This website is a member of Liberty Alliance, which has been named as an company.

Gang of Six Deal is Antithesis of Reform

Written on Friday, July 22, 2011 by

Print Friendly and PDF
gang of six

The media frenzy over Republican Senators and Barack Obama making nice over the debt ceiling crisis exposes for all Americans to see the extent to which both parties are aligned with Wall Street interests, and against the interests of Main Street and small business. The subject of this latest bipartisan love fest is the Gang of Six plan.

Americans want reform. The Republican majority in the House of Representatives was swept into office by promising reform. The Gang of Six Solution is the antithesis of reform.

Supposedly it offers the “balanced approach” of which Obama rambles on about endlessly. But in reality, the Gang of Six is one-sided. It offers only vague language about spending cuts. At best the Gang of Six plan might cut $500 billion, and even these cuts cannot be guaranteed. In real terms, Government would continue to grow.

Also the Gang of Six Solution would dramatically increase taxes. It calls upon the Senate Finance Committee to craft a tax reform plan that would actually increase taxes by 2.3 trillion over a ten year period. Some members even cynically call it a tax reduction by using a baseline that everyone knows is phony. This is a baseline that predicts all of the middle class tax cuts signed into law by President Bush was repealed.

All of this because rejecting the debt ceiling increase would require the US Government to right size itself and begin a pay as you go diet.

The secret they don’t want you to know is that the US Government is currently taking in over $200 billion a month. This could easily service the debt and forestall any default. It could pay current Social Security and Medicare bills. What would have to be cut is discretionary spending, and Congress doesn’t like this idea.

Gone would be money Obama wants to expand the EPA. Gone would be ethanol subsidies. Gone would be the billions poured into universities and colleges to subsidize the “intelligentsia.” Foreign aid money wouldn’t gush out. The cuts would hurt many in government employment, but default would never have to result, and grandma would still get her social security.

Neither party cares much about anything other than perpetuating their power. This discretionary spending money is the key tool they use to stay in power.

The Gang of Six deal is all about kicking tough budget decisions down the road and keeping the Ponzi scheme going for a few more years in the hope that the long suffering American people won’t notice that they are indentured servants to a system that is robbing them literally.

Americans for the last sixty years have believed that Congress was saving the money sent in as FICA premiums for old age. They have also believed that they were paying billions in Medicare insurance premiums so that once they turned sixty-five; they wouldn’t have to worry about scrambling for medical insurance in their retirement years.

The problem with this perception is that it was a gigantic fraud foisted on the public while the permanent establishment in Washington over spent. Programs in Washington were started to placate or buy off almost every group of voters from farmers to business owners.

When demographics worked in their favor with more young than old, the Congress just stole the pension money and spent it. Business was at the head of the gravy train, benefiting on everything from financing for the sale of Boeing airplanes to protecting bankers from going broke when their complex finance schemes ended in disaster.

At the top of the benefits pile-up is government workers. These workers have premium wages, premium benefits and premium pensions. And as USA TODAY pointed out this week, they are more at risk from death than from layoff once they get a coveted job with the US Government.

But now the demographic tide has turned. All of the Baby Boomers born after World War II want to retire. They all paid in their entire working lives. Whoops! The cupboard is bare, and the only way to pay all their claims on the vanished money is to borrow, borrow and borrow some more.

But most cynical in the Gang of Six proposal is what is called the “chained” CPI. This is code for changing the way social security checks will increase with inflation. High inflation, together with the Gang of Six proposals, will make seniors poorer, while protecting the discretionary spending from reform.

Remember, the key word is power. This discretionary spending money is the key tool they use to stay in power.

©2011 Floyd and Mary Beth Brown. The Browns are bestselling authors and speakers. To comment on this column, e-mail browns@caglecartoons.com. Together they write a national weekly column distributed exclusively by Cagle Cartoons newspaper syndicate. Floyd is also president of the Western Center for Journalism. For more info call Cari Dawson Bartley at 800 696 7561 or e-mail cari@cagle.com.

This column has been edited by the author. Representations of fact and opinions are solely those of the author.

Print Friendly and PDF
Posting Policy
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse. Read more.

  • Howard Lowe

    Absolutely perfect analysis. We are going through the same BS we got from FDR in the 1930s. I was a young teenager, but I remember the Bonus March by veterans of WWI. I remember, the WPA, the CCC, and other make work efforts to soothe the public. None of them worked. Helluva note to have to credit Adolf Hitler with getting us out of the depression. I do have to admit that the CCC trained a lot of future soldiers, by recalling Reserve Army & Marine Corps officers to run the operation.
    Now, we are approaching the same crisis – all perpetrated by inept non-caring politicos. Depression will come because no one in Washington has the B_ _ _ _ to stand up and be counted. These greedy B _ _ _ _ _ _ _ S are only interested in being re-elected. When will the public wake up? I am afraid not in time to stop our DECLINE and Demise.

    • OneCitizenOfTheRepublic

      In “Bill O’Reilly Responds to Obama’s Editorial” O’Reilly mistakenly quote polls that say most American want a deal even if it includes the massive spending increases that Obama wants…Bottom line…since Beck left, Fox has gone far more LEFT.

      And now the FOX owner (Rupert Murdoch) is in hot water and may cut and run (towards the left) to get the feds off his back.

      THERE IS NO LONGER A MAJOR “FREE PRESS” ORGANIZATION IN AMERICA.

      Only the political propaganda machine of the Fascist/Communist President Obama remains.

      If you don’t think Obama is a Fascist, consider this…

      “Against individualism, the Fascist conception is for the State …

      Liberalism [what we in America today call Conservatism]denied the State in the interests of the particular individual;

      Fascism reaffirms the State as the true reality of the individual.”
      Benito Mussolini

  • kenneth dameron

    A rather scathing article about the product of the Gang of Six. I have a lot of respect for Senator Coburn and Senator Conrad, and believe they tried to come up with something which would be politically acceptable. Perhaps, though, it is “Mission Impossible.”
    We just may be too far gone down the road to ruin, begun by FDR, exacerbated by LBJ, and piled on by all the other intervening Presidents.

    • R. Cook

      You hit the nail on the head with the term “politically acceptable”. This is the problem with Washington. Politically acceptable means politics as usual. The American people gave Washington a warning in 2010. Politically acceptable is no longer acceptable.

    • Tom Stewart

      Right-On R.Cook What We Need Is A Tea Party Patriot In Office, Yikeess, Not This Wishy-Washy Gang Of Six Muslim Lovers, Letting Hezbollah With A Presence In At Least 20 American Cities, Yikeess, Wake-Up America The Imposter Muslim Pres Obama Is Out To Destroy The USA, Stop Drinking Obamacare Kool-Aid And Start Drinking Some Good Old Kick-Ass H2O. God Bless America And Sarah Palin.

  • David Prior

    Gang is the property nomenclature. Their proposal is a house of cards, bent on the continuing spend spend spend atmosphere is DC.

  • am2sweet

    Aha, so the truth comes out. There is money to pay bills but the government doesn’t want to use it for bills. Instead they want to have party money first and worry about the bills later on. Frankly proposing some tax hikes isn’t the best news but the part about not expanding the EPA, and not subsidizing ethanol, pork for colleges, and foreign aid I think that’s a great start. Especially about the government being cut back. Minnesota got running again with Gov Dayton not happy with the budget. He didn’t get all his pork spending money and has to cut the state government by 15%. That was all the good parts.

  • tweety

    I thought some of these guys walked out of this group a while back. What’s changed? Personally, I wouldn’t get in the same room with Dick Durbin.

    • http://http/aol.com sean murry

      Durbin is an asshole.

    • http://verizon Ann Rand

      I’ll bet that durbin and schumer got their butts kicked and their lunch money taken everyday when they went to school. People like them just make you want to pound on their heads. No doubt, they were tattle tales, too.

    • Fourth ID

      We are far fom done with those 2!

  • http://yahoo.com tod

    Revolution is the only answer.

  • Ltjg

    The Last Depression was nothing compared to the Next Depression we will face. The next one will take us far longer to get out of. Government never lowers Taxes. I remember as a small boy my Grandfather having these discussions with me. He told me the story of how everyone lived and the promises goverment never kept. The taxes that continually increased. He talked about how the Taxes were more each year that Cost more than it was to even build his house. 3rd World status is looming by 2015 if we continue this Path. The EPA is pretty much useless. Why are they sending EPA money overseas? Citizens make the money, government takes it gives some to EPA and EPA sends it overseas. For What? Who is the EPA financing?

  • Mutantone

    Cut the debt by as much as $3.7 trillion over the next decade.” But “Raise the $14.3 trillion debt limit as soon as Wednesday”
    What a sick con job this is. We will spread the true current debit out over ten years but increase spending immediately? What type of mathematics are they using more of that famous “New Math”?
    If you can not pay for the $3.7 trillion dollars now, and you will continue to spend up to and past the $14.3 Trillion dollars every year, how in the world are you ever going to bring down the debit? Your not your just passing it along for the ten years as well only growing it much faster then ever before come on you dolts think for one second what your doing to th Nation. You have archived nothing at all. How about I tell my bank that I am going to pay off my loan over the next ten years but I want a loan for three times the amount every year until then..do you think they would go for it?
    It is time to fix the Tax rate at something very simple that every one can understand. Every one pays 15% of what they earn from any source, except the Military if they are serving our nation that is the least we can do for them, No exceptions other than that be it earned on a job or in stocks or in trading 15% no write offs no deductions. It is then so simple any kid in school beyond the seventh grade can figure out your taxes, no more tax lawyers needed no more IRS needed.
    The form is simple How much did you make this year 15% of that you send in or else fines and prison time will follow.
    How about instead we cut all the crap out and cut payments to foreign nations, terrorist groups (the Muslim Brotherhood), all abortion providers, all payments to staffers that just got an average wage increase of more than 8%. Force all government employees to pay into social security and Medicare, no more free flights make they pay for themselves just like the rest of us, after all they make two to three times what normal people make. Force all government wages to a level with the real world equivalent, cut out all the duplicate jobs, lord know their are far to many staffers for each congress person they should be doing their jobs instead of taking trips to Fire Island or fact finding mission over seas their job is here. NO more life time jobs in congress the limits were set in the Constitution but some how they butchered that to make it seem like it is a life time appointment read the Constitution it clearly states:
    “Section 2 – The House The House of Representatives shall be composed of Members chosen every second Year by the People of the several States, and the Electors in each State shall have the Qualifications requisite for Electors of the most numerous Branch of the State Legislature.
    No Person shall be a Representative who shall not have attained to the Age of twenty five Years, and been seven Years a Citizen of the United States, and who shall not, when elected, be an Inhabitant of that State in which he shall be chosen.”
    “Section 3 – The Senate The Senate of the United States shall be composed of two Senators from each State, elected by the people thereof, for six years; and each Senator shall have one vote. The electors in each State shall have the qualifications requisite for electors of the most numerous branch of the State legislatures.
    When vacancies happen in the representation of any State in the Senate, the executive authority of such State shall issue writs of election to fill such vacancies: Provided, That the legislature of any State may empower the executive thereof to make temporary appointments until the people fill the vacancies by election as the legislature may direct.”
    NO where does it say it is a life time appointment to the office or it would have said so just like the Judiciary it very clearly states that :
    “Section 1 – Judicial powers
    The judicial Power of the United States, shall be vested in one supreme Court, and in such inferior Courts as the Congress may from time to time ordain and establish. The Judges, both of the supreme and inferior Courts, shall hold their Offices during good Behavior, and shall, at stated Times, receive for their Services a Compensation which shall not be diminished during their Continuance in Office.”
    So from now on they serve their term in office be it two years or six but no more than that unless they run for a different office that is the law as written, it is not their right to keep in office to the detriment of the Nation.
    “The truth is more important than the facts.” – Frank Lloyd Wright
    “Freedom is never more than one generation away from extinction.” Ronald Reagan
    ID 10 T error in the administration

  • http://http/aol.com sean murry

    obummer ramles all the time must be on drugs.

  • http://WildlifeManagementPartners.com Randy Huffey

    I fear that it just isn’t “bad” enough yet for most to “wake up”. Too busy paying the bills, going to the big game on Sunday! Now with about 20% of America awake (Tea party people) Establishment types are quick to call us “radical” and pronounce our movements obliteration if no “compromise” is reached. The problem is the debt, not the debt ceiling! A downgrade is inevitable if the debt ceiling is raised. I doubt a downgrade will happen if there is no “deal”! I also know we will not default unless Ol
    Bummer chooses to pay special interests ahead of bond holders. Simple as that!

  • http://PatriotUpdate#188717 Nancy

    Durbin needs another Billion Dollars to finish his SPEEDY RAIL PROJECT he started threw the State Of Illinois (THAT NOBODY WANTED) Along with all the other senseless
    crap he pisses up the tax papers money on.
    When the train comes threw Central Illinois it concides of 5 cars there is no more than 15 people on board at any given run including the conductor! And we need a SPEEDY RAIL AT THIS GIVEN TIME
    ILLINOIS IS ONE OF THE STATES THAT IS WAY OVER TAXED NOW…DURBIN THE IDIOT
    AND THE STATE THE RANKS NUMBER ONE IN DEBT
    ACORDING TO THE CENTRAL ILLINOIS PAPER THIS MORNING.
    THEY WANT TO CUT AND TAX MORE
    BUT THE FOOLS ARE NOT TELLING YOU THEY PLAN TO SPEND ALOT MORE…
    DURBIN IS LOOKING FOR HIS BILLION TO FINISH HIS PROJECT…PLUS HE WANTS TO FEED AND HOUSE AND EDUCATE A FEW MILLION MORE ILLEGALS..VOTE ILLINOIS BRAIN LESS DEMO RATS OUT!!

  • http://PatriotUpdate#188717 Nancy

    DURBIN THE UNION PUPPET
    THE UNION WORKERS GET THE JOBS
    THE REST GO STAND IN LINE FOR FOR WELFARE AND FOOD STAMPS
    JUST THE WAY THE DEMO RATS WANT IT….
    THAN DISTRBUTE LESS TO THE AMERICAN PEOPLE AND GIVE THE ILEGALS MORE…..
    IS’NT THAT RIGHT
    WE HAVE SOME REAL UNAMERICAN —–HEADS RUNNING THE STATE OF ILLINOIS.

    • http://http/aol.com sean murry

      You said it right i hate durbin.

  • Ltjg

    What would happen if I borrowed $20 from a bank then when the payment became due went to another bank to borrow $40 paid the $20 loan but when the $40 was due went to another bank and borrowed $60….still keeping $20 in my pocket but paid off the $40. This could keep going on and on keeping $20 but always borrowing enough to pay back loans. Seems exactly the same as we are doing now. Never out of debt…still borrowing and each time keeping extra for self interests.

  • Ltjg

    Just left from watching Mr. Deficits (Obama) speach on FOX NEWS. Again he claims not to point fingers but clearly blaming Conservative Republicans when nothing was ever commented on how Democrat Controlled Congress, Senate and Presidency waited until now to address National Debt. They never had ant original plans until Republicans started coming out with their own. Still the only plan Democrats offer besides critizing conservatives is making cuts to SS, Medicare and VA benefits. The President still has not released a plan of his own. He is still blaming Republicans for everything and at the same time do some Campaigning for himself. Excuse me now while I go throw up.

  • http://PatriotUpdate#188717 Nancy

    THEY TALK CUT AND TAX
    NOT ONE WORD UTTERED ON
    NO MORE SPENDING!!

  • http://PatriotUpdate#188717 Nancy

    I Think America is split in 3 parts
    Working Americans are so busy trying to keep a roof over there heads THEY DO NOT PAY MUCH ATTENTION TO WHAT THE GOVERNMENT IS DOING.
    Than we have THE GENERATION WELFARE PARASITES THAT DO NOT CARE ABOUT ANYTHING JUST KEEP THAT FREE LIVING COMING
    AND LAST WE HAVE THE AMERICAN PATRIOTS THAT ARE BUSTING THERE ASS TRYING TO KEEP WHAT THEY WORKED SO HARD FOR
    AND DON”T WANT TO BE PUSHED BACKWARD BY A GOVERNMENT THAT SPENDS ARE FUTURE AND ARE FAMILY’S FUTURE AWAY!!!

    • Ltjg

      Dear Nancy, I agree. I for one am NOT willing to pass MY Sins onto anyone else. In his way, Mr. Deficit is also holding T Party members accountable for making it hard to come up with a mutual agreement or make a DEAL.

  • Pastor Charlie

    Same old, same old! Republicrums, Demoncraps, Libertards, Socialslummers, Liars, Thieves and Polititians… ALL the same.

    Let’s do something different. Let’s actually go out and elect Christian, Patriotic Conservatives who understand that you shouldn’t spend money you don’t have. That understand that if they aren’t with us they are against us and so don’t feed them or send them money! That understand that if it’s ours, we shouldn’t give it away to whiners, or threateners!

    Crooks belong in prison, not D. C.; abortion is not a right, but murder, that homosexualality is a disgusting abomination and not “another life style” and that those who sell illegal drugs to anyone, but especially to children should be executed.