“The age of Austerity is over”! So declared the Washington Post Thursday. This “good” news comes from President Obama’s 2015 budget, which requests new spending and ditches the White House proposal to reign in entitlement programs.
The dictionary definition of Austerity is: a situation in which there is not much money and it is spent only on things that are necessary. Somehow the Post would have us to believe that the Federal Government that has had trillion dollar deficits four years running and is expected to have a $500 billion deficit this year was somehow experiencing austerity! Lets remember the sequester which has been reversed was only a cut in the rate of growth of the budget. Also the proposal to have Social Security COLA to a chained CPI was only a proposal, no ones benefits were affected. Brutal Austerity that!
No the Age of Austerity is ongoing and strangely tracks the Age of Obama. However it is not affecting the Federal Government but the American people. They are facing austerity because the labor participation rate is the lowest in 40 years. Their Net Worth has declined around 40% under Obama’s watch and income inequality has gotten worse. If the Age of Austerity was over how come 47 million Americans are on food stamps? Many Americans are going to be facing even worse austerity because their health insurance premiums are going up because of Obamacare, while millions of others are losing hours.
Unlike the Federal Government, the American people can’t declare their austerity over by printing money or borrowing more and more. If they did they would end up in jail or bankrupt. When the Government finally reaches that point we won’t be talking austerity but a full blown economic meltdown. I hope the American people remember who to blame.