Wednesday, June 30, 2010

Soaring National Debt Blame Game

The Congressional Budget Office has said that the federal debt will represent 62% of the nation's economy by the end of this year, the highest percentage since just after World War II. Both parties are to blame.

G. W. Bush, who should have known better, decided that spending billions and billions on foreign wars, growing the federal bureaucracy for security purposes, and providing an unfunded senior medication entitlement program, among others, were in the best interest of the country.

Obama decided that we need to spend and spend and spend our way out recession without addressing the fundamentals of economics (and failed Keynesian economics does not count). Add to that the realization or threat thereof of 50 years worth of liberal government programs from massive health care, financial and energy reforms to huge financial, auto and mortgage bailouts. What makes matters worse is that we are missing the foundations for real economic growth.

Without hope for a financial return after a monetary investment, there are not enough individuals or businesses willing to take the necessary business risks to actually build new product, drive new demand and create new jobs.

One can make the case that G. W. Bush was bad and Obama is worse. But the bottom line is that almost all our political leaders have let us down. We voters failed ourselves by continuing to nominate and elect economic dolts for the presidency and governorships and for the federal and state legislatures. These people are more concerned about their own images and power than doing what is in the best interests of the nation or states.

Why we still continue to tell ourselves that this nation's economy will rebound is beyond me. The fundamentals of sound fiscal and monetary policies are gone. Government has gotten too big and the debt too large. It is a house of cards. It cannot continue indefinitely. It is bound to all come crumbling down. I wish I were more optimistic. Just give me a reason, just a little one...

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