Debt on arrival

[Hayden Collins]

 

In the recent political brinksmanship about how to manage an unprecedented national debt, in the potshots being fired as diversionary tactics, and the business community’s lack of confidence showing in the extreme volatility of the stock market, we can see the results of current government policies – not only in the U.S. but in Europe as well.  Wherever you turn, you arrive in debt.

 

It’s obvious that what happens in the U.S. reflects what’s going on around the world, whether the President wants to admit it or not.  We have to lead because no one else will.  Socialistic countries don’t lead – they require leadership.  They are completely depending on a free market society somewhere else to provide leadership and consistency in a world economy.  Like it or not, the United States of America is that leader.

 

President Reagan’s economic programs achieved an unmatched growth of 17.2 million jobs during his presidency.  Yes he slowly raised taxes in a growing economy, however in order to get that ball rolling, he cut government, taxes and spending.  This program was very successful and is a good model to follow.  How can we adapt that model now?

 

In the face of our unprecedented financial obligations, it’s time to cut government, cut taxes and cut spending – on the order of $4 trillion by the end of this year. Now is not the time to grow government, it is time to get lean and mean.  No business that’s in trouble ever survives by adding problems during a crisis.  They get lean and mean in order to survive. 

 

Congressman Tip O’Neill said, “All politics is local.”  All economics is local, too.  In last week’s recall election in Wisconsin, we have seen the conservative values stand fast – and the conservative policies of Wisconsin are turning the state around.  The states are the economic proving grounds – the test subjects, if you will – in an economic experiment.  Those states that are doing well are the states that are not carrying debt; and those states which are not doing well are carrying phenomenal amounts of debt.

 

The new economic structure that will, that must develop out of our debt-ridden circumstances is going to reflect conservative values based on the positive results of states like Wisconsin.  You control your own economic future - saving, paying attention to your spending, and creating your own economic success – or failure.  There is opportunity in chaos, and we will have the opportunity to take advantage as individuals, and correct these problems as individuals. What is needed is to re-invent how our country and how its citizens view our financial choices in a globalized economy, and set a strong example.  A strong conservative example.

 

The U.S. has an amazing leadership opportunity, as so many other countries are also struggling with debt.  If we as a nation can find a workable path to greater economic stability, we will have found a path to more than just lowering our own taxes and those of our children, or for encouraging more private capital investment and reasonable rates of interest for businesses – we can set the example that this crisis calls for.  Reducing excessive government will allow free market opportunities to expand and produce the growth to serve the tax base. With a free market society in high gear, the socialized countries can also survive – but when the free market is in poor condition and the world economy slow downs, it impacts the growth of not only the free market but also the markets of socialized countries which demand its leadership for their own survival.    

 

Our government in the U.S. was not founded to provide its citizens with a path to happiness but to protect your right to pursue happiness. We should use that right to correct our own path, and not wait on government.  We have to cut the sacred cows – they’re no longer sacred.  We can’t afford them.  Pretty soon we’re going to have to eat the cow.

 

There is no time to wait – we have only a few months to cut government, cut taxes and cut spending or face a further demerit to our economic future.  In our communities, in our states, and in our message to our elected representatives in Washington, we must be relentless in demanding the departure of this debt.  Be About It.