only bottom line that I have is that we have to extend this debt ceiling through the next election, into 2013,” President Obama said.

No one is naive enough to believe Obama cares about anything but his next election.

Boehner prepared to move debt plan by himself---

House Speaker John Boehner says the short-term measure he plans to announce Sunday to avert a debt limit crisis may not get support from Democratic leaders, but he'll push forward even without such backing.

Responsibility for debt talks shifts to Congress and away from Obama---

House Speaker John Boehner (R-Ohio) reasserted his intention to do just that, issuing a statement that didn't even mention the president or the administration.

"[O]ver this weekend Congress will forge a responsible path forward," the Speaker said. "House and Senate leaders will be working to find a bipartisan solution to significantly reduce Washington spending and preserve the full faith and credit of the United States."

And, to emphasize responsibility now lies with Congress, Boehner and congressional leaders held their own meeting at the Capitol Saturday evening.

Happy Reading Everyone!!!!

PS- Just for giggles after obama's comment about Boehner leaving him at the altar:

Graphic lifted from Google images which took me to EmptyWheel

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Video- John Boehner Statement On Debt Talk Collapse

Video below:



The debt talks between Barack Obama and House Speaker John Boehner collapsed over the issue of taxes, Obama wants to include a tax increase in the deal to raise the debt limit, Republicans refuse to raise them.

Then both Obama and Boehner took to the airwaves. Boehner's comments are in the video above and Obama's can be found here.

Commentary accuses Obama of "trying to talk the markets into a panic"

....He claims to have put $1.5 trillion in cuts on the table, plus $600 billion in entitlement reductions, in exchange for tax increases of the same size. He says Republicans said they would accept a dollar in higher taxes (or “revenue”) for every four dollars in cuts, which isn’t exactly saying “no’” to everything. For their part, Republicans in the House passed their cut, cap and balance bill on Wednesday, and it included an increase in the debt ceiling, so even by his own account his criticisms of the GOP are not accurate.

The Republican controlled House did pass a bill that would raise the limit, but Democrats in the Senate killed it and voted to table the Cut, Cap and Balance Act after Obama threaten to veto it. Showing Obama's petulant, childish statement after Boehner walked out of the talks to be dishonest from the get-go.

H/T to AmSpec we see a report from Reuters showing that Egan-Jones, credit rating agency "has cut the United States' top credit ranking, citing concerns over the country's high debt load and the difficulty the government faces in significantly reducing spending."

I am giving the last word to PJ Tatler:

We’re seeing what happens when someone with zero executive experience gets elected to the most difficult job in the world. Barack Obama is in over his head.

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Democrats Kill Cut, Cap And Balance Act In The Senate

After passage of the Cut, Cap And Balance Act in the House of Representatives, the bill went to the Senate where Democrats proved once again they have no intention of controlling the out-of-control spending in Washington, by killing the Act along a straight party line vote in the Democratically controlled Senate chamber.

The Senate voted 51-46, along strict party-lines, on Friday to kill the House Republicans' "cut, cap and balance" legislation.

The measure would have cut spending by $111 billion in 2012, capped spending over the next decade and prohibited more borrowing until Congress had passed a balanced-budget amendment to the Constitution.

In the meantime, progress appeared to be made in the ongoing negotiations between Obama and House Speaker John Boehner but are being jeopardized by Senate Democrats who are reportedly outraged over a lack of tax increases and are bitterly complaining about being left out of the negotiations.

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Home Depot Co-Founder Explains The Damage Of Obama's Economic Policies To Job Creation

"Even brain-dead economists understand that when you raise taxes, you cost jobs."---Bernie Marcus, Co-founder of Home Depot

Today we see another name on the list of businessmen who are explaining the damage Barack Obama's policies of regulations, tax increases and out-of-control spending, is doing to America's economy, unemployment and growth.

Bernie Marcus co-founder of Home Depot, which created hundreds of thousands of jobs, tells Investors Business Daily that the single biggest impediment to job growth today is the U.S. Government.

Marcus: The U.S. government. Having built a small business into a big one, I can tell you that today the impediments that the government imposes are impossible to deal with. Home Depot would never have succeeded if we'd tried to start it today. Every day you see rules and regulations from a group of Washington bureaucrats who know nothing about running a business. And I mean every day. It's become stifling.

If you're a small businessman, the only way to deal with it is to work harder, put in more hours, and let people go. When you consider that something like 70% of the American people work for small businesses, you are talking about a big economic impact.

IBD: President Obama has promised to streamline and eliminate regulations. What's your take?

Marcus: His speeches are wonderful. His output is absolutely, incredibly bad. As he speaks about cutting out regulations, they are now producing thousands of pages of new ones. With just ObamaCare by itself, you have a 2,000 page bill that's probably going end up being 150,000 pages of regulations.

IBD: Washington has been consumed with debt talks. Is this the right focus now?

Marcus: They are all tied together. If we don't lower spending and if we don't deal with paying down the debt, we are going to have to raise taxes. Even brain-dead economists understand that when you raise taxes, you cost jobs.

Recently it was reported that Democratic Steve Wynn, CEO of casino company Wynn Resorts, stated that Barack Obama's administration "is the greatest wet blanket to business, and progress and job creation" in his lifetime.

And I'm saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime. And I can prove it and I could spend the next 3 hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right. A President that seems, that keeps using that word redistribution. Well, my customers and the companies that provide the vitality for the hospitality and restaurant industry, in the United States of America, they are frightened of this administration.And it makes you slow down and not invest your money. Everybody complains about how much money is on the side in America.

You bet and until we change the tempo and the conversation from Washington, it's not going to change. And those of us who have business opportunities and the capital to do it are going to sit in fear of the President. And a lot of people don't want to say that. They'll say, God, don't be attacking Obama. Well, this is Obama's deal and it's Obama that's responsible for this fear in America.

The guy keeps making speeches about redistribution and maybe we ought to do something to businesses that don't invest, their holding too much money. We haven't heard that kind of talk except from pure socialists. Everybody's afraid of the government and there's no need soft peddling it, it's the truth. It is the truth. And that's true of Democratic businessman and Republican businessman, and I am a Democratic businessman and I support Harry Reid. I support Democrats and Republicans. And I'm telling you that the business community in this company is frightened to death of the weird political philosophy of the President of the United States. And until he's gone, everybody's going to be sitting on their thumbs.

Before that I published a long comment from a small business owner, A.J. Motes, who explained how Obama and Democrats had blurred the lines between the "rich" and small business owners and how the Democrat's tax increase proposals would cause the lifeblood of our economy, the small businesses, to suffer.

So when politicians are talking about raising taxes on the filthy rich, they want us to think that those nasty old bankers, corporate swells, and union thugs are finally going to get what's coming to them. Unfortunately, these protected groups will be largely immune to the tax and regulatory burden. The real losers will be the small business owners, ordinary folk like you and me who have no means of protecting ourselves against the power of the government.

Don't be fooled by political rhetoric that claims taxes will be extracted from the super rich. It's the small business owner, already suffering in a poor economy, who will be hurt the most.

I wouldn't mind taxes if everyone followed the same rules and if government weren't spending our money on stuff taxpayers don't want. And I really don't like feeling that I have been turned into a slave who works to support the half of America that lives off government subsidies and handouts. Cut government spending first!

These are job creators, employers, the very backbone of our economy and they are explaining quite clearly what Barack Obama's policies have done and are continuing to do to our country.

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Gallup- 55% to 35%, Majority More Concerned About Lack Of Spending Cuts In Debt Battle

Gallup shows Americans want some type of compromise in the debt ceiling battle but lower into the Gallup poll it shows that by a 20 point margin, 55 percent to 35 percent, the majority "say they worry more that the government would raise the debt ceiling without plans for major spending cuts, than that the government would not raise the ceiling and an economic crisis would ensue."

The question: Which concerns you more: The government would not raise the debt ceiling and a major economic crisis would result, or the government would raise the debt ceiling but without plans for major cuts in future spending?

55 percent of respondents are more concerned about the lack of spending cuts than about any crisis that would result in no debt limit increase.

Bottom Line

Americans would like their representatives in Washington to compromise and get a debt agreement in place before the Aug. 2 deadline, but at the same time are concerned that any such agreement include major spending cuts.

Now, answer it out loud folks.. which party is fighting very publicly for spending cuts and which party is fighting against making those cuts?

Tom Coburn To Release $9 Trillion Deficit Reduction Proposal

Oklahoma Republican, Senator Tom Coburn will hold a press conference scheduled for 2:30pm, today, in the Senate where he will reveal details of his new proposal which would reduce the deficit by $9 trillion using methods such as adjusting the tax code and lowering it and spending cuts in a variety of places.

No doubt there will be much that both party loyalists will like and dislike and it is doubtful the proposal will garner the votes from either party needed for it to pass through the Senate or the House of Representatives.

The Ryan budget proposal, McConnell's fall back plan, and now Coburn's, does highlight one simple fact though.

Republicans, so far, are the only ones actually putting plans out there. They are offering up hard choices and going out on the limb to do so. Democrats continue to trash every plan Republicans offer up but they have refused to proposal any plans of their own.

Yet as American Thinker points out, the MSM has already started sounding their drums and fixed their coordinated messaging.

In case you haven't noticed, the drumbeat has begun in earnest to blame Republicans for the failure of talks on the debt limit and any bad reaction to it from the markets.

Today's hysteria is being generated because the GOP wants to include the unreasonable, the radical, the extreme notion that the government - eventually - should have to live within its means.

The Democrat-controlled US Senate hasn't even proposed a budget in 810 days.

It should be noted though that Barack Obama did offer one plan, a $3.7 trillion budget plan which the senate rejected to take up with a vote of 97 to 0. Not even one Democrat was willing to vote for Obama's plan.

Some people think Obama offered up another plan which would lower the deficit by $4 trillion but while Obama did mention that number to the media, he never produced any proposal, bill or details, it was only a soundbite in a speech.


Related:

Discussions to raise the debt ceiling continue as the August 2, 2011 deadline to do so looms closer and closer.

Keith Hennessey has a decent breakdown of where things stand up to this point.


Cartoon at the top by Gary Varvel, via Townhall.

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Karl Rove: Obama Has Governed As An Incompetent Liberal

"The president has not only governed as a liberal—he's governed as an incompetent liberal"... Karl Rove, Wall Street Journal

Wall Street Journal has a must-read piece explaining how Obama owns this whole debt ceiling fiasco and how dishonest his threats against senior citizens receiving social security are nothing but lies to terrify the elderly.

On Tuesday, Mr. Obama told Scott Pelley of CBS News that "there may simply not be the money in the coffers" to issue Social Security, veterans and disability checks after Aug. 3.

Not so. The $172 billion in revenues collected over the rest of the month can pay the $29 billion interest charges on the national debt, Social Security benefits ($49 billion), Medicaid and Medicare ($50 billion), active duty military pay ($2.9 billion), Department of Defense vendors ($31.7 billion), IRS refunds ($3.9 billion), and about a quarter of the $12.8 billion in unemployment checks due that month.

Obama publicly tossed out a figure of $4 trillion in deficit reduction, yet provided no details, no plan, simply used it as a sound bite in his never ending campaign for reelection.

Behind closed doors in negotiations, Barack Obama has thrown out road block after road block, making a bipartisan deal nearly impossible, hoping the American public would simply blame the Republicans for his fiasco and dishonesty.

The president has made a bipartisan agreement even more difficult by declaring certain spending off-limits to cuts. Mr. Obama's "untouchable" list includes his $1 trillion health-care reform, $128 billion in unspent stimulus funds, education and training outlays, his $53 billion high-speed rail proposal, spending on "green" jobs and student loans, and virtually any structural changes to entitlements except further squeezing payments to doctors, hospitals and health-care professionals.

Mr. Obama has offered no evidence since becoming president that he wants to restrain the upward trajectory of government spending. He does want higher taxes to pay for significantly higher federal spending. But he wants Republicans to deliver the tax increases, since Democrats couldn't pass them last year despite controlling both chambers of Congress.

The GOP is right in not bowing down to Obama and bringing the argument to the public as they have been doing, informing the public of each step as evidenced by Gallup's latest finding that out of those watching the debate closely 53 percent are against a debt ceiling increase.

The ceiling will be raised but with a majority (51%) more concerned with raising the ceiling without spending reductions than they are of the economic consequences of not raising the ceiling, the public is proving to be more interested, involved and more importantly, informed, therefore able to see through Obama and Democrats political posturing.

The equation started off simply enough for the GOP, the simple basis being if Obama wants a vote to increase the debt ceiling, to get passage through the Republican controlled House of Representatives, there must be an equal amount in spending reductions and/or cuts to the $2.4 trillion Obama wants added to our allowable debt limit.

Obama's goal to play to his base in his reelection campaign is to continue to try to force tax increases into the debt limit debate, which some polls show to be not as popular with those not self identified as Democrats.

Just 34% think a tax hike should be included in any legislation to raise the debt ceiling. A new Rasmussen Reports national telephone survey finds that 55% disagree and say it should not. (To see survey question wording, click here.)

There is a huge partisan divide on the question. Fifty-eight percent (58%) of Democrats want a tax hike in the deal while 82% of Republicans do not. Among those not affiliated with either major political party, 35% favor a tax hike and 51% are opposed.

James Pethokoukis provides an email from a GOP aide which explains how Obama's finally becoming involved in the debt ceiling debate after the Biden's negotiating group fell apart, has complicated matters and made them worse, not better.

Over the last several days the White House has been walking back the savings on the Biden number. Thursday it was $2 trillion, Monday it was $1.7-1.8 trillion, Tuesday it was $1.6-1.7-1.8 trillion. This morning our staff met with White House folks and the wrap up from that meeting said that the WH is now at $1.5 trillion.

Given those figures, [Cantor] pointed out that wherever we are- it’s a long way from the $2.4 trillion needed to meet House GOP goals of dollar for dollar so he suggested a possible short-term goal in order to avoid default. He then said to the President that since we can only reach so much in savings and you (President) keep moving the goalposts, I will move off my position of only doing one vote in order to avoid default.

Poll after poll after poll show that Obama's approval rating on the economy reaches new lows consistently as his record is established and Americans have something to which to judge his job performance via the last 2 1/2 years.

Economy Performance Ratings

Obama’s performance ratings drop significantly when the focus turns to his management of the economy, jobs and deficits. By a margin of 61 percent to 32 percent, Americans disapprove of the job Obama is doing to tackle the budget deficit. Fifty-seven percent of respondents disapproved of his efforts to create jobs and overall 57 percent disapproved of his handling of the economy.

Headlines such as "Obama warns Cantor: 'Don't call my bluff' in debt-ceiling talks" and "President Obama abruptly walks out of talks", certainly will not help the public's perception of his handling of the economy.

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Poll: Majority Sides With Republicans On Debt Ceiling Debate

A plurality of Americans do not want their elected Representatives to vote for a debt ceiling increase by 42 to 22 percent and a majority of Americans are more concerned with raising the debt limit without spending cuts attached than they are with a major economic crisis if the ceiling is not raised by a 51 to 32 percent margin, according to Gallup's latest polling.

The bottom line as explained by Gallup:

Despite intense lobbying of Congress by President Obama, Treasury Secretary Timothy Geithner, and others in the administration about the economic urgency for raising the nation's debt limit, fewer than one in four Americans favor the general idea of raising it. Also, Americans are significantly more concerned about the budgetary risk of giving the government a new license to spend than they are about the potential economic consequences that would result from not raising the debt limit. Both of these findings put Americans more on congressional Republicans' side of the debate than Obama's -- at least in terms of political leverage as the two sides negotiate a deal. Nevertheless, Americans place Obama and the Republicans in Congress at parity in their preferences for whom they trust more to handle the federal budget deficit and debt ceiling, similar to the close division in U.S. partisanship, more generally.

The very public battle has had each side of the debate bringing their arguments straight to voters, using media and social media sites to present their case and respondents to the polling seem to be more in agreement with the Republicans than with the administration and liberal arguments.

The impasse has come as Republicans insist on spending cuts or reductions to equal, at least, the amount the Obama administration is asking for as an increase to the debt ceiling and Obama and Democrats insisting on raising taxes which the GOP has consistently made clear is a non-starter and will not pass the House of Representatives.

The new messaging campaign from Obama, as of yesterday, was to threaten social security by claiming that if the impasse is not overcome then elderly will not receive their social security checks come August 3, 2011.

For Obama, when all else fails, terrorize the elderly.

Nice.

[Update] Another Gallup poll finds that the majority of Americans (53%) that are watching the debt debate very closely want their member of congress to vote against it.

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Video- Obama 2009: 'You don’t raise taxes in a recession'

While we see news that Barack Obama wants to add a $1 trillion tax increase into negotiations with Republicans over a debt ceiling increase where Republicans demand spending cuts/reductions equal to, at least, the amount Obama wants to increase the debt ceiling, we flash back to August 2009, where Obama tells NBC's Chuck Todd "You don’t raise taxes in a recession."

Obama's answer to Todd was mentioned by The Weekly Standard recently, and it didn't take much hunting to find the video of that interview so you can see Obama say it himself to understand how Obama speaks from both sides of his mouth.

Video below- The question about taxes is posed at the 5:20 minute mark (just use the video scroll bar to go directly to that question and answer):

Visit msnbc.com for Breaking News, World News, and News about the Economy

Text:

Question from Scott Ferguson via Chuck Todd to Obama: "Explain how raising taxes on anyone during a deep recession is going to help with the economy."

Obama's answer: "First of all, he’s right. Normally, you don’t raise taxes in a recession, which is why we haven’t and why we’ve instead cut taxes. So I guess what I’d say to Scott is – his economics are right. You don’t raise taxes in a recession. We haven’t raised taxes in a recession.”

Todd reminded Obama that he had promised to raise taxes on “some of the wealthiest” Americans.

Obama responded by reiterating his opposition to tax hikes during a recession and making an argument about timing. “We have not proposed a tax hike for the wealthy that would take effect in the middle of a recession. Even the proposals that have come out of Congress – which by the way were different from the proposals I put forward – still wouldn’t kick in until after the recession was over. So he’s absolutely right, the last thing you want to do is raise taxes in the middle of a recession because that would just suck up – take more demand out of the economy and put business further in a hole.”

Not only did Obama make the very point Republicans are making now that he is arguing against, but Obama also assures Todd that the taxes increases that he was proposing "wouldn't kick in until after the recession is over".

Hot Air reminds people that not only is the country still suffering badly with the economy but what has been done to the economy by Obama hasn't made the situation any better.

A reminder of House Speaker John Boehner's statement this weekend:

"Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes. I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase."

According to another statement sent to USA Today, after meetings conducted after the first statement was issued, Boehner still believes the original smaller deal of cuts to equal the amount of the debt ceiling increase without raising taxes, is still the most viable option:

"The Speaker told the group that he believes a package based on the work of the Biden group is the most viable option at this time for moving forward.

The Speaker restated the fundamental principles that must be met for any increase in the debt limit: spending cuts and reforms that are greater than the amount of the increase, restraints on future spending, and no tax hikes.

The President agreed with the Speaker that their previous talks did not produce any agreement. The group agreed to continue talks in the coming week."

Stick to the smaller deal GOP and let the voters decide in the 2012 elections how they want to proceed from there.

If they remove Barack Obama from the White House, the voters will be speaking loud and clear that they do not want taxes raised but instead want government to get control of themselves and stop spending more money than they have.

If voters do not vote to replace Obama but reelect him instead, they will get exactly what they deserve.

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House Speaker John Boehner Statement On Smaller Debt Deal

House Speaker John Boehner (R-OH) released the following statement today regarding ongoing debt limit discussions with the White House:

"Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes. I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase."

So, because Democrats insisted on raising taxes, something the GOP stated up front was a non-starter and would never pass the House of Representatives, the deal to reduce the federal deficit by $4 trillion over the next decade now becomes a much smaller deal where negotiators work toward an agreement closer to $2 trillion.

James Pethokoukis provides a quote from an email he received from GOP congressional source:

Their fierce insistence on higher taxes is beyond bizarre. After months of demanding ‘clean’ increase to avert economic calamity (default), WH threatens economic calamity (default) unless they get economic calamity (trillions in tax hikes). No wonder these guys are governing over an economic calamity (9.2% & growth malaise), w/ an economic calamity on the horizon (debt explosion as mapped out in president’s budget). The bipartisan consensus on tax reform (broader base & lower rates) was championed by President’s fiscal commission, and yet now is being rebuked by the President. Lowering top rates that would help make America more competitive was too large a leap for a true class warrior.

The good news here is any debt limit increase will be accompanied by at least the same amount in spending cuts and/or reductions.

The better news is that by the time this issue comes around again, there is a distinct possibility that Americans will have replaced Obama with someone that won't hold our economy hostage over tax increases.

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Unemployment Rises To 9.2. - Video Of Rubio: 'We Don't Need New Taxes, We Need New Taxpayers'

The Employment Situation Summary released by the United States Department of Labor Bureau of Labor Statistics today shows that job growth has slowed considerably as the unemployment rate has risen by another percentage point bringing it to 9.2 percent unemployment.

As I note in these reports, the summary also shows that 2.7 million people not working are not included into that 9.2 percent official figure.

In June, 2.7 million persons were marginally attached to the labor force, about the same as a year earlier. (These data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.

Areas still at or above the official national average for unemployment are:

Alabama- 9.6%
California- 11.7%
D.C.- 9.8%
Florida- 10.6%
Georgia- 9.8%
Idaho- 9.4%
Kentucky- 9.8%
Michigan- 10.3%
Mississippi- 10.3%
Nevada- 12.1%
New Jersey- 9.4%
North Carolina- 9.7%
Oregon- 9.3%
Rhode Island- 10.9%
South Carolina- 10.0%
Tennessee- 9.7%

Data obtained from Bureau of Labor Statistics on the Local Area Unemployment Statistics page. (Right side)

NYT reports:

Economists said that the report was disappointing and reflected some of the headwinds facing the economy, such as higher energy prices, slack consumer confidence, government budget problems and supply chain disruptions from the earthquake in Japan. The debt ceiling debate may have also added to the uncertainties over tax rates and the possible impact on benefits.

The stock market fell sharply on the bleak jobs report.

“All that uncertainty is hanging out there,” said John Canally, economist and investment strategist for LPL Financial. “Unless hiring picks up, there is a reason to be concerned about whether we can grow at 2.5 percent for the rest of this year.”

Washington Democrats, including Obama continue to insist that "raising taxes" is paramount in the ongoing public battle over raising the debt limit while Republicans argue government needs to get it's spending habits under control and feel that regulations are stifling business growth as is the continued threat of raising their taxes.

Job growth, expansions, hiring and lowering the unemployment numbers are all dependent on businesses feeling safe and stable, something Washington is not offering them, therefore they are not growing.

This brings me a wonderful speech on the Senate floor made by Senator Marco Rubio as he discusses the whole debt issue, spending cuts, the reality of the taxes the Democrats want to add and after showing that all the Democrats' proposed tax increases, totaled up, would only cover "nine days and 23 hours of deficit spending."

The he moves along to jobs, which is right in line with what we are seeing today in the news about the unemployment numbers rising. (approximately 4:50 into the video at the bottom of this post, is where Rubio starts discussing jobs by way of creating the true revenue)

“So, here's the bottom line: These tax increases they're talking about. These so-called revenue enhancers, they don't solve the problem. So what do we do then? Because clearly we have to do two things.

"One, we have to hold the line on spending, if you keep digging yourself in the hole, the hole is going to bury you. But the other thing is, how do you start generating revenue for government so we can start paying down this debt? And that’s what the debate should be about.

“We already know these taxes they're talking about don't work. So, here's what works. Here is what I would suggest works in a balanced approach, using the president's terminology. Let's stop talking about new taxes and start talking about creating new taxpayers, which basically means jobs. Now, here in Washington, this debt is the number one issue on everyone's mind, and rightfully so. It is a major issue. But everywhere else in the real world, the number one issue on people's minds are jobs. And I'll tell you every other problem facing America -- a mortgage crisis, home foreclosure crisis, this debt problem -- all of these issues get easier to deal with if people are gainfully employed across America.

"And the impact that unemployment's having across this country is devastating. We hear about unemployment in facts and figures. They give us numbers, Sen. Ayotte, 'Oh, X percent people are unemployed.' Well, there's stories behind every one of those people. You know who a lot of these people are that are unemployed in America? They are people that have done everything they've been asked to do, and they've done it right. Maybe they served their country overseas, maybe they went to college and got a degree and now came back home. Maybe they worked for 10 or 20 years and did a really good job at work, and now, you know what, they can't find a job. Or maybe they were lucky enough to find a job after losing their original job, but it pays them half as much, and they work twice as long.

"That is the real face of unemployment in America, of people that are hurting. And our job here is to do everything we can to make it easier for them to find a job, not harder. And I think that's what we have to do when it comes to a balanced approach and when we talk about revenue.

“We don't need new taxes. We need new taxpayers, people that are gainfully employed, making money and paying into the tax system. And then we need a government that has the discipline to take that additional revenue and use it to pay down the debt and never grow it again. And that's what we should be focused on, and that's what we're not focused on.

“So you look at all these taxes that are being proposed, and here's what I say. I say we should analyze every single one of them through the lens of job creation, issue number one in America. I want to know which one of these taxes that they're proposing will create jobs. I want to know how many jobs are going to be created by the plane tax? How many jobs are going to be created by the oil company tax that I heard so much about? How many jobs are created by going after the millionaires and billionaires the president talks about? I want to know: How many jobs do they create?

“Because I'll tell you, and I'm going to turn it over to Sen. Ayotte in a second. I'm interested in her perspective on this as a job creator, as the spouse of a job creator who runs a small business, as someone like me who just came off the campaign trail. Let me tell you something. I traveled the state of Florida for two years campaigning. I have never met a job creator who told me that they were waiting for the next tax increase before they started growing their business. I've never met a single job creator who's ever said to me I can't wait until government raises taxes again so I can go out and create a job.

"And I'm curious to know if they say that in New Hampshire because they don't say that in Florida. And so my view on all this is I want to know how many jobs these tax increases the president proposes will create because if they're not creating jobs and they're not creating new taxpayers, they're not solving the problem."

Transcript of Rubios statement provided by RCP. Emphasis mine on certain portions of Rubio's words.

Video of Rubio's speech below:



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Debt Limit Talks: Bush Era Rates Off Table And House Democrats Feel Ignored

After the bipartisan talks imploded last week when Democrats insisted that part of the deal include $400 billion in tax increases. This forced Barack Obama to finally come to the table in negotiations over raising the debt ceiling, which stands at $14.3 trillion now, to allow the U.S. to borrow more money.

There have been a flurry of meetings that now include Obama, Senate majority leader Harry Reid (D-Nev.) and Senate minority leader Mitch McConnell (R-Ky.), a separate meeting with House Speaker John Boehner and another meeting with House Minority Leader Nancy Pelosi (Calif.), Minority Whip Steny Hoyer (Md.) and Rep. James Clyburn (S.C.), assistant to the leader.

The Hill reports that the administration has stopped insisting on ending the Bush-era tax cuts.

I am starting to get a vague sense of deja vu though as I see headlines like "House Democrats feel jilted by the president in budget, debt talks."

Just as House Democrats did in December after Republicans took a large net gain of House seats,the biggest turnover of seats in decades, to take control of the House of Representatives, House Democrats are now upset, feeling that they are being taken for granted and ignored and complaining publicly.

“How is it that the House Democrats played such an important role [in the majority], and all of a sudden [the White House says], ‘Forget it, we’ll work with the Senate and the Republican leadership?’ ” asked Rep. Henry Cuellar (D-Texas), vice chairman of the Democrats’ Steering and Policy Committee.

House Democrats’ frustration with Obama is boiling in the intense heat of negotiations to reach a budget deal and raise the nation’s $14.3 trillion debt ceiling.

Capitol Hill Democrats have been steaming for months, since being sidelined during talks to extend the George W. Bush-era tax rates and fund the government this year. Many say the White House takes their support for granted but ignores them when it comes to making policy.

“Before this year we were playing a strong role,” said Cuellar, but “now a lot of us feel like we’re almost being ignored.”

Before this year they played a strong role because they had an overwhelming majority, and they had a Democratically controlled Senate and White House and were able to shove anything that they wanted through because the GOP could not stop them from railroading laws and bills.

November 2010 midterms ended that one party reign.

They are frustrated, speaking out to reporters, angry and aren't at the point where they can admit the reason they are being "ignored" treated as if they are "irrelevant" is because House Democrats are irrelevant at the moment.

Of course Obama is taking them for granted, who else are they going to support in 2012? The Republican candidate against Obama?

I don't think so.

Obama knows the answer to that question and so do the House Democrats that are throwing their temper tantrums.

The Obama administration needs the debt ceiling voted on, passed and raised by August 2, 2011.

Republicans have made it clear that for any debt ceiling raise to pass the House of Representatives, an equal amount of spending cuts be part of the deal. Want $2 trillion (example) then cut that same $2 trillion. Republicans want a balanced budget amendment to show they are serious about stopping the practice of spending more money than we have.

Republicans seem to have learned their lesson when they were thrown out of leadership positions the last time by their base for spending like drunken sailors with taxpayer money. They understand they campaigned in 2010 on the premise of cutting spending and lowering our deficit and if they do not fight to keep those promises, they can be replaced again in the next election.







Wasteful Government Spending

Gallup found that 73 percent of national adults understand what liberal Democrats and Barack Obama (yes, redundant) do not seem to be able to... that wasteful government spending is more to blame for the rising federal budget deficit than not raising enough money in taxes.


Corporate Taxes vs Budget Cuts

In May, a New York Times/CBS News poll (neither organization can be accused of a "conservative slant") shows that most Americans prefer budget cuts over raising corporate taxes.

In general, however, few Americans back increasing taxes on American businesses: only 37 percent said corporate taxes should be increased to help reduce the federal budget deficit. The rest agree with an alternative argument that increased taxes would discourage American companies from creating jobs and hurt them in the global marketplace. Thirty-two percent would rather see corporate taxes remain as they are now and 26 percent said taxes on corporate profits should be decreased.

Government Shutdown vs Spending Cuts

In April Rasmussen found that 57 percent of polled voters suggest that a government shutdown would be preferred to not doing the deep spending cuts necessary to get the federal budget on its way toward balance. Only 31 percent believe that avoiding a shutdown is more important.


The bottom line here is that this battle, like the previous budget battles since November is being aired publicly with the same public referred to in the polls above, watching as Republicans fight for spending cuts, a balanced budget amendment and Democrats fighting to raise taxes.

I can almost see all those public statements used in GOP campaign videos with Democrats and Obama stating over and over again "raise taxes" with the GOP candidate saying "cut spending."

Democrats need to stop playing to their 13 percent fiscally liberal base and start playing to Americans as a whole or even to the 38 percent that view themselves as moderate on fiscal issues, or 2012 is going make their massive losses in 2010 look like a walk in the park.

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What Part Of 'Tax Hikes Are Off The Table' Do Democrats Not Understand?

The last two Republicans involved in the deficit negotiations before a debt limit deal can be reached, have just pulled out of the talks, leaving no GOP involved.

House Majority Leader Eric Cantor walked first and he was followed by Senate Minority Whip Jon Kyl.

Still, Mr. Cantor remained optimistic about the prospects for a deal. He said the Biden group had already made significant progress and had tentatively identified more than $2 trillion in spending cuts over the next 10 years. But he said there could be no agreement on an overall package without breaking the impasse between Republicans' refusal to accept any tax increase, and Democrats insistence that some tax hikes be part of the deal.

While it is widely agreed that there has been major progress from the talks, Democrats at the negotiating table are unable to comprehend the very clear statements made by the Speaker of House,John Boehner, when he said "We have been clear. Tax hikes are off the table. A tax hike cannot pass the U.S. House of Representatives... these conversations could continue if they take the tax hikes out of the conversation."

There can be no deal if it cannot pass the House of Representatives and the GOP controlled House has already been as clear as can be that there will be no tax hikes associated with a deal on raising the debt limit.

Senate Minority Leader Mitch McConnell is asking a question I have been seeing more and more lately.

Where is Barack Obama?

"Where in the world has President Obama been for the past month?" McConnell said, "What does he propose? What is he willing to do to reduce the debt and avoid the crisis that is building on his watch."

On the same day that House Majority Leader Eric Cantor dropped out of the Biden-led debt talks and as the group was set to meet for the eleventh time this afternoon, McConnell said that most Americans want President Obama to start acting like he’s in charge.

"It's not enough for the President to step in front of a microphone every once in a while and say a few words that someone hands him to say about jobs and the economy. Americans want to see that he's actually doing something about it."

McConnell said that thus far President Obama has “stood in the background” and not acted as if this is problem.

“He’s the President. He needs to lead. He needs to show that he recognizes the problem. And do something about it,” McConnell said noting that the Republican Party is not in the majority, “This is his problem to solve.”

Boehner thinks it is time for him and Obama to have a little discussion to overcome the impasse before the drop dead date of August 2, 2011 when the U.S. will default on its debt without a vote to raise the debt ceiling.

Mr. Boehner, an Ohio Republican, said he understood Mr. Cantor's frustrations, and that he stood willing to engage in talks with the president. "I would expect to hear from him," Mr. Boehner said.

Boehner will have to wait because Obama is hiding behind closed doors with Democrats rather than risking having his own fingerprint on the deal.


[Update] More from The Hill on a joint statement from Senate GOP leader Mitch McConnell (R-Ky.) and Senate Minority Whip Jon Kyl (Ariz.):

“The White House and Democrats are insisting on job-killing tax hikes and new spending. That proposal won’t address our fiscal crisis, our jobs crisis, or protect and reform entitlements. And a bill with new spending and higher taxes would fail with bipartisan opposition — as it should," the two said in the statement. "President Obama needs to decide between his goal of higher taxes, or a bipartisan plan to address our deficit. He can’t have both. But we need to hear from him.”

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CBO's Long Term Debt Projections Spell Major Economic Disaster

H/T YID With LID for pointing out (and providing the embedded report below his post) the latest Congressional Budget Office's long term debt report which projects unmanageable economic disaster on the horizon for the U.S. unless some painful changes are made now.

CBO’s projections in most of the report understate the severity of the long-term budget problem because they do not incorporate the negative effects that accumulating additional federal debt would have on the economy, nor do they include the impact of higher tax rates on people’s incentives to work and save. In particular, large budget deficits and growing debt would reduce national saving, leading to higher interest rates, more borrowing from abroad, and less domestic investment—which in turn would lower income growth in the United States. (Chapter 2 of the report presents estimates of the economic effects of growing debt and the impact of those economic changes on the trajectory of debt under both scenarios.)

There is much more, go read it there and the report itself is embedded for those that wish to look through the whole thing.


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International Monetary Fund Downgrades U.S. Forecast

Via Washington Examiner we see the International Monetary Fund has downgraded their 2011 and 2012 growth forecasts for the U.S.

The IMF now forecasts U.S. gross domestic product of 2.5 percent in 2011 and 2.7 percent in 2012, yet Obama's budget proposal anticipated growth of 2.7 percent and 3.6 percent, respectively. While that may not seem like a big deal, small fluctuations in GDP can make a huge difference on deficits because economic performance has an effect on both sides of the budget ledger. Greater growth means more revenue because more people are employed and earning higher incomes, but it also means less spending on so-called "automatic stabilizers" such as unemployment benefits.

Obama's growth compared to Reagan's:

Reagan recovery saw GDP surge by 4.5 percent and 7.2 percent in 1983 and 1984,and the Obama economy isn't going to achieve that in anybody's wildest dreams.

Here are a few differences between Obama's policies and Reagan's:

* Reagan cut income tax rates. Obama spent his first two years promising to increase tax rates on “the rich,” mostly small business owners and investors. In December he signed legislation that schedules his tax increase to take effect two months after the 2012 Presidential election

* Reagan cut “discretionary” spending. Obama dramatically increased it.

* Reagan reduced regulation and government intervention in the private sector.

* Obama has implemented waves of new regulation and under his leadership Congress passed legislation that will require new regulations of health insurance and virtually every detail of banking and finance – even ATM cards.

BTW, it has been a year since Obama's much lauded "Recovery Summer" as Speaker of the House John Boehner explains:

The “stimulus” was all about big spending and big government — not jobs. That was obvious on the day the “Recovery Summer” began in my home state of Ohio. Local construction workers on a nearby site in Columbus were forced to take the day off, without pay, so the White House entourage could roll through and tout all the taxpayer dollars they were spending. But all that spending got us was more debt and fewer jobs.

Approximately 1.5 million jobs have been lost since the “stimulus” was signed in 2009 — roughly 300,000 of them as administration officials hopped from town to town promoting the “summer of recovery.” The national unemployment rate was 9.1 percent in May — far above the 8 percent promised by the White House — and has averaged 9.5 percent throughout the Obama presidency.

The president can call this a “bump in the road,” or blame ATMs, or joke that those “shovel ready” jobs that were promised “weren’t as shovel ready as we expected.” But there’s nothing funny about policies that keep workers on the unemployment line and drive us deeper into debt. Those aren’t the kinds of results — and this isn’t the recovery — the American people deserve.

There has been no recovery. Obama and the Democrats who controlled the House and Senate at the time, poured almost a trillion dollars into the economy and slowed down the bad news, but using an analogy I have used before, that was nothing more than putting a band-aid on a gushing wound and claiming the wound was healing just because less blood visibly flowed.

Slamming money into the economy will not fix the underlying problem. If the root cause is not addressed then it does no more than throw good money after bad to watch it get sucked up before everything starts collapsing again.

In the meantime, all that money thrown at the problem adds to our debt/deficit.

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Paul Ryan: 'Getting Back To The Four Foundations Of Economic Growth'

"America was knocked down by a recession. We are threatened by a rising tide of debt. But we are not knocked out. We are America. And it is time to prove the doubters wrong once more – to show them that this exceptional nation is once again up to the challenge."-- Paul Ryan

I just listened to the 24 minute speech by Paul Ryan at the Economic Club of Chicago, given on May 16, 2011, discussing "Shared Scarcity versus Renewed Prosperity." (Video below)



The whole speech is well worth the time it takes to listen to it. He pulls no punches, not against previous Republican leadership nor present Democratic leadership and the fiscal irresponsibility shown by both political parties over decades.

"This crisis has been decades in the making. Republican administrations, including the last one, have failed to control spending. Democratic administrations, including the present one, have not been honest about the cost of the tax burden required to fund their expansive vision of government. And Congresses controlled by both parties have failed to confront our growing entitlement crisis. There is plenty of blame to go around. "-- Paul Ryan

You can see the entire transcript here, but I am going to highlight the four foundations of economic growth he envisions:

First, we have to stop spending money we don’t have, and ultimately that means getting health care costs under control.

Second, we have to restore common sense to the regulatory environment, so that regulations are fair, transparent, and do not inflict undue uncertainty on America’s employers.

Third, we have to keep taxes low and end the year-by-year approach to tax rates, so that job creators have incentives to invest in America; and

Fourth, we have to refocus the Federal Reserve on price stability, instead of using monetary stimulus to bail out Washington’s failures, because businesses and families need sound money.

He goes on to explain each of the four, in order and does so impressively.

Recently Ryan went from townhall meeting to townhall meeting, explaining "The Path to Prosperity" which is his baby, his plan to set America on a path to prosperity once again instead of the downward debt ridden country we are becoming under our current path.

In each of those townhalls, Ryan patiently and clearly answered every question thrown at him in a manner that all of us non-economists could actually understand.

The more I watched him, the better the understanding became about his plan, his ideas, and his desire not to change America but to get back to the America we once were.

I am left wondering why the GOP cannot find a candidate like Ryan to go up against Obama in 2012.

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YouCut Phase ll And Spending Cuts Dollar For Dollar Equal To Raise In Debt Limit

YouCut Phase 2 was unveiled Wednesday and works much like the original YouCut with a few additional advantages.

The Daily Caller explains:

“This updated version builds upon the success of the original YouCut program by allowing Americans to vote on a spending cut, and track the legislation in real-time, from introduction by a member of our freshman class, through the committee process, to a floor vote and ideally to enactment,” Cantor said.

The initial numbers for YouCut were quite impressive with 500,000 votes each round and Republicans are hoping to double that amount of participation from the general public.

The three options for this week for the public to vote on what spending to cut are Terminate the Ambassador's Fund for Cultural Preservation which would save $60 million, Terminate U.S. Contributions to the Asian Development Fund which would save $356 million or Terminate U.S. Contributions to the United Nations Population Fund which would save $400 million.

Below your vote option is a place where you can suggest your own ideas for spending cuts.

When the first version of YouCut was unveiled, Democrats controlled the House so Republicans could suggest a vote on the winning spending cut but was often refused the opportunity to bring it to the House floor by Nancy Pelosi who was Speaker of the House at that time.

Now that Republicans control the House, these votes will come to the floor and the newly improved site will allow you to track the progress of the cut, see when it comes to the floor, if it passed and the public can continue to participate by following up by encouraging your Senate reps to bring it to the floor. (Senate is still controlled by Democrats, so those calls will be important)

Democrats are fast to criticize the YouCut idea because the cuts are a drop in the bucket in comparison to the overall federal deficit.

Freshman Austin Scott of Georgia responds "Well, that’s fine. Lets get started. We didn’t get into this situation overnight. And we’re not gonna get out of it overnight. Nobody’s gonna wave a magic wand one night and we’re gonna wake up tomorrow and everything’s gonna be OK fiscally."

I have pointed out before and it is worth repeating. You put a bucket under a leak, each drop may be small in comparison to the size of the bucket itself, but as they all drip in, eventually the bucket fills up.

Nobody is going to pretend that each cut, individually, is going to fix our deficit problems and by the same token, Scott is correct, we didn't get this far into debt overnight so any and all cut must be accompanied by a concrete long term fiscal plan.

Human beings are hard wired into wanting to see results instantly but any savings, spending cuts and long term budget deficit plan is going to have to account for long term spending cuts where the results are not only seen instantly but where a change in spending set the standard in the long run.

So a plan to cut trillions isn't and shouldn't be trillions right this second but should be spread out so that over the course of time so that Washington is reprogrammed to spend less.

We could cut trillions right this second but without a spending plan for the future, we would simply be making a one time cut and the deficit would be rising again at an unsustainable level by the time the next budget comes up for a vote.

Debt Ceiling

Speaker of the House, John Boehner, has made it clear that if Obama wants a debt limit increase it will be dollar for dollar, hand in hand with spending cuts to equal the amount of the increase.

Boehner took the ambitious stand in negotiations to raise America’s debt ceiling while speaking to the Economic Club of New York, saying, “Without significant spending cuts and reforms to reduce our debt, there will be no debt limit increase. And the cuts should be greater than the accompanying increase in debt authority the president is given.”

While the Treasury Department has yet to specify exactly the size of the increase Congress will need to approve for the $14.3 trillion debt limit, estimates are currently settling in around $2 trillion. That means, according to Speaker Boehner, that the White House and congressional Democrats would have to agree to spending cuts equal to at least $2 trillion as well.

The only thing “off the table” is tax increases, said Boehner. Everything else – including entitlements — will be subject to spending cuts.

Washington has spent decades learning the bad habit of spending more money than America has, then borrowing even more so they can spend even more. Anyone living on a budget knows that is not only unsustainable but if Washington was a household, that family would be homeless, unable to put food on the table, their credit cards taken away and their credit rating would be shot for a decade.

Politicians need to be retrained.

Republicans were thrown out of power by doing the very same thing and apparently they learned their lesson because not only did they promise while campaigning for the 2010 midterms to be fiscally responsible and force spending cuts, but after winning the largest net seats in the House of Representatives in over 70 years and being handed control of it, they are still fighting tooth and nail against Democrats to keep those campaign promises.

Now it is time to retrain the Democrats and if they continue to fight again fiscal responsibility, well, the 2012 elections can take care of that.

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$100,000.00 Power Line Prize For Most Effective Dramatization Of Debt Crisis

Quick pointer piece linking to Power Line who announces a competition with a $100,000.00 grand prize:

Teaser:

That leaves the critical one-third, many of them young, who for whatever reason do not yet understand the threat that federal spending and debt pose to them and to the country. Data have been collected; charts and graphs have been prepared; op-eds have been written. But many millions of Americans have not yet been reached or persuaded by these sober economic analyses. We need a marketing campaign: a sustained effort to use the tools of modern communication to reach and educate every American, and to mobilize popular opinion to demand reform from the politicians in Washington.

Toward that end, we are proud to announce the Power Line Prize. Power Line, in conjunction with the Freedom Club, is offering a grand prize of $100,000.00 to whoever can most effectively and creatively dramatize the seriousness of the federal debt crisis. Any medium of communication is eligible: video, song, screenplay, television commercial, painting, Power Point, essay, performance art, or anything else. The runner-up will receive a $15,000.00 prize, and two third-place finishers will receive $5,000.00 each. Entries must be submitted by midnight on July 15, 2011. Judges' decisions are final. All submissions become the property of Power Line and the Freedom Club. Entries must be original and unique to the Power Line Prize competition; i.e., they must not have been published or made public in any form prior to the time when contest winners are announced.

The contest web site is here

Head over there.

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