The Great American Sell-Out

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U.S. Capitol

U.S. Capitol (Photo credit: afagen)

Both political parties are selling out the American people, and many Americans are quite happy with that. The budget deal included some tax increases, but those are not as much of a concern as a refusal to cut spending. The same massive deficit spending characteristic of the Bush 2 administration and accelerated beyond anything the country has seen under Mr. Obama will sink the children and grandchildren of Americans. The Republican Party does not have the courage to support massive spending cuts because they are more concerned with staying in power than doing the right thing.

Their fear may be justified. Americans showed that they would support someone who kept bringing in the “benefit” dollars–it is the typical attitude of most (and I mean to say “most”) contemporary Americans: “What’s in it for me?” As if that attitude is not bad enough, most Americans have the view that “I want from the government what helps me and to hell with my children and grandchildren.” Massive deficit spending cannot be sustained long-term–that is basic economics which anyone but an academic can understand. The problem is not as much political ideology as it is old fashioned selfishness. As Americans retreat into their individual worlds, the fate of their children (if they have them) becomes immaterial to their own lust for “free stuff.” Of course there is no “free stuff” that the government gives the people–that money comes from taxes. The United States sells treasury bonds to China and Japan (its main customers) which are only as good as long as the United States can pay up. So far it has, and billions of taxpayer dollars have paid the interest in the national debt. Printing more money to pay off higher deficits will only lessen the dollar’s value.

Apocalyptic books are popular these days, as is speculation about apocalyptic scenarios in real life. Although I am not one of those who store barrels of grain in my house, I understand the concern. Congress and the president will not stop massive federal spending, and when the day of reckoning comes (through China calling us on our debt, a massive loss of value of the dollar, or some other deficit-related catastrophe), it will not be pretty. The 2007 recession (which continues today despite what the mainstream media with its Obama-worship says) will look like child’s play. Now ideological liberals may think that’s a good thing since income distribution will be leveled out. To a liberal ideologue, it would not matter if the United States becomes a third world country. I do not believe most people in Congress want that, but their refusal to discipline themselves is going to damn the country to economic disaster. No money can be spent without the House of Representative’s approval. People in the House need to take their fiduciary responsibility to be good stewards seriously. Conservatives need to vote people into Congress who mean it when they call for federal spending cuts. Those in Congress who refuse to accept fiscal responsibility should be voted out.

I am doubtful that will happen–it seems that most Americans’ characters have been corrupted regarding fiscal responsibility by their own greed and selfishness, by their wanting something for nothing. The American people are being sold out, and only a few voices “crying in the wilderness” speak against the sellout. Ultimately, republics tend to disintegrate by their own hands. The hands of most Americans are wrapped around the fiscal throat of the United States, and they refuse to let go. Sadly, amputation via economic collapse may be the only way to teach them hard lessons about economic reality.

The Failure of the Welfare/Warfare State

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Franklin Roosevelt IMG_4680

Image by OZinOH via Flickr

In the future the United States will not be the country it once was–thank God. The U.S. will not have the money to keep its empire, and like all empires, it will lose its client states such as Iraq and Afghanistan. If we’re lucky, U.S. troops will also be withdrawn from South Korea and from Europe. The utopian Wilsonian idea that the United States has the duty to “spread democracy to the world” will hopefully be laid to rest. The military-industrial complex, with its drain on resources and its support for continual warfare may fade away, hopefully to engage in manufacturing more than instruments used to kill other human beings.

Even if the empire falls, the money saved will not be nearly enough to balance the budget or stop high deficits. The welfare state, developed during the massive New Deal programs designed to ease the Depression (whether they did or whether they prolonged the Depression is a matter of legitimate debate), and vastly expanded under Lyndon Johnson, will have to make deep cuts in its programs. It may be too late to avoid social chaos. Years of making people dependent on the government have contributed to large numbers of individuals who take advantage of the system and do not attempt to get a job. Those who do try to work quickly realize that welfare leaves their families better off than a job–even a job that pays significantly more than minimum wage. Although there are many exceptions, there are also many people in the underclass whose behavior is morally lacking. Promiscuity, drug use, drug dealing, a failure of fathers to care for children–all are the products of the welfare state, moral relativism, the decline of the family, and the decline of religion. If the federal welfare state is dismantled, there may be social chaos for a while, but hopefully the dismantling would force people out of the dependence on government mindset and encourage them to go to school, go to work, and contribute to the American economy, both monetarily and in the old sense of the word “economics,” oikomounia, the social economy that is part of every household. When the household is run well, this helps the overall economy by providing productive workers to the workforce, and it helps the social and political economy by providing virtuous people to contribute to society’s good.

There are no guarantees. But the United States may default on its debt if current spending levels are not radically lowered That could lead to a Depression and to violence in the streets. A firm hand in dealing with phenomena such as flash mobs should restore a measure of social order, although it will take decades to expunge the harm of the New Deal and of The Great Society. These systems have helped undermine the basis on which republican government can be run. People who demand “bread and circuses” from the government seldom make good citizens.

Welfare is a necessity is some cases when there is no family or friends to help someone who is having a difficult economic time. Its allocation by government should remain, at the broadest, at the state level. The United States has become too large to effectively govern, and it may be in the future that at least some of the states will be independent or have more limited autonomy from the federal government. Local resources can be used to help those locally in need. Then the United States should have policies that encourage Americans to manufacture items in this country. If more manufacturing comes, this would ease the burden on society by giving jobs to those previously were not able to find work.

Entitlements of every kind must be cut. The U.S. has no other choice. Pork barrel projects must cease. If the president refuses to have fiscal discipline due to his support of the welfare/warfare state, someone should point this out. Cursing out the Tea Party, as Maxine Waters did, reveals her ignorance of economics–that the United States must get its fiscal house in order, balance the budget, and use any surplus to help to pay the national debt. If fiscal responsibility does not happen, any recognizable U. S. may quickly succumb to the resulting economic chaos.