Thursday, January 14, 2010

NATIONAL BELT TIGHTENING

Years ago when I was in high school, I had a conversation with a friend who seemed to know more about economics than I did. When I voiced complaint that the Government's new budget showed it running at a deficit, he explained to me why that was fine, even beneficial, to our country. I did not understand it then and I do not understand it now.

First, it is not a Government deficit. It is a people deficit, our deficit. The Government is not an entity with money of its own. It is the framework we have set up to handle certain of our affairs. It is a conduit, getting "its" money from us. So, when the Government goes into debt, it puts us into debt. You and me.

Second, one way or the other, that debt must be paid, generally by taxes or by the printing of new money which devalues the money we now have. I resist using these infrequently heard words, but it seems patently clear to me that it is both "logical" and "fair" that monies spent be obtained from those who are choosing via their representatives to spend it...us. Not our children or grandchildren, but us!

Yes, to be sure, future generations may benefit from what we do today, and I can accept that reasoning if the deficit is minor. But when the deficit exceeds $12,000,000,000,000...or $35,000 per person in America...which, with new welfare and benefit programs being installed, will continue to grow...it will create a bondage on future generations to pay it off that is unacceptable in a free country. Further, the unprecedented size of the debt will significantly and negatively impact their lives.

This week's earthquake disaster in Haiti is a monumental tragedy. It evokes a natural humanitarian desire to help. But the U.S.Government has no funds and it is not within its Constitutional authority to use funds, even if it had them, to help the citizens of other countries. Our Government's sole responsibility is the welfare of the American people. Free independent Americans may, of course, voluntarily charitably contribute all they wish. The U. S. can certainly aid in the situation by flying in donated food and supplies, medical personnel, and evacuating wounded to neighboring hospitals, etc.

When election time comes around, we voters ought remember who strapped the packs onto our children's backs.

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