Topic: government accountability
Is America Bankrupt? The end may be in sight to our borrow and spend policies. Does our country have enough time to turn course and reshape this bleak future?by JJJ
(Libertarian)
Friday, February 29, 2008
As David Walker stepped down from another presentation on our country's looming financial crisis, the audience stared in disbelief and bewilderment. The Comptroller General of the United States once again left a crowd in silence on Valentine's Day at the Annual AARP Board of Directors Public Policy Meeting. The equivalent of a modern day prophet, Walker has been telling us what has already been ominously stirring in the back of our minds. An end is coming to our borrow and spend policies of this last century.
Anyone who has spent any amount of time in various companies that have gone bankrupt know that when the accountants start disappearing, it's time to get out. David Walker is the equivalent of the accountant for the United States Federal Government. On the 15th of this month(February) he put in his resignation as Comptroller General. This is a 15-year term position that Walker began on November 9th of 1998 and ended early with this months resignation.
So just how much trouble is the United States in? It is hard to say. According to the "U.S. Financial Condition and Fiscal Future Briefing" released on January 3rd, 2008, every individual born in the U.S. owes $175,000 before the ink dries on their birth certificate. The total amount of future liabilities to Medicare and Social Security is 52.7 trillion. Compare that with the total household net worth in the United States of 58.6 trillion. When you get done adding in your state and local municipality obligations, as well as the federal debt and other federal obligations, there is nothing left.
So what does this mean for us? Currently we are sustaining our deficit government by borrowing money from foreign countries and individuals. Many have called this situation "unsustainable". What will happen when these foreign countries stop loaning our government time and require it to pay the bill? We would owe enormous taxes with only the ability to pay the interest, while receiving little or no government benefits and services. This would mean no more SUVs, big screen TVs, or computers with burnable DVDs. This would mean no more welfare, subsidized healthcare, or your annual local state fair. And you might as well forget the United States worldwide crusades. If what the Government Accountability Office is saying is correct, then we have some sobering issues to address.
Mr. Walker has said that the time to act is now. Spending will need to be cut and preparations made to address these issues before the problems amplify. When speaking about our elected officials in Washington, and the lobbyists that pursue them, David Walker said, "There are a lot of people who are invested in the status quo. There are a lot of people that are looking out for their own narrow, short-term interest, and there are not enough people looking out for the broader societal interest." "It's no wonder that the American people don't have any trust and confidence in Washington."
David Walker will go on to join the Peter G. Peterson Foundation as the president and CEO. This foundation has been established to address these issues by informing the American population and by influencing Washington to take on these challenges.
However, we are each responsible for the officials we elect and for informing our communities of the impending issues our nation faces and who we need to send to Washington to fix these issues.
From my analysis there are three big changes that will need to take place if we are to have any chance of reclaiming the America our ancestors knew.
First, healthcare costs need to be addressed. This cannot happen through more regulation or subsidizing healthcare. When you regulate something, the costs go up to meet the new regulations. And when you subsidize something, the costs increase because of an artificially higher demand for the good or service. So instead we need to remove government regulations in healthcare and also remove the current healthcare subsidies. This will cause the costs to decline along with the demand. Prescription drugs also need to be privatized again among seniors. Also, the FDA needs to be removed to reduce the research costs and widen pharmaceutical competition.
Second, our foreign policy needs to be addressed and reshaped. We cannot afford to be sending money overseas to be spent in foreign communities. We need those troops at home, spending their pay at home. We need those troops defending our borders so we don't have more illegal immigration.
Third, a whole slew of useless government departments need to be closed down so those workers can find civilian jobs and start contributing to society, and also so we can decrease the financial burden these departments impose on the federal budget.
If we act quickly, we might be able to see our economy once again competitive on the global market and see a brighter future for the red, white and blue. But if we ignore these issues and leave them festering in the back of our minds, then our worst nightmares might not compare to the future that awaits us and our children.
Did you like this article? If you did, Thumb It! 12 thumbs so far
2008 JJJ, all rights reserved.
Published: Friday, February 29, 2008
Last modified: Friday, February 29, 2008
The views expressed in this
article are those of JJJ only and do not represent
the views of Nolan Chart, LLC or its affiliates. JJJ is
solely responsible for the contents of this article and is not an
employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.
Great article. I think we are a the tipping point as a country and it greatly worries me that more are not concerned.
I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.
Posted By: Jeremiah Johnson
Date: 2008-02-29 08:12:10
Most certainly J. Thomas. As well as more dubious minds then Wilson. Any amount of examination of the history regarding our currency, debt, and laws will reveal that greed and power of a few began this and have perpetuated it's course.
Posted By: Walt Thiessen
Date: 2008-02-29 11:40:09
God bless David Walker. I only wish he'd stay as U.S. Comptroller. It's not often we get someone in government who actually does a good job. Still, I can't blame him for leaving. Who wants to stay on a sinking ship?
Mr. Johnson's quote from President Wilson was originally made in reference to his signing of the Federal Reserve Act of 1913, and there's no doubt that the Federal Reserve System contributes heavily to the creation and expansion of the national debt via programs such as MediBeware and Social Insecurity.
Want to comment on this
article? Leave your comment here. Your email address is
required to track your comment. However, we will neither
publish your email address nor distribute it to other
organizations or persons. The only reason we might use
it would be if we needed to contact you regarding your
comment. All comments are subject to our
terms of use policy.
2008 JJJ, all rights reserved.