As citizens have the capacity to invest, so do small businesses, the backbone of our country. Yet the proposal to raise the debt ceiling will only continue the weaken our already fragile business climate. More economic uncertainty is looming and capital spending among businesses at a 35 year low according to the National Federation of Independent Businesses. While some business may spend, most will retain their cash until greater fiscal stability is realized — instead of investing. Businesses are currently not able to count on our administration to get serious about deficit reduction.
When our country is being led by a President who insists on continued borrowing without fiscal restraint — such as a debt ceiling — then our country is in truly in deep financial trouble. We heard in his spring speech about his proposed “triggers” to decrease spending and increase taxes if deficit targets are not met. This would merely incentivize the liberals to intentionally avoid the targets to force otherwise unpalatable tax increases. Of course, the best and easiest solution for lowering the deficit is to not allow any more debt.
Current administration plans to raise the debt ceiling without strict spending cuts only confirm the abrogation of their fiduciary responsibility in order to play politics for reelection. By refusing to reduce the deficit through spending restraint, entitlement reform and program cutting, I submit that in the coming months, Obama will proclaim the Republican efforts to reshape Medicare to be a ploy for funding continued tax cuts for the top 2% income earners. Instead of tackling our budget crisis to allow citizens and businesses the ability to spend and invest their way to back to prosperity, our President’s proposals and politicking tremendously paralyze our economic recovery effort. It is truly embarrassing to have a President who makes such economically incompetent statements.