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Four in the future -- -- Washington DC treated American citizens and the rest of the world watching to a debt ceiling circus this year.
The big -- party events unfold I'm fear mongering mole would.
As a tragic events house GOP freshman that a financial Armageddon would surely follow.
If congress didn't raise our country's legal borrowing limit by an incredible 2.4 trillion.
The ceiling was reached breached and ultimately raise Standard and Poor's downgraded the federal government's -- credit rating for the first time in American history.
And the corrosive spend.
It is a corrosive cycle that's not likely and no matter which party runs either house of congress and my right I think that's.
Absolutely right I mean you look at the balance the budget proposal that cut cap and balance -- the Republicans put forward.
It exempts entitlements it exempts with defense spending Medicare Social Security the military these are the biggest budget items.
How do you balance the budget doesn't really count or at least you're putting them -- We spend about a trillion a year in entitlements we spent about 800 billion a year you could say it's a trillion because a lot of defense money is is park and other budgets like.
The State Department and the intelligence agencies.
So two thirds of what we spend.
It's something that they don't want to touch does anybody except perhaps Ron Paul and Rand Paul seriously take and understand.
Nobody in the government the congress the issue of debt.
I don't think seven and congress -- put themselves into an impossible situation.
Because most of those in congress.
Believe it it is the moral obligation for the government to -- to spend more than it is the only way that many of our.
Social and fiscal problems OK I wanna all -- right there because you teach philosophy as well as economics.
Why do people think.
That things are going to get better when the government appears to be spending money on them.
Does everybody even H Thomas Jefferson among us want the their piece of the government -- well this is how it seems to worked as a judge out and -- need to be some bad news you go into your average college campus and you -- students.
What is the purpose of the government what they will not say is to protect our natural rights.
They will not say what John Locke said that.
And the chief purpose of the governments to protect property.
What they will say is to take care of the problems and once you have the idea that the government's jobs to take care whatever the problems are well this is what you're going to get.
So we have gone from Jefferson's.
That government has -- which governs least.
To Lincoln's that job of the government -- -- do for the people what they can't do for themselves and their own individual capacities that is a radical.
Departure I suppose you could put some ruffles and flourishes on there.
From Woodrow Wilson and Theodore Roosevelt and FDR and Barack Obama but it certainly going in the direction of big government and not small government.
Even in the years Republicans were in power -- -- -- -- Republicans were were were terrible big spenders I mean the bush -- was an era of big government when Republicans controlled congress controlled the White House.
They spent and they spent they passed a brand new entitlement right.
Right Medicare part.
Do you think -- -- that so many of the small government freshman Republican.
Republicans in the house without whom John Boehner would be minority leader Boehner instead of speaker Boehner.
-- -- And voted to let the president borrow 2.4 trillion -- you imagine what would have happened if they hadn't done that.
And the government for the first time in modern times was forced to live within its means why do you think the cave.
We had a brief moment -- -- hope that as quickly dashed.
I think there's two main reasons.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That DC have to justify its own existence DC have to be able to tell the rest of the world hears all the things we're gonna do get the uniqueness of the and -- -- doing something yes it's actually accomplishing something took continue to probe because everybody wants to increase their scope of responsibility.
Did the federal government deserve the credit do you remember this brouhaha that credit downgrade.
And -- -- it got from -- the practical -- or rest of the the the -- officers of Standard and -- did government deserve that downgrade is there anybody who thinks that the United States government really fiscally solvent I mean there's is that we are sovereign nation we can print our own money so there's a sense in which we can print forever and there's.
But let -- -- we are so far overseas -- I think the real reason people got so upset about the downgrade was because.
The whole world -- itself -- United States -- the United States which is created more wealth than any country in the history of humankind.
If the United States is over -- -- Then what I think there's just such a tremendous fear of the and certainly of what.
Couldn't do lie in the future if that's the case we just don't -- -- face I think people got upset over the downgrade because it told them a painful truth hang out.
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