Lead, Follow, or Get Out of the Way

Our national debt has now climbed to its highest level since World War II spending; however it was an economic boom that brought us out of the Great Depression.  Compare this to our situation now; we have the high spending, high debts, with no economic boom in sight.[1]  What is causing our national debt to rise?

In July 2011, President Obama and Congress agreed to authorize another increase in the debt ceiling.[2]  Congress sets this debt limit and determines how much money the federal government can borrow.

What exactly are these increases paying for?  Tax money and increases in debt are used to: secure our borders, fund bureaucracies including EPA and HUD, make payments through “entitlement” programs including social security, Medicare, and guaranteed student loans.  Additionally, massive new spending was approved to stimulate the economy; remember Solyndra and Beacon Power?

In May 2011, the debt ceiling was at $14.3 trillion.[3]  A “deal” was made by Washington power brokers to add over $2 trillion to the debt ceiling.[4]  Since May 2011, there have been three installments in the debt “deal.”  The most recent was approved in January 2012 for $1.2 trillion, bringing the debt ceiling to a whopping $16.4 trillion.[5]  This is an increase of over 22%!  Is this record increase in the federal debt essential for the good of the country, or is it Washington recklessness?

The “deal” was that any increase in debt had to be offset by paying only some of it down in the future over the next 10 years.

A special commission was assigned to find spending cuts that will lead to a reduction of about $1 trillion in future spending.[6]  Part of the “deal” was that if Congress did not enact a deficit reduction plan by December 2011, automatic cuts in defense spending (50%) and social programs (50%) would be made.[7]

The federal government ran out of money and needed more.

So what did they do?  They authorized more money.

Where does the money come from?  It is borrowed.

Who assures the debt will be paid?  The American people do, including our children, who will someday own this debt.

Who did the White House and the Congress hold accountable for finding the future spending cuts?  They appointed a special commission, not Congress.

So what was the result of the special commission? They did not reach an agreement on spending cuts.[8]  They did no better than Congress, who appointed them!

The deck is looking stacked in one direction: Government debt is now at an all-time high water mark, and the boat is leaking.  We are sinking in debt, and Washington politicians are not taking the steps needed to fix the problem.

Do the American people have a right to challenge Washington politicians for leaving us in such a dangerous place with more debt?  Without a doubt, we do, but this is more of the same pattern.  Washington politicians used income taxes and government debt to finance Social Security and other new social programs in the 1930s.  The federal debt grew 15 times larger from 1930 through 1950 to $257 million![9]  Washington politicians convinced the American people that because of the Depression, the government can take care of the “welfare” of the people – but they cannot.

In reality, the government also took things away from us as a nation that are instinctive in all of us individually: We know we have the right to buy, sell, trade, and hopefully, make a profit.  Most importantly, they were intruding onto the ability to live within our own means for our own safety and security.  Then, and only then, can we look after the needs of family and those close by.

Being in charge of the purse strings is a critical responsibility.  “Let the good times roll,” is a shameful lack of that responsibility.  I am beginning to believe the phrase started in Washington.

The American people reduced credit card debt by 19% between September 2008 (the worst of the recession) and April 2011.[10]  Americans are tightening their belts.  Are Washington progressives, bureaucrats, and politicians doing the same?  It is sad to think it is unlikely they will.  The federal government cannot continue to make promises, spend other people’s money, and refuse to take action to reduce the federal budget.

It is time to send a message to the Washington “out of control” spenders: Lead, Follow, or Get Out of the Way.  We can all play a role in rebuilding the economy and shortening the purse strings by limiting control of Washington.

Start by contacting your congressman to make sure they vote to wisely cut government spending and give our economy a chance.  Then find and support the candidates who will hold the line on reduced government spending and a significant reform of entitlements. Get the word to your friends and neighbors on the mortgaging of your financial future.

Let’s give the power – economic power – back to the people.