Will gold benefit from growing concern over the Federal spending agenda?
*The Wall Street Journal, by Stephen Moore, September 23, 2009
“Our $2 Trillion Bridge to Nowhere
If you want to know why Americans are so fearful of a government takeover of the health-care system, take a look at the results of a new Gallup poll on government waste released Sept. 15. One question posed was: ‘Of every tax dollar that goes to Washington, D.C., how many cents of each dollar would you say is wasted?’ Gallup found that the mean response was 50 cents. With Uncle Sam spending just shy of $4 trillion this year, that means the public believes that $2 trillion is wasted.
In a separate poll released on Monday, Gallup found that nearly twice as many Americans believe that there is ‘too much government regulation of business and industry’ as believe there is ‘too little’ (45% to 24%).
Perhaps most significantly, in both of these polls Gallup found that skepticism about government’s effectiveness is the highest it’s been in decades. ‘Perceptions of federal waste were significantly lower 30 years ago than today,’ say the Gallup researchers. Even when Ronald Reagan was elected president in 1980 with the help of the antigovernment revolt of that era, Americans believed only 40 cents of every dollar was wasted, according to Gallup.
These results are in some ways surprising because voters just elected a president who promised expensive government expansion almost across the board—from health care to foreign aid to housing to energy policy. Mr. Obama was the first president elected since Lyndon Johnson who didn’t even pretend to want to cut the size of government.
Now there’s a powerful voter backlash against the Bush-Obama agenda of bailouts, stimulus plans and trillion dollar-plus deficits. The rage began with the bank bailouts last fall. It grew with the $787 billion stimulus bill, which was little more than a refill of the budgets of every left-wing program Democrats have wanted to throw money at for 40 years. The nearly $100 billion bailout of General Motors and Chrysler—some $300,000 for every auto job saved—was a bridge too far for debt-weary voters. When Mr. Obama then released his 10-year budget plan—which even he admitted would double the national debt with $9 trillion of new borrowing over the next decade—he was lighting a match in a munitions factory.”
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