Federal Reserve Chairman Ben S. Bernanke warned Tuesday against both raising taxes and cutting spending. In testimony before the Senate Budget Committee, Mr. Bernanke said we must protect the fragile economic recovery, which saw some 243,000 jobs created in January. The problem with his line of thinking is that it adds to our ever-increasing debt, which is not only a burden for the current generation but also means higher taxes on our children and grandchildren. It is hardly a sustainable fiscal future.
The more we delay bringing our books into balance, the closer our problems resemble those that have crippled Europe. Going by the latest Index of Dependence on Government, released by the Heritage Foundation on Wednesday, we may already be a lot closer to Greece than we thought.
The Heritage study found more than 70 percent of federal spending goes to dependence programs, which it divides into health care and welfare, housing subsidies, retirement, higher education and agricultural subsidies. The index grew a dramatic 8.1 percent in 2010 alone. Growth in agricultural subsidies is perhaps the most egregious example of subsidizing the rich. Farm incomes grew by $7,271 in 2010, while the average non-farm American household saw income drop by $500. Despite the improved situation, farm subsidies have not declined.
Link:GHEI: A nation of moochers - Washington Times
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