Tag Archives: economy

Warning: U Turn or Crash

U-Turn to right permitted

U-Turn to right permitted

For a very short time in the history of the world, America was an oasis of liberty in a global desert of humanistic oppression. That era is rapidly coming to an end. Furthermore, it appears more evident each day that we may have passed the point of no return. No matter what decisions our leaders make in the next few months, we cannot defy the laws of economics and math. Eventually, we will end up in financial bankruptcy and social chaos. At that point, based on the lessons of history and the law of cause and effect, order can only be restored to the chaos by draconian government intervention.

When that happens, we will have lost all hope of ever returning to a constitutional republic. America will lose its place as the “leader of the Free World”. We will no longer be the “policeman of the world” helping to maintain world order. The disorder and confusion we now see in the Middle East and Europe will continue to spread until chaos extends throughout the world, requiring the same solution, draconian government intervention. Conditions will then be ripe for establishing the long sought after goal of humanists, socialists, communists and other left wing groups, for a one-world government; the “New World Order” spoken of by George H.W. Bush many years ago.

Many of my readers are probably thinking to themselves, “The old man has finally lost it”. In 2008 when I first began to write about the dangers of an Obama Presidency, the most common response from my friends was, “that could never happen here, the American people would never stand for it.” I was also chided by my friends when I labeled Barack Obama as a socialist when he first appeared on the political scene. For some reason, I do not hear those criticisms so much today. Anyway, before you click off this page, let me assure you these thoughts are not original with me. They are gleaned from political philosophers, news accounts of current events, and the writings of commentators on political and religious history. For example, the modern progressive goal of a one world government dates back to the utopian thinkers of the twentieth century as a means for ending war, curing world hunger and furthering the socialist idea of “social justice”.

A number of groups have long sought to bring global trade, finance, transnational businesses and natural resources, under international control. The vehicle through which they hope to exercise control is the United Nations. The most active of these groups are the American Humanist Association and the Unitarian Universalists Association; both recognized United Nations NGOs with consultative status on a number of UN committees. The ultimate goal is a secular federated world government as stated in the 1973 doctrinal statement of the American Humanist Association.

“We deplore the division of humankind on nationalistic grounds. We have reached a turning point in human history where the best option is to transcend the limits of national sovereignty and to move toward the building of a world community in which all sectors of the human family can participate. Thus we look to the development of a system of world law and a world order based upon transnational federal government.” Humanist Manifesto II (1973)

If we understand this, we are closer to understanding those who work for open borders, amnesty and a “path to citizenship” for illegal immigrants, not to mention such UN programs as Agenda 21 and the Kyoto Protocol. It also helps to explain the thinking of those who advocate the power to tax for the UN. Our national sovereignty is being attacked and slowly chipped away by the UN, issue by issue, and with the full support of too many in Washington; much in the same manner as the federal government has worked for years to destroy the sovereignty of the states.

America is on the verge of social and economic collapse. Once that happens, it will be a simple thing to surrender our sovereignty to the “democratic” protection of a world government. A large segment of our population — perhaps even a majority — have already been conditioned to accept it, through amoral secular education and the alluring promises of humanistic socialism. Any reform or reversal of our current trend must take place before we reach that point. Once we allow a societal collapse, through apathy or avarice, there will be no hope of returning to the America past generations sacrificed so much to build and preserve. As we prepare for the struggles ahead, it would be well to remember that our battles are not only fiscal and political; they are spiritual as well; “For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places.” Eph. 6:12.

This nation was founded by the Providence of God and it can only be salvaged by the Providence of God. Our government must return to our plainly written founding documents, the Declaration of Independence and the Constitution, and our churches must return to the authority of the Holy Scriptures if we are to see true reformation. A Biblical passage that has been quoted so frequently lately, that it has almost become a cliché, is “If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.” II Chronicles 7:14. Cliché or not, it is a promise from God that America cannot afford to ignore.

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Why We Lost

Now that the shock of the election results are beginning to wear off, Republicans and conservatives are starting to do a post mortem on what happened, in preparation for the next round of political fisticuffs. The general opinion that seems to be emerging is that we lost because of our preoccupation with the social issues; and that, they blame on the Tea Party. If that is your belief, let me suggest that you are being self-delusional.

We should have read the handwriting on the wall in ’08. Instead, as the nation continued to spiral out of control, we convinced ourselves that Obama had won by deception in ’08, and as the recession deepened and the economy continued to tank, the American people would wake up and toss him out of office. That didn’t happen. The message in Obama’s winning the Presidency in the first place was much more sinister than we realized.

What we failed to understand was that we had already lost the culture war and the election of a progressive (American socialist) government was simply the natural outcome of that loss. A country’s culture is the soul of that nation. That is, the culture is the essence of a nation’s identity. It is what makes one nation different from all the other nations on earth. Up until the middle of the past century, America was a Christian nation. That does not mean that all Americans were Christians, or that all Americans were conscious of their Christian heritage. It simply means that America’s system of government and the civil laws governing its society were based on Christian values. That fact is historically undeniable.

That began to change around 1950 when the left launched a deliberate and focused campaign against the prevailing culture. Within two or three decades, they had infiltrated and taken over our entertainment industry, our education system, our national media, and one of our two major political parties. Even as the battles raged, many conservatives celebrated the new freedoms that they anticipated would emerge from the secular society, based on secular values, being created. They would now be free to enjoy the basest of entertainment, relaxed sexual mores, and the disappearance of social etiquette that had restrained their behavior in the past.

Now that we have that secular society, a slight majority of Americans seem to be content with it, since they voted for it to continue. That should not be surprising, since most Americans under the age of fifty have never had the experience of living in a truly free society. They have been indoctrinated since early childhood in the secular doctrines of “social justice”, “equality” and unbridled “democracy” through our education system and the left wing propaganda of our national media. It should not be surprising that the guaranteed religious freedom found in our Constitution has been degraded to religious toleration only; or, that even that tolerance is not universally applicable to Christianity. “As ye sow, so shall ye reap”.

As dismal as the future of America looks now, there is still an ever-so-slight possibility that things can be turned around. It is never too late for reform. However, any meaningful reform must start with the basics and it must start with the individual. My generation is the last generation to have lived in a truly free county, and too many of us took the liberty we enjoyed for granted, hardly noticing their loss as they slowly were taken away. The so-called “Greatest Generation” will soon be gone and it will be up to the next generation to correct the mistakes we made through our apathy and ignorance. As Thomas Jefferson pointed out “the earth belongs to the living”. We all live in a country we either created or allowed to be created.  My advice to the current generation now leading the nation is to get out your Bibles and your Constitution and take back your culture, beginning with your churches, your community, your city, your county, your state and your political party—in that order— before you can hope to take back your country. There is no other way.

We have two years to prepare for the all important 2014 elections that will give us, possibly, our last opportunity to take back the Senate and increase the number of conservatives among the House membership. The only groups in a position to affect meaningful reform are the Tea Parties. However, they must become better organized at the state and local levels so that they do not work at cross purposes to each other as many did in the last three primaries. This is particularly true in those states that have essentially become socialist oligarchies like Illinois and California. We need fifty state-wide Tea Party conventions by 2014 to agree on candidates to run in the Republican primaries since there is not time to establish an effective alternative party. Without unified goals we will just split the conservative vote and accomplish nothing.

The Progressive Mind: Tactics

Why Are Progressives So Successful? Why Do Governments Collapse?
By David F. Delorey, Jr.
Political patronage is defined as the use of state resources to reward individuals for their electoral support. Progressives (American Socialists) use this approach, culling people by race, sex, religion, income, class and/or political affiliation, and then appealing to each group’s specific wants and desires, with the overall goal to cobble together a majority vote to get their Progressive politicians elected. In process, they promote and inculcate the need to band together with other Progressives and rebel against the “enemy” — the dastardly politicians, the rich, and the greedy corporations, who by no mere coincidence collectively represent a minority of the voting pool.

In practice, Progressives put forth the need for hasty “emergency” measures to combat the “enemy”, and justify these “temporary” needs for setting aside the requirements of the Republic’s Constitution and laws, presumably for the “greater good”. Fiscal restraint is a foreign concept to Progressives — there is rarely a mention of how the cost of their agenda bears upon government’s capacity to fund it. Often times their process oriented “emergency” measures have lofty goals and promises for results, delayed long into the future. Most of these measures lack clear implementation details, especially the negative elements, before such is enacted. This gives the Progressive the initial opportunity to claim a measure of success with “change”, then blame any failures on the “enemy”, which gives rise to the need for even more “emergency” measures to sustain combat with the “enemy”.

Claims by the “enemy” are often met with personal attacks against them when the “enemy” puts forth logical, sound and compelling evidence against the Progressive measures. Progressives prefer to focus on selecting “victims” to justify the expansion of the welfare state, rather than resolve issues using the traditional nature of people to provide charity. They achieve the goal of producing an expanded government by promoting the confiscation of wealth from one group to benefit another group in order to curry political favor. They rely heavily on redistribution of wealth as the key to success. However, the recipients of wealth redistribution often go not to the “victims”, but to the expansion of Progressive machinery creating more and more government control over the people. The economy worsens. No matter, the Progressive presses on -– such is the fault of the “enemy”, world events or political opponents — not them.

Progressives have powerful tools in their toolbox — they foster hatred, envy, blame, grievance and demands for entitlements to “victims.” Lost by them, is the American spirit embodied in the Declaration of Independence and a Constitution that encourages initiative, personal responsibility and the right to be free from an unlimited federal government. TEA Party patriots are the newest group of conservative “extremists” as defined by Progressives. This is entirely logical because Progressives oppose our Republic’s fundamental founding principles and ignore the Constitutional requirements which are inconsistent with the Progressive agenda. Their philosophy is a paradox of values -– it represents a body of political elements that collectively contradicts itself. One need look no further than our history books to learn that the Progressive march toward a utopian socialist state, facilitated by an expanded federal government, finds little respect for such as those, more or less fortunate, who lie outside of their political critical mass of potential voters, or for human life for such as the unborn.

The plain fact is that government is the actual “enemy” of the engine of growth and prosperity because it does not create wealth — it consumes it. Applying the Progressive’s goal to expand government results in incrementally punishing achievement and rewarding failure. Interference into business by a government that would confiscate business profits, enslaves producers of goods and services. Liberty and freedom become casualties. Plainly, jobs are reduced when government makes it more difficult for employers to earn success in a diminished level of free market opportunities. Big government has a compelling and sustained historical record of inefficiency in using resources and producing politically driven regulations.

These factors stand to undercut the tenets that the country was founded upon: fiscal responsibility, constitutionally limited government and free markets. And so it is that the more an economy is centrally planned by government, the further we move away from our founding principles which have kept us safe, free and economically stable. And there we have it -– the Progressive movement in America today is a quest to affect broader governmental powers over the individual; it is based on an insidious and
deceptive process which constantly seeks out “victims”, then divides the “victims” into discrete groups of voters, with focused promises to each group of their “fair share” level of largesse from the public treasury, or from such wealth confiscated from the “enemy”, in exchange for their vote for Progressive politicians.

The cycle continues with Progressives promising more largesse and blaming all promised failures on the dastardly “enemy” which accordingly justifies the need to vote for more Progressives. The cycle ends in bankruptcy – that is, when the treasury of the government can no longer support the levels of largesse demanded by the Progressives and their “victims.”

Conclusion: A politician who is committed to telling the truth in an election campaign will usually be defeated by a clever and resourceful purveyor of deception. That is why Progressives are so successful and that is why governments collapse.

– Copyright © September 25, 2012 – David F. Delorey, Jr.

The Progressive Mind: Socialist Planning for America

By Corliss Lamont

In this segment Mr. Lamont presents a hypothetical plan for the establishment of a central planning system for the entire nation. While this was written in 1939 and obviously did not materialize as he planned, the Lamont plan is only one of many that have been produced, over the years, by different socialist organizations like the Socialist Party USA, The Communist Party USA, The Democratic Socialist of America, and others. None of these plans have been realized in their entirety. The ones coming closest are Education and now Health Care. Tentative steps toward banking and manufacturing control were made with TARP and the GM bailout. You will notice, however, that the vast bureaucratic shadow government that manages our economy has many of the same characteristics as those foreseen by Lamont.

If Barack Obama is reelected to another four-year term, there is no doubt he will keep moving the nation in a direction similar to that advocated by Lamont.  The process of transitioning from capitalism to socialism will not be as smooth or as peaceful as that pictured by Lamont but in the end will be just as thorough, unless the trend is reversed by the American people. The hypothetical election date of 1952 chosen by Lamont could very well turn out to be 2012, with the first four-year plan ready to go into operation by 2016 or 2020. The two assumptions mentioned by Lamont, Congress and the Supreme Court do not look nearly as farfetched today as they did a few years ago. Think about that as you read the article.

Socialist Planning for America
To make the picture of Socialist planning more concrete, let us visualize how it would work out in a definite country. And let us take as an example our own U. S. A. Suppose that in the elections of 1952 or sometime thereafter the American people elect a President and a substantial majority in Congress [2008] pledged to establish Socialist planning throughout the country. Let us assume, furthermore, that the Supreme Court declares the legislative measures of the planning Party constitutional [Obamacare] or that they are promptly made so through amendment of the Constitution at [FOAVC] special state conventions. Leaving aside for the moment a discussion of the necessary transitional steps and without pretending to any finality, let us see what the pattern of American Socialist planning would in general be like.

Apart from the political field, the key organization in the American planning system, as in any other, would be the National Planning Commission, with headquarters at Washington, D. C. The President, with the advice and consent of the Senate, chooses the eighteen members of the Executive Council of this Commission, including its Chairman, who sits as a member of the Government Cabinet. The appointments are non-political and are made from among experts especially qualified by wisdom and experience to deal with broad social and economic problems. The Commissioners are to regard themselves as trustees of the public interest. They will each receive salaries of $15,000 a year, except the Chairman, who will draw $20,000. [in 1939 dollars]

Each of the Commissioners heads one of the eighteen different Divisions into which the Commission is organized. These Divisions, together with some of their more prominent Sections, are as follows:

Heavy Industry,
Steel
Machinery
Housing
Timber, Etc.
Light Industry
Clothing
Footwear
Furniture
Motor Vehicles
Finance
Banking and Currency
Capital Investment
The Budget
Taxation
Transportation
Railroads
Motor Transport
Air Transport
Shipping (Domestic)
Communications
Telephone
Telegraph
Radio [TV, Internet]
Post Office
Distribution
Retail Trade
Storage
Co-operatives
Consumers’ Needs
Social Welfare
Unemployment Insurance
Pensions
Public Health
Recreation
Education
Primary Schools
Secondary Schools
Technical Institutes
Colleges and Universities
Culture
The Arts
Motion Pictures
Science and Invention
The Press
Fuel and Power
Coal
Oil
Electricity
Gas [add bio, solar, nuclear, wind, etc.]
Agriculture
Cotton
Wheat
Dairy
Livestock
Conservation & Reclamation
Forests
Soil
Sub-soil Deposits
Flood Control
Foreign Trade
Exports
Imports
Merchant Marine
Foreign Exchange
Defense
Army
Navy
Air Force
Munitions
Labor
Wages and Hours
Workers’ Safety
Employment Exchange
Women Workers
Statistics & Research
Industrial
Agricultural
Population
Social Trends
Organization
Education of Planning Experts
Personnel
Coordination
Inter-Divisional Problems
Public Relations

The functions of all but the last two of the Divisions are clear enough from their names. The Organization Division has charge of managing and selecting the personnel of the Commission, which employs as trained statisticians or technical experts at least a thousand persons, as well as thousands of ordinary clerical workers. Appointment to a responsible position on the Planning Commission or the numerous subordinate commissions throughout the country is on a civil service basis. Only men and women who have fulfilled certain definite requirements are eligible for appointment. And one of the chief tasks of the Organization Division is to ensure the proper training of planning experts in a special Government institution or in already existing colleges and universities, which will establish special courses or graduate work for those who are aiming to enter the profession of planning.

The Co-ordination Division, the head of which is always the Chairman of the entire Commission, has the crucial task of constructing and synthesizing the final National Plan from the figures and projects submitted by the other Divisions and by the various sub-commissions throughout the country. It also oversees the relations between the National Commission and the Government, and through its Public Relations Section takes care of all publicity work for the Commission.

The Plans drawn up by the National Planning Commission and its subordinate commissions, while tremendously important and influential, are by no means final. Bills embodying the National Plans must be passed by Congress and signed by the President. They are subject to debate, criticism, and amendment like all other measures brought before the Senate and the House of Representatives*. Since, moreover, the Commission is not an administrative body, its different Divisions, except those of Statistics & Research and Organization, must be matched in the national Government by corresponding administrative Departments, each of which has a planning board within it as one of its Bureaus. This naturally entails a considerable amount of reorganization in the structure of the Federal Government. The Departments of State and of Justice alone will retain their present set-up. *[Ed. Note: We know by our experience with the bureaucracies and the President’s tzars how this will work]

Each of the forty-eight states in the Union has its own Planning Commission, of which the ten members are appointed by the Governor. Each of the territories and dependencies, such as Alaska and Hawaii, the Pacific Islands and the Canal Zone, also has its separate Planning Commission; and in addition there is a special Regional Commission with responsibility for them all. There are also nine regional Planning Commissions covering various states as groups according to the following arrangement:

New England Region
The six New England states; Headquarters at Boston
Middle Atlantic Region
New York down through West Virginia; Headquarters at New York City
South Atlantic Region
Maryland to Georgia, including Kentucky and Tennessee; Headquarters at
Atlanta
Gulf Region
Florida west to Louisiana and Arkansas; Headquarters at New Orleans
Great Lakes Region
Ohio, Indiana, Illinois and Michigan; Headquarters at Chicago
Great Plains Region
Wisconsin in the east to the Dakotas in the west and Missouri and Kansas in the south; Headquarters at Des Moines
Southwest Region
Texas to Arizona Headquarters at Dallas
Rocky Mountain Region
Six mountain states with Montana in the north, Colorado in the south and Nevada in the West; Headquarters at Denver
Pacific Region
California, Oregon and Washington; Headquarters at San Francisco

Within the states each county and each city has its own Planning Commission. And in the more sparsely settled agricultural districts every unit of population amounting to 10,000 or more has a commission.

There are also Planning Commissions for each industry as a whole and for each sub-division of each industry. For instance, the entire steel industry as a unit has its Planning Commission; the various regional steel trusts, of course publicly owned and operated, likewise have their separate commissions; as does each substantial producing unit within each trust. Finally there exist planning committees in each factory and even in each shop of each factory.

Thus, all of the workers [unions] in a steel factory combine to put through a plan for that unit; all the factories in a certain district combine to put through a central plan for the steel trust of which they are part; all the trusts combine to put through a plan for the steel industry as a whole; and then the steel industry itself, the coordinating centers of which are a Division of the Planning Commission and a Department of the Government, combines with every other industry and economic activity to put through a balanced Plan for the entire country. The geographical planning bodies operate on the same principle, that is, from the smaller up through the larger. The cities’ plans fit into that of the county, the counties’ into that of the state, the states’ into that of the region, and the regions’ into that of the entire country.

Planning under Socialism is, then, a complex process embodying three different but intimately related aspects. All of the plans are, in the first place, plans over a definite period of time. Taking the presidential term in America as an appropriate time-span, our Commission adopts for the nation a First Four-Year Plan, a Second Four-Year Plan, a Third Four-Year Plan and so on. Inside these Four-Year Plans there are one-year, quarterly and even one-month plans.

In the second place, there is the geographic aspect of the plans. Besides the country as a whole, each region, state, county and city has its own four-year and one-year plan. In the third place, there is the functional aspect of the plans as applied to each industry and its sub-divisions. These three fundamental aspects of planning the temporal, the geographic and the functional are thoroughly integrated by the National Planning Commission in each big Four-Year Plan.

It is this Commission that welds together in one vast, integrated, long-range Plan all the minor plans and reports of all the various regions, states, counties, cities, industries, factories, distribution units, and cultural organizations throughout the entire United States. It is this Commission which takes the thousand and one estimates pouring in from all parts of the country and correlates them into the considered and rational whole which constitutes a National Plan.

It is this Commission at Washington which from week to week, from month to month, from year to year, casts its all-seeing eye over the economic activities of the nation and shifts the schedules within the Plan to keep pace with new and unforeseen developments. America’s First Four-Year Plan will need careful and extensive preparation before it can be put into effect. If our planning Party is victorious in the national elections of November, 1952, it will have two months of leeway before the new President and Congress come into office in the first week of January, 1953. Accordingly, it can be expected to have ready for action by Congress bills empowering the Government to take over at once a few key enterprises such as the railroads, communications, fuel and power, and most important of all the banks. Provision will be made for appropriate compensation of the owners over what must necessarily be a long period of years. The planning Party will also submit bills establishing the general structure of the planning system and giving very general estimates of what is to be accomplished during the First Four-Year Plan. I expect that the complete functional activation of existing capacity will be the main productive goal of this period.

Eight months later, September 1, 1953, the National Planning Commission will be ready with a preliminary draft, giving detailed figures and measures for the First Four-Year Plan. During the next three months this draft will be published abroad throughout the land and given the widest kind of publicity in newspapers, magazines, radio programs, public meetings, educational institutions, scientific institutes and other organs of public opinion. At the same time the Planning Commission will send out to all subordinate planning organizations the provisional quotas to be fulfilled in the geographical or
functional sectors for which they are responsible. Thus, the preliminary Plan will be discussed and criticized from one end of the country to another both by the public in general and by the specific planning, economic, and cultural agencies concerned in translating it into actuality. “How can we improve the Plan?” will become a nation-wide slogan.

By December 1, the various planning units, after careful consideration and in light of whatever suggestions have been made, will return revised drafts to the Planning Commission. During the next six weeks the Commission will proceed, after receiving all available information and criticism from its sub-commissions and other sources, to draw up a final Plan for presentation to Congress in the middle of January, 1954. Congress will then thoroughly discuss the Plan according to its regular procedures and will undoubtedly amend it to some degree. We can probably count on having the President’s signature on the final congressional planning bill by May 1, 1954, so that it can become definitely operative at the beginning of the fiscal year on July 1.

This means that the First Four-Year Plan (ending June 30, 1957) will be in operation as a completed and functional whole for only three years out of the full period. There is no way of avoiding this, however, for the first National Plan ; but the second will overcome any time-lag and will go into effect July I, 1957. All of the Plans will begin and end with the regular fiscal year. The Planning Commission will release its preliminary draft of the Second Four-Year Plan (1957-1961) on July 1, 1956, to run the gamut of public opinion. Its final version it will have ready promptly on January 1, 1957, for submission to Congress. The Commission will not wait for the formal completion of one Four-Year Plan before starting to draw up estimates for the next; and this preparatory work will ordinarily begin a full year before each Plan is due for presentation to Congress.

The standard-of-living goal for each family of four at the end of the First Four-Year Plan will be an annual minimum of $5,000 [1939$] in consumers’ values, including those made available by the extension of free government services. This goal will be achievable through the full utilization of our present labor supply, taking in the able-bodied unemployed but totally ruling out child labor, on the basis of a seven-hour day, a five-day week and a yearly holiday of three weeks. The minimum mentioned would be even higher if the new regime were able to eliminate America’s soaring defense and armament expenditures.

In any case, my $5,000 estimate by no means adequately represents the advantages which the American people will enjoy under Socialist planning. For it is impossible to evaluate in financial terms even the physical gains which will, for instance, accrue to the urban masses when they all live in houses or apartments which have plenty of room, good light and fresh air. And it is also out of the question to put a definite money value on the immense psychological boons which Socialism will bring, especially through insuring everyone a job and eliminating the chief economic worries of the present.

One of the most important problems that our planning experts will have to face is that of procuring trustworthy data on the capacities and needs of the various areas and of the country as a whole. It is not possible even to start planning without some such data; yet it is not possible to obtain complete and reliable data until planning is well under way. For only an organization like the National Planning Commission, with its hundreds of subordinate agencies in different localities and economic enterprises throughout America, is equipped to gather in and organize all the necessary statistics. The Commission’s own Division of Statistics & Research plays a central role here. Thus as planning makes headway, we shall see a steady improvement and enlargement of the statistical base, making the intricate network of economic forces more and more measurable and bringing about what has aptly been called by economists complete economic visibility.

In regard to this important matter of statistics, Socialist planning in America will not, as in Soviet Russia, have to start almost from scratch. For there already exist here a number of agencies, both public and private, which are constantly building up the kind of statistical knowledge that planning demands as a foundation. In the public field the most useful of these is the National Resources Planning Board, formerly called the National Resources Committee, which has published a number of volumes particularly pertinent to the subject of planning. Then we have the reports of the numerous local planning organizations, there being in the U. S. A. at present [1939] no less than 42 state planning boards, 400 county and over 1,100 municipal all with very limited powers, of course.

In addition, each of the main Departments of the Federal Government carries on vital fact-finding activities, outstanding in this respect being the Bureau of the Census and the Bureau of Standards, both under the Department of Commerce; the Bureau of Internal Revenue and the U. S. Public Health Service, both under the Treasury Department; the Bureau of Labor Statistics, under the Department of Labor; the Bureau of Home Economics, under the Department of Agriculture; and the Geological Survey, under the Department of the Interior. There has also been established recently at Washington a Central Statistical Board to render information and advice in the working out of inter-departmental problems. Under private auspices we find the substantial studies issued by the Brookings Institution and the Russell Sage Foundation, the reports of well-known research bodies such as the National Bureau of Economic Research and the National Industrial Conference Board, and the regular publications of organizations for the protection of the consumer such as the Consumers Union.

A huge aggregate of carefully organized and up-to-date statistics is as essential for the carrying out of a Four-Year Plan as for its preparation. For the National Planning Commission must keep informed on the progress or lack of progress that is being made throughout the country. For this reason the vast network of sub-commissions send into it frequent reports, at least once every two weeks. And the Commission has the duty, which is also an opportunity, of constantly revising the Four-Year Plans in the light of the specific situation at the beginning of each year, each quarter and each month. Whatever changes the Commission recommends to the Government Departments empowered to put them into effect, must of course fit in with the general perspectives laid down by the original Four-Year Plan, but need not conform exactly to the original figures.

These periodic readjustments are essential because in large-scale and long-range planning there are sure to occur both under-fulfillments and over-fulfillments. Then, too, it is perfectly obvious that a Planning Commission, even if composed of the wisest men in the world, is bound to make some miscalculations. Moreover, there exist certain factors which the most flawless technique of planning can hardly anticipate: weather conditions, for example, affecting the fortunes of crops throughout the country; new inventions and new discoveries of mineral wealth, affecting the progress of industry and agriculture; the movement of world prices, affecting payments for needed imports; and the whole international situation, affecting the day-to-day psychology of the people and the proportion of the industrial plant which has to be geared to defense. All of these reasons combine to make intelligent flexibility a natural and fundamental principle of social-economic planning in the dynamic and ever-changing society of today; the notion that Socialist planning implies some sort of strait-jacket thrown over the life of the people is very wide of the mark.

It is most important to note that the planning procedures which I have in mind make ample allowance for local initiative. The idea behind Socialism is not to set up a group of dictatorial supermen who sit in Washington and hand down orders to the rest of the country, but to provide for continuous and democratic interaction between the local planning units and the ones higher up, between the organizations on the circumference and those at the center. Within the framework of the National Plan it is possible and indeed highly desirable to give a good deal of leeway to the lower planning and administrative agencies in working out the details for their own particular sectors and in making final decisions on matters of primarily local significance. The National Planning Commission or the Federal Government steps in only if decisions seem to violate or disturb in some way the objectives and schedules of the National Plan.

Naturally enough, our Socialist planners are going to take full advantage of that bigness and concentration which is so marked a characteristic of American industry; and of the collectivism which objectively exists today in the form of mass concentration of workers in the factories, of extensive trade-union organization, and of the far-flung collective controls of corporate enterprise. A Socialist regime would find many problems solved in advance if it proceeded, for example, to take over the steel industry. For steel in the U.S.A., with a handful of monopolies ruling the roost, is already unified to such an extent that the step to total unification required by Socialist planning would be comparatively easy. And the same point holds true for a number of other basic industries. Indeed, if the present managements of these industries could be trusted to administer them faithfully on behalf of a Socialist commonwealth (and this is a very big if), they could be left substantially in charge.

Undoubtedly, in some cases concentration has already gone too far for the highest efficiency. There is such a thing as administrative breakdown from sheer bulk. But the unification intended by Socialism does not rule out decentralization in production. The over-concentration of industries in urban areas, resulting in crowded living conditions, bad air and lack of decent recreational facilities, is one of the first things which Socialist planning aims to rectify. The principle to be followed throughout is that of the greatest possible degree of decentralization and autonomy consistent with nation-wide co-ordination.

The final guarantee that local initiative will flourish under Socialism is that in the last analysis the drawing up and execution of any social-economic plan depends on individuals. The extent to which the beautiful blueprint of a Four-Year Plan is written into concrete material and cultural achievement rests upon the initiative and intelligence and energy of the workers and farmers, the technicians and professional people, throughout the length and breadth of America. Without their unceasing co-operation and support every Plan must fail. Hence the Public Relations Section of the National Commission has the vital task of educating every category of the population on the fundamentals of planning and of arousing their enthusiasm concerning the objectives and possibilities of the Four-Year Plans.

It must bring to every individual an understanding of his part in the total planning set-up and the connection between his own function and that of others. And this in itself constitutes one of the outstanding benefits of Socialist planning, since everyone in the community becomes able to see how and why his job fits into the larger scheme of things and to feel a significance and dignity in his work that was seldom present before. In this way central planning for the whole nation brings central planning into the activity of each person, pulling together the conflicting strands of his nature and making of them a
potent unity.

Socialist planning, carried out in America in the American way, will present to the citizens of this country the greatest challenge they have ever had. Limited as war planning was in the U. S. and destructive as was its objective, it did show that the theory and practice of nation-wide planning is not something entirely alien to the American genius. It is my firm opinion that under Socialism all the idealism and practical engineering technique for which America is so noted, freed at last from the shackles of the profit system, will have unprecedented opportunity for fulfillment in projects of almost unlimited scope and grandeur. There will be no lack of tasks to appeal to the imagination and ambition of new generations. And the American people in their boundless energy will sweep forward to conquer new heights of economic and cultural achievement.

Also See
Introduction to the Progressive Mind
The Progressive Mind, Part 1: Social Planning for Abundance

Paul Ryan’s Acceptance Speech

Full text of speech
Delivered August 29, 2012

“Mr. Chairman, delegates, and fellow citizens: I am honored by the support of this convention for vice president of the United States.

I accept the duty to help lead our nation out of a jobs crisis and back to prosperity – and I know we can do this. I accept the calling of my generation to give our children the America that was given to us, with opportunity for the young and security for the old – and I know that we are ready.

Our nominee is sure ready. His whole life has prepared him for this moment – to meet serious challenges in a serious way, without excuses and idle words. After four years of getting the run-around, America needs a turnaround, and the man for the job is Governor Mitt Romney.

I’m the newcomer to the campaign, so let me share a first impression. I have never seen opponents so silent about their record, and so desperate to keep their power.

They’ve run out of ideas. Their moment came and went. Fear and division are all they’ve got left.

With all their attack ads, the president is just throwing away money – and he’s pretty experienced at that. You see, some people can’t be dragged down by the usual cheap tactics, because their ability, character, and plain decency are so obvious – and ladies and gentlemen, that is Mitt Romney.

For my part, your nomination is an unexpected turn. It certainly came as news to my family, and I’d like you to meet them: My wife Janna, our daughter Liza, and our boys Charlie and Sam.

The kids are happy to see their grandma, who lives in Florida. There she is – my Mom, Betty. My Dad, a small-town lawyer, was also named Paul. Until we lost him when I was 16, he was a gentle presence in my life. I like to think he’d be proud of me and my sister and brothers, because I’m sure proud of him and of where I come from, Janesville, Wisconsin.

I live on the same block where I grew up. We belong to the same parish where I was baptized. Janesville is that kind of place. The people of Wisconsin have been good to me. I’ve tried to live up to their trust. And now I ask those hardworking men and women, and millions like them across America, to join our cause and get this country working again.

When Governor Romney asked me to join the ticket, I said, “Let’s get this done” – and that is exactly, what we’re going to do.

President Barack Obama came to office during an economic crisis, as he has reminded us a time or two. Those were very tough days, and any fair measure of his record has to take that into account. My home state voted for President Obama. When he talked about change, many people liked the sound of it, especially in Janesville, where we were about to lose a major factory.

A lot of guys I went to high school with worked at that GM plant. Right there at that plant, candidate Obama said: “I believe that if our government is there to support you … this plant will be here for another hundred years.” That’s what he said in 2008.

Well, as it turned out, that plant didn’t last another year. It is locked up and empty to this day. And that’s how it is in so many towns today, where the recovery that was promised is nowhere in sight.

Right now, 23 million men and women are struggling to find work. Twenty-three million people, unemployed or underemployed. Nearly one in six Americans is living in poverty. Millions of young Americans have graduated from college during the Obama presidency, ready to use their gifts and get moving in life. Half of them can’t find the work they studied for, or any work at all.

So here’s the question: Without a change in leadership, why would the next four years be any different from the last four years?

The first troubling sign came with the stimulus. It was President Obama’s first and best shot at fixing the economy, at a time when he got everything he wanted under one-party rule. It cost $831 billion – the largest one-time expenditure ever by our federal government. It went to companies like Solyndra, with their gold-plated connections, subsidized jobs, and make-believe markets.

The stimulus was a case of political patronage, corporate welfare, and cronyism at their worst. You, the working men and women of this country, were cut out of the deal. What did the taxpayers get out of the Obama stimulus? More debt. That money wasn’t just spent and wasted – it was borrowed, spent, and wasted.

Maybe the greatest waste of all was time. Here we were, faced with a massive job crisis – so deep that if everyone out of work stood in single file, that unemployment line would stretch the length of the entire American continent. You would think that any president, whatever his party, would make job creation, and nothing else, his first order of economic business.

But this president didn’t do that. Instead, we got a long, divisive, all-or-nothing attempt to put the federal government in charge of health care.

Obamacare comes to more than two thousand pages of rules, mandates, taxes, fees, and fines that have no place in a free country.

The president has declared that the debate over government-controlled health care is over. That will come as news to the millions of Americans who will elect Mitt Romney so we can repeal Obamacare.

And the biggest, coldest power play of all in Obamacare came at the expense of the elderly.

You see, even with all the hidden taxes to pay for the health care takeover, even with new taxes on nearly a million small businesses, the planners in Washington still didn’t have enough money. They needed more. They needed hundreds of billions more. So, they just took it all away from Medicare. Seven hundred and sixteen billion dollars, funneled out of Medicare by President Obama.

An obligation we have to our parents and grandparents is being sacrificed, all to pay for a new entitlement we didn’t even ask for. The greatest threat to Medicare is Obamacare, and we’re going to stop it.

In Congress, when they take out the heavy books and wall charts about Medicare, my thoughts go back to a house on Garfield Street in Janesville. My wonderful grandma, Janet, had Alzheimer’s and moved in with Mom and me. Though she felt lost at times, we did all the little things that made her feel loved.

We had help from Medicare, and it was there, just like it’s there for my Mom today. Medicare is a promise, and we will honor it. A Romney-Ryan administration will protect and strengthen Medicare, for my Mom’s generation, for my generation, and for my kids and yours.

So our opponents can consider themselves on notice. In this election, on this issue, the usual posturing on the Left isn’t going to work. Mitt Romney and I know the difference between protecting a program, and raiding it. Ladies and gentlemen, our nation needs this debate. We want this debate. We will win this debate.

Obamacare, as much as anything else, explains why a presidency that began with such anticipation now comes to such a disappointing close.

It began with a financial crisis; it ends with a job crisis. It began with a housing crisis they alone didn’t cause; it ends with a housing crisis they didn’t correct.

It began with a perfect Triple-A credit rating for the United States; it ends with a downgraded America.

It all started off with stirring speeches, Greek columns, the thrill of something new. Now all that’s left is a presidency adrift, surviving on slogans that already seem tired, grasping at a moment that has already passed, like a ship trying to sail on yesterday’s wind.

President Obama was asked not long ago to reflect on any mistakes he might have made. He said, well, “I haven’t communicated enough.” He said his job is to “tell a story to the American people” – as if that’s the whole problem here? He needs to talk more, and we need to be better listeners?

Ladies and gentlemen, these past four years we have suffered no shortage of words in the White House. What’s missing is leadership in the White House. And the story that Barack Obama does tell, forever shifting blame to the last administration, is getting old. The man assumed office almost four years ago – isn’t it about time he assumed responsibility?

In this generation, a defining responsibility of government is to steer our nation clear of a debt crisis while there is still time. Back in 2008, candidate Obama called a $10 trillion national debt “unpatriotic” – serious talk from what looked to be a serious reformer.

Yet by his own decisions, President Obama has added more debt than any other president before him, and more than all the troubled governments of Europe combined. One president, one term, $5 trillion in new debt.

He created a bipartisan debt commission. They came back with an urgent report. He thanked them, sent them on their way, and then did exactly nothing.

Republicans stepped up with good-faith reforms and solutions equal to the problems. How did the president respond? By doing nothing – nothing except to dodge and demagogue the issue.

So here we are, $16 trillion in debt and still he does nothing. In Europe, massive debts have put entire governments at risk of collapse, and still he does nothing. And all we have heard from this president and his team are attacks on anyone who dares to point out the obvious.

They have no answer to this simple reality: We need to stop spending money we don’t have.

My Dad used to say to me: “Son. You have a choice: You can be part of the problem, or you can be part of the solution.” The present administration has made its choices. And Mitt Romney and I have made ours: Before the math and the momentum overwhelm us all, we are going to solve this nation’s economic problems.

And I’m going to level with you: We don’t have that much time. But if we are serious, and smart, and we lead, we can do this.

After four years of government trying to divide up the wealth, we will get America creating wealth again. With tax fairness and regulatory reform, we’ll put government back on the side of the men and women who create jobs, and the men and women who need jobs.

My Mom started a small business, and I’ve seen what it takes. Mom was 50 when my Dad died. She got on a bus every weekday for years, and rode 40 miles each morning to Madison. She earned a new degree and learned new skills to start her small business. It wasn’t just a new livelihood. It was a new life. And it transformed my Mom from a widow in grief to a small businesswoman whose happiness wasn’t just in the past. Her work gave her hope. It made our family proud. And to this day, my Mom is my role model.

Behind every small business, there’s a story worth knowing. All the corner shops in our towns and cities, the restaurants, cleaners, gyms, hair salons, hardware stores – these didn’t come out of nowhere. A lot of heart goes into each one. And if small businesspeople say they made it on their own, all they are saying is that nobody else worked seven days a week in their place. Nobody showed up in their place to open the door at five in the morning. Nobody did their thinking, and worrying, and sweating for them. After all that work, and in a bad economy, it sure doesn’t help to hear from their president that government gets the credit. What they deserve to hear is the truth: Yes, you did build that.

We have a plan for a stronger middle class, with the goal of generating 12 million new jobs over the next four years.

In a clean break from the Obama years, and frankly from the years before this president, we will keep federal spending at 20 percent of GDP, or less. That is enough. The choice is whether to put hard limits on economic growth, or hard limits on the size of government, and we choose to limit government.

I learned a good deal about economics, and about America, from the author of the Reagan tax reforms – the great Jack Kemp. What gave Jack that incredible enthusiasm was his belief in the possibilities of free people, in the power of free enterprise and strong communities to overcome poverty and despair. We need that same optimism right now.

And in our dealings with other nations, a Romney-Ryan administration will speak with confidence and clarity. Wherever men and women rise up for their own freedom, they will know that the American president is on their side. Instead of managing American decline, leaving allies to doubt us and adversaries to test us, we will act in the conviction that the United States is still the greatest force for peace and liberty that this world has ever known. President Obama is the kind of politician who puts promises on the record, and then calls that the record.

But we are four years into this presidency. The issue is not the economy as Barack Obama inherited it, not the economy as he envisions it, but this economy as we are living it.

College graduates should not have to live out their 20s in their childhood bedrooms, staring up at fading Obama posters and wondering when they can move out and get going with life. Everyone who feels stuck in the Obama economy is right to focus on the here and now. And I hope you understand this too, if you’re feeling left out or passed by: You have not failed, your leaders have failed you.

None of us have to settle for the best this administration offers – a dull, adventureless journey from one entitlement to the next, a government-planned life, a country where everything is free but us.

Listen to the way we’re spoken to already, as if everyone is stuck in some class or station in life, victims of circumstances beyond our control, with government there to help us cope with our fate.

It’s the exact opposite of everything I learned growing up in Wisconsin, or at college in Ohio. When I was waiting tables, washing dishes, or mowing lawns for money, I never thought of myself as stuck in some station in life. I was on my own path, my own journey, an American journey where I could think for myself, decide for myself, define happiness for myself. That’s what we do in this country. That’s the American Dream. That’s freedom, and I’ll take it any day over the supervision and sanctimony of the central planners.

By themselves, the failures of one administration are not a mandate for a new administration. A challenger must stand on his own merits. He must be ready and worthy to serve in the office of president.

We’re a full generation apart, Governor Romney and I. And, in some ways, we’re a little different. There are the songs on his iPod, which I’ve heard on the campaign bus and on many hotel elevators. He actually urged me to play some of these songs at campaign rallies. I said, I hope it’s not a deal-breaker Mitt, but my playlist starts with AC/DC, and ends with Zeppelin.

A generation apart. That makes us different, but not in any of the things that matter. Mitt Romney and I both grew up in the heartland, and we know what places like Wisconsin and Michigan look like when times are good, when people are working, when families are doing more than just getting by. And we both know it can be that way again.

We’ve had very different careers – mine mainly in public service, his mostly in the private sector. He helped start businesses and turn around failing ones. By the way, being successful in business – that’s a good thing.

Mitt has not only succeeded, but succeeded where others could not. He turned around the Olympics at a time when a great institution was collapsing under the weight of bad management, overspending, and corruption – sounds familiar, doesn’t it?

He was the Republican governor of a state where almost nine in ten legislators are Democrats, and yet he balanced the budget without raising taxes. Unemployment went down, household incomes went up, and Massachusetts, under Mitt Romney, saw its credit rating upgraded.

Mitt and I also go to different churches. But in any church, the best kind of preaching is done by example. And I’ve been watching that example. The man who will accept your nomination tomorrow is prayerful and faithful and honorable. Not only a defender of marriage, he offers an example of marriage at its best. Not only a fine businessman, he’s a fine man, worthy of leading this optimistic and good-hearted country.

Our different faiths come together in the same moral creed. We believe that in every life there is goodness; for every person, there is hope. Each one of us was made for a reason, bearing the image and likeness of the Lord of Life.

We have responsibilities, one to another – we do not each face the world alone. And the greatest of all responsibilities, is that of the strong to protect the weak. The truest measure of any society is how it treats those who cannot defend or care for themselves.

Each of these great moral ideas is essential to democratic government – to the rule of law, to life in a humane and decent society. They are the moral creed of our country, as powerful in our time, as on the day of America’s founding. They are self-evident and unchanging, and sometimes, even presidents need reminding, that our rights come from nature and God, not from government.

The founding generation secured those rights for us, and in every generation since, the best among us have defended our freedoms. They are protecting us right now. We honor them and all our veterans, and we thank them. The right that makes all the difference now, is the right to choose our own leaders. And you are entitled to the clearest possible choice, because the time for choosing is drawing near. So here is our pledge.

We will not duck the tough issues, we will lead.

We will not spend four years blaming others, we will take responsibility.

We will not try to replace our founding principles, we will reapply our founding principles.

The work ahead will be hard. These times demand the best of us – all of us, but we can do this. Together, we can do this.

We can get this country working again. We can get this economy growing again. We can make the safety net safe again. We can do this.

Whatever your political party, let’s come together for the sake of our country. Join Mitt Romney and me. Let’s give this effort everything we have. Let’s see this through all the way. Let’s get this done.

Thank you, and God bless you all”

The Constitution Changed Without a Vote – The Social Security Act of 1935

By David F.  Delorey, Jr.
In a mere four pages, ratified in 1788, the Constitution of the United Sates of America became a body of fundamental law which guarantees the natural God given rights of the people to establish justice, insure domestic tranquility, provide for a common defense, promote the general welfare and secure the blessings of liberty.

One hundred and forty one years later, the Great Depression began on Oct.  29, 1929 when the stock market crashed.  Suddenly, millions of people were out of work, bread lines formed to feed families, and the elderly could not support themselves.  A potential solution, like the one adopted in Germany in 1889, was a “social insurance” program run by the federal government which stressed the government’s responsibility to provide for citizens’ economic security.  In 1932, Franklin D.  Roosevelt was elected and he put forth such a plan where workers contributed to their future economic security through taxes paid while they worked and then paid out when they retired or became disabled.

From the outset, Roosevelt’s plan had a major stumbling block – – a plain reading of the Constitution finds absent the power of Congress to implement and run a federal social insurance program.  But, such legal limitation did not deter Congress, or the President, or the Supreme Court to assume powers not found in the United States Constitution.  The day that the Constitution was changed without a vote of the people came on August 14, 1935, when President Roosevelt signed the 33 page Social Security Act of 1935 into law.

This legislation indeed wove a new de facto constitutional thread into the United States constitutional fabric when the Congress and the President bypassed the Constitution Amendment process in Article V of the Constitution and ignored the limits of Congressional power stated in the “Enumerated Powers” in Article I of the Constitution.  Implicit with the avoidance of the required constitutional compliance process was that the several sovereign states were denied their right to deliberate, debate and ratify the law.  As a result, Congress and the President, on their own, raised everyone’s taxes and created a new federal government run insurance program bearing upon all the states.

Many have claimed over the years that the Social Security Act is unconstitutional which is the Constitutional right of the people to do so.  There is plenty of evidence to support the claim.  However, even if they are right and it is, the program is so deeply ingrained in the workings of Republic that such may be impossible to reasonably remove or replace it.  This constitutional precedent is now manifest as one of the largest financial burdens on the American taxpayer.  Along with the subsequently enacted federal social entitlement programs of Medicare and Medicaid in 1965, these programs now collectively pose a significant financial threat to the very existence of the Republic as the question of irresponsible levels of deficit spending by the Congress, potentially causing a bankruptcy of the government, becomes part of the political narrative today.

This evolving journey into the consequences of the Social Security Act began with its implementation in 1937 and its administration by the Congress.  The program started modestly with 60% of all wage earners, largely older Americans, being taxed about 2%.  According to the act, all tax revenue collected were to be deposited in a trust fund.  The fund, known as the Social Security Trust Fund, is technically comprised of two component funds in the original Social Security Act of 1935: Section 201, the Old-Age Survivors Insurance program; and Section 904, the Disability Insurance Trust Funds.

The Republic’s Social Security Act unsustainable financial dilemma came as a result of Congress converting what started as a self-funded program into an enormous de facto pay-as-you-go program by appropriating all “surplus” tax revenues [monies collected which exceed what was needed to pay benefits] to fund the annual federal budget.  With this process, Congress ignored its fundamental fiduciary responsibility to retain these assets in the Treasury to pay future benefits, and clearly ignored the word “trust” in the “Social Security Trust Fund.” Today, the Social Security Trust Fund contains only promises that the federal government will repay the fund.

This deficit spending process was facilitated by the specific wording in sections 201 and 904 of the original 33 page Social Security Act of 1935.  Both sections state that all monies collected may only be invested “in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States.” Congress was left to determine the nature of these “obligations”, which presumably could have included such tangible assets as gold, silver and the like.  Instead, Congress elected the option of “borrowing” the “surplus” taxes collected from the Social Security Trust Fund and spending the proceeds on other things.  From an accounting perspective, Congress created nothing more than a “Ponzi Scheme” because there is no guarantee that future tax payers can sustain the level of payments to current beneficiaries forever.  Such a system will eventually collapse, and could result in putting the federal government in default of its “obligations.”

By 1995, 95% of the American workforce, not subject to Congressional exclusions, were covered by the Social Security Act.  While many exemptions have been eliminated through 1990, six million government workers in the ten states of: Alaska, California, Colorado, Illinois, Louisiana, Maine, Massachusetts, Nevada, Ohio and Texas are still exempt from the act and it’s taxation requirements.

By 2011, more than 56 million people were covered by the Social Security Act spending $731 billion or 20% of the federal budget.  The Social Security Trust Fund had about $2.6 trillion in assets on the books.  The Federal Insurance Contributions Act (FICA) payroll tax rate was 6.2%, paid each by the employee and employer, for a total of 12.4%, for the first $106,800.00 of income.  There were no “surplus” revenues because payouts to beneficiaries exceeded the tax payments deposited in the Social Security Trust Fund.  Federal spending that year was $3.46 trillion and the Treasury posted a $1.3 trillion federal deficit.

Today, the Social Security Act is now the largest government social insurance program in the world measured in dollars paid.

Predictions are that the Disability Insurance Trust Fund [Section 904 of the Social Security Act] will exhaust in 2016.  After 2020, the United States Treasury will need to fund the entire program by redeeming the unfunded “obligations” Congress created to pay program beneficiaries.  From an accounting perspective, the Treasury will continue to use this process until the projected absolute exhaustion of the entire Social Security Trust Fund balance sheet in 2033.

The problem is getting worse.  The current economic recession, world economic problems, and other matters are putting a formidable upward pressures on future projections.  Evidence is that the 2012 projection from the “Social Security and Medicare Boards of Trustees” exhaustion date of 2033 comes 3 years earlier than 2036 exhaustion date projected in 2011, only one year earlier.

Congress is well aware of the “ticking time bomb” aspect of the Social Security Trust Fund.  Printing money is not the solution – it causes inflation which every American suffers from.  Kicking the can down the road” only passes the problem on to our children and grandchildren.  A “Balanced Budget” amendment to the Constitution pursuant to Article V of the Constitution would help.  But, Congress has consistently opposed it simply because balancing the books takes away the politically popular option of deficit spending.  This whole matter is plainly a “third-rail” issue because the people who funded the program through payroll taxes are not to be trifled with for fear that these people will reflect their outrage at the ballot box.  Getting reelected is indeed at risk.  Predictably, sustained legislative paralysis has ensued.  The fact is that the problem is real and it is being ignored by Congress and the President.

The consequences of what started in 1935 are now overwhelming as a result of a mere 33 pages of unconstitutional legislation.  If Congress only had stuck with the framer’s concept of a limited federal government, that is, without a federal government run insurance program, we would not be in this mess now.

Let’s look at this issue at the personal level to understand the problem in simple terms.  Commonly understood is that if somebody took your money with the intent to deprive you of said monies, this act would called theft.  It is a crime.  Now comes Congress persistently collecting taxes for one thing, then “borrowing” the money to spend it on another thing, and putting forth no plan to repay the “borrowed” monies.  Did Congress steal the “surplus” money from the Social Security Trust Fund? It certainly looks like it.

How can we solve the problem?

The first problem to solve is that Congress needs to stop stealing the “surplus” money from the Social Security Trust Fund and start putting back what it “borrowed.” As Will Rogers once said: “If you find yourself in a hole, stop digging. ”

The second problem to solve is cash flow.  When the “baby boomers” reach retirement age, the Social Security Trust Fund is projected to remain insufficient indefinably to satisfy the level of benefit payments compared to a smaller number of projected wage earners paying into it.  The only available long-term remedy is for Congress to either vote to raise Social Security Act taxes, or diminish Social Security Act benefits, or both.

The third problem to solve is the lack of personal and fiduciary responsibility.  As Alexander Tyler said in 1787: “A democracy cannot exist as a permanent form of government.  It can only exist until the voters discover that they can vote themselves largesse from the public treasury.  From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury, with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. ”

During the eight years from January 20, 1993 to January 20, 2001, the total public debt outstanding went from $4.1 trillion to $5.7 trillion for an increase of $1.6 trillion.  In the next eight years, it increased by $4.9 trillion to $10.6 trillion.  Today, less than four years later, it has increased by $5.3 trillion to $15.9 trillion.  Congress has not enacted a federal budget each year, as required by law, for the last 1,200 days.  The Senate majority leader has not allowed the budget from the House come to the Senate floor for a vote for three years.  The President’s two budgets for fiscal 2011 and 2012 were both unanimously rejected, respectively, in the Senate by 0-97, and the next year in the house of representatives by 0-414 and by the Senate 0-99.  None of the President’s four budgets included a plan to save Social Security.  There is no budget approved for the next fiscal year.  Why do we have this problem? The answer is simple.  Congress and the President embrace relentless deficit spending and they see themselves as responsible fiduciary actors.  Conversely, the Republic cannot continue to exist by “borrowing” 40 cents of every dollar it spends.  The fact is that we cannot spend our way out of debt!

Let’s set aside the details and get down to basic logic.  Congress doesn’t want a balanced budget.  If Congress wanted a balanced budget, Congress could simply take a vote to make it so.  Since Congress doesn’t want a balanced budget, “We the People” need to force the federal budget to be balanced.  Such will then force Congress every year to vote on what to fund, what not to fund, or to fund what is left over by raising taxes.  By these votes, the people will have a better measure to determine who in Congress is fiscally responsible, or not.  How do we make this happen? Start work on “Change” with a Constitutional amendment, pursuant to Article V of the Constitution, which requires the federal budget to be balanced.  After reading the foregoing story, if you are convinced that we need to act now – call your Senator and Member of the House – make them do it.

On January 20, 1961, John F.  Kennedy said “And so, my fellow Americans: ask not what your country can do for you – ask what you can do for your country.” Accordingly, “We the People” need to put the country first and stop voting for people who vote for deficit spending.  Let’s vote for candidates who have read, understand, and will abide by the Constitution and the oath to defend it.  If not, we eventually will be left with Alexander Tyler proven right once again, as governments before us have fallen for the same reason.

2012 Election Is Only the First Step

As a Constitution Conservative, I take a back seat to no one when it comes to defending the Constitution. In fact, I go much further than most conservatives do. I believe the Philadelphia Convention, and the thirteen state ratifying conventions were all done under the superintending providence of God. Therefore, I also believe that our founding documents contain God’s plan for the governing of America. Even a casual survey of American history clearly shows that whenever we deviate from that plan we pay a dear price in political turmoil and economic hardships.

It is imperative for the survival of the Republic that Mitt Romney be elected in November. Obama has to be turned out of office before he completes his mission to “fundamentally transform America” — if it is not too late already. Romney is the only alternative available at this time. However, we must not be misled into believing that electing Romney is going to turn things around overnight. Throughout his political life, Romney has been a follower, not a leader. That is not going to change automatically when he gets in the White House.

Furthermore, Romney has not exhibited a firm grasp of the Constitution during his campaign for the Presidency. For example, he has promised to “repeal and replace” Obamacare. Millions of voters will cast their ballot for him based on that promise. However, when he makes it, he is being disingenuous. The President does not repeal legislation, only Congress can do that. Even Romney knows that much about the working of our government, therefore, he is being disingenuous with the American people when he makes the promise. What he should say is, “on my first day in office I will urge Congress to repeal Obamacare as its first order of business.”  That he can do.

He also says frequently, “On my first day in office I will, by executive order, issue waivers to the states exempting them from having to enforce the provisions of Obamacare.” (Paraphrased) Here he is violating at least two clear provisions of the Constitution. Executive Orders, in the sense he is using the term, carries the weight of law. The very first sentence in the body of the Constitution, First Article, First Clause, clearly states, “All legislative powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.” Executive Orders, other than administrative orders directed to employees of the Executive Branch directly in the President’s chain-of-command, are unconstitutional.

When he indicates that he will not enforce Obamacare as President, he is in effect, saying that he and he alone will decide what the law is. Unfortunately, the same conservatives who condemn Chief Justice Roberts and the Obama Justice Department for making one-man decisions concerning which laws to enforce or what the law is in the first place, are the same conservatives that are cheering Romney on in his promises. Far too many critical decisions are made in our government by one person, whether it is the President, a bureaucratic Czar, or the “swing vote” on the Supreme Court. This has to stop, and should never be encouraged by a Constitution Conservative, whether or not we agree with the intended outcome.

One of the most overlooked sentences in the Constitution is found in the last sentence of Article II, Section 3, “He (the President) shall take care that the laws be faithfully executed…”  This is one of the few specific duties of the President spelled out in the Constitution. Whether we like it or not, Obamacare was passed by Congress and signed by the President, therefore, it is the law and the President is responsible for its execution.

However, it is not the law of the land. Article VI, paragraph two says, “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof … shall be the supreme Law of the Land; and the judges in every State shall be bound thereby,” Notice, it is the Constitution itself that is the Supreme Law of the Land, not the opinions of the Supreme Court or the acts of Congress when they conflict with the Constitution. One of the first landmark cases of the Supreme Court was Marbury vs. Madison in 1803. Chief Justice John Marshall, writing for the Court, said in his opinion, “a law repugnant to the Constitution is null and void.” Obamacare is not only repugnant to all thinking Americans, it is also repugnant to the Constitution; therefore, it is really no law at all. Nevertheless, until it is repealed by Congress, it is the duty of the President to enforce it. What then, can we do?

To answer that question we have to look to the hierarchy of sovereignty laid out in our Founding documents. In the Preamble to the Constitution which defines the purpose of our federal government, we read, “We the People…do ordain and establish this Constitution for the United States of America.”  The Tenth Amendment in the Bill of Rights says, “The Powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

In America, the supreme power resides with the people by natural law, as enshrined in the Declaration of Independence. In order to maintain a civil society, the people delegate certain powers to representatives elected by them to serve in the state legislatures that, in turn, are restricted by State Constitutions. In 1774, the people of the original thirteen states formed state governments made up of their elected representatives. Those state legislatures delegated certain powers to the First Continental Congress to form a confederation, primarily for the purpose of conducting the Revolutionary War. In 1786, Congress authorized a convention in Philadelphia for the purpose of strengthening the Articles of Confederation to make them more effective in dealing with issues common to all the states that could not be adequately handled by the states individually. In that Convention, the Constitution was written creating a federal government with limited powers for carrying out a finite number of enumerated responsibilities dealing mostly with national defense and commerce.

In the hierarchy of powers, the federal government as a creation of the Constitution has the least amount of legitimate power, carefully limited to those matters delegated to it by Article I, Section 8 of the Constitution. In all matters not delegated to the federal government by the Constitution, State Law is supreme over federal law. This power structure is not contradicted by the “Supremacy Clause” quoted above in Article VI. Since legislating health care is not one of the enumerated powers given to the federal government by the Constitution, the state legislatures can forbid the enforcement of Obamacare within its jurisdiction. Until it is repealed by Congress– hopefully in January 2013–, it is up to the state governments to prevent its implementation on a state-by-state basis.

While it is the responsibility of every Patriot to vote for Mitt Romney for President in the upcoming election, do not be misled into expecting President Romney to reverse the downward slide of American society without constant prodding from our side. Those patriots who expect to return to their slumber after the November election had better stock up on NoDoze. The real work begins in January of 2013 and we can expect it to continue for at least the next generation if we are to return America to the Constitutional Republic designed by our Founders. While we are attempting to regain control of our federal government, we also have to give serious attention to reforming our state governments. More on that later.