Heading into the election, Barack Obama seemed like a candidate who would support major increases in spending and a major government expansion.  In six short months, his administration has supported a $787 billion stimulus spending bill, a bailout of the auto industry, and a continuation of the Bush administration's misguided TARP scheme. 

     In the present, the administration and Congress are working hard on a healthcare bill that will likely cost well over $1 trillion, and an energy bill which will raise energy costs for consumers and businesses while we are experiencing a major recession.  Then, we have the unemployment rate, which is currently at 9.5%.  The President expects "... that we will probably continue to see unemployment tick up for several months."   Let's not forget that  we also have the deficit reaching $1 trillion for the first time, on its way to possibly reaching $2 trillion.

     If you think the present situation is bad, take a look at what is being proposed.  Let's start with the administration's idea to tackle housing:

NEW YORK, July 14 (Reuters) - U.S. government officials are weighing a plan that would let borrowers who have fallen behind on their mortgage payments avoid eviction by renting their homes instead, sources familiar with the administration's thinking said on Tuesday.

Under one idea being discussed, delinquent homeowners would surrender ownership of their homes but would continue to live in the property for several years, the sources told Reuters.

Officials are also considering whether the government should make mortgage payments on behalf of borrowers who cannot keep up with their home loans, tapping an unused portion of a $50 billion housing aid kitty.

As part of this plan, jobless borrowers might receive a housing stipend along with regular unemployment benefits, the sources said.


     As you might know, lenders are in the business of lending, not property management.  This legislation would require banks to own and manage properties they might not want, or be able to maintain without expanding, with little or no chance of profit.  In addition, we have the government making mortgage payments for those who "can't afford" their mortgages.  The winners in this plan are banks who made poor decisions, and irresponsible borrowers.  The losers?  Anyone who pays taxes and makes their mortgage payment on time.

     It seems like everyone is seeking a bailout: Financial institutions, the auto industry, borrowers, etc.  These bailouts are problematic, but are even worse since they reinforce a, "what about me" mentality.  The latest group to request government aid are minority broadcasters, who are lobbying the Treasury Department for assistance.  Who will be next?

     The next big issue is how to fund healthcare reform.  One idea being mentioned is a 5.4% surtax on people making more than $1 million per year.  Most people probably wouldn't care, since it affects wealthy people with substantial incomes, rather than "working people" (I guess people who earn a lot don't actually work for a living), but this is the wrong attitude.  It's another example of how the government is accelerating its reckless spending, with no regard for the deficit.

     Of course, this redistribution of wealth fits in perfectly with Barack Obama's economic philosophy: "From each according to his ability, to each according to his need."