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SENTRY JOURNAL » Ben Bernanke, Congress, Entitlement programs, House Budget Committee » Ben Bernanke: Things will come apart

Ben Bernanke: Things will come apart

On Wednesday Ben Bernanke told Congress at a hearing of the House Budget Committee that “things will come apart,” if Congress doesn’t get a handle on their spending and entitlement programs.  Welcome to the “tea” party Ben.  What do you think the Tea Party movement has been trying to tell you pinheads in Washington for over a year now?  They’ve been telling you, the President, and Congress to stop spending money you don’t have.  The national credit card is maxed out.

Chairman Bernanke painted a bleak outlook after being asked by the committee what would happen if Congress did not take action to head off the impending crisis brought on by unsustainable entitlement spending.

He said, “The entitlement programs are not self-funded,” they are unfunded liabilities. They are the single biggest component of spending going forward.”

So the two things we can glean from the above question and response is; 1. Congress realizes that predicament we’re in with unfunded liabilities and 2. They understand the dire consequence of not addressing it.

Bernanke continued; “There are various ways you could address this – you can restructure entitlement programs [or] you can cut other things – but at some point you need to address the overall budgetary situation. If you don’t, you’ll get a picture like this one [pointing to a graph showing a steep rise in interest rates and debt] where interest rates are rising and debt outstanding is growing exponentially. At that point, things will come apart.”

So he now floats the idea about restructuring entitlement programs, something that’s a must.  I was talking to a friend of mine at work today about this very same subject.  It was about Social Security and what we would need to do to wean ourselves off of the program.  After all the Social Security program is unsustainable like many of our welfare programs.  Now maybe our ideas weren’t the best but at least we were talking about the issue.  Now if we can only get our elected officials to do the same.

Finally Bernanke summed up his position by telling the committee that the best way for Congress to strengthen the economic recovery would be to stop borrowing and begin to get its fiscal balance sheets in order, saying that it was better policy to extend things like unemployment benefits and aid to states in a fiscally balanced way, rather than through continued borrowing.

You can read the entire article here.

The answers to our problems rest with limited government, self reliance, and individual responsibility.  We can pull out of this mess if we attack the problem now and understand that the fix is going to be painful.  It’s tough to wean yourself off something you have been dependent on for decades.  But tough or not, we must take the steps to do exactly that.

If we choose to pass the buck and ignore the problem then I have no doubt that Bernanke’s prediction about things to come will become a reality sooner than later.

Liberty forever, freedom for all!

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Filed under: Ben Bernanke, Congress, Entitlement programs, House Budget Committee

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Comments
  • LD Jackson June 11, 2010 at 6:01 AM

    It is encouraging to hear someone like Ben Bernanke talking like this. He does carry some weight in Washington, so if he can get their attention, maybe something good can come from this. I really liked how he pointed out the Tea Party and their message. It appears someone is listening. Now, if we can just get some action from them…….

  • Trestin Meacham June 11, 2010 at 7:58 AM

    I don't trust Bernanke I think he should be in jail right now. Never the less, he is right about this.

  • John Carey June 11, 2010 at 5:56 PM

    It is good to hear someone in Washington at least bring up the issue Larry.

  • John Carey June 11, 2010 at 5:59 PM

    I think Bernanke is a tool and nothing more Trestin. I am glad he has brought this issue up because at some point we need to have a serious conversation about entitlement programs.

  • Teresa June 11, 2010 at 8:09 PM

    It is good to hear someone in Washington bring up the issue. People need to be weaned off of government assistance, just like a baby needs to be weaned off of breastfeeding. No more quasi-nanny state. WE must return to the principles of our Founders.

  • John Carey June 11, 2010 at 8:39 PM

    Amen to that Teresa!