To make matters worse, I get more breaking news across my Blackberry. The DOW has fallen over 100 points again due to continued debt ceiling stalemates (thank you very much Wall Street along with partner in crime D.C. Beltway) and durable goods orders are slipping again. The country consumes far more than it produces, has too many on welfare who aren’t paying into but receiving much of the Government’s spending, unemployment is at 9.2%, and U.S. GDP continues to sink into the negative.
To make matters worse, we are being spewed at by journalists such as Time Magazine’s Rana Foroohar that our concern with a runaway debt and the country’s hemorrhaging economy is foolish, unwarranted. And, if I’m not misinterpreting, Foroohar calls the proposed Balanced Budget Amendment (i.e., getting crazed Federal spending under control) “folksy politics” inferring that we Americans just don’t understand that in order to save the economy you have to borrow and spend still more. Really?! I live in Utah, own my own successful small business and still have a few clients but despite all of the borrowing and spending by the federal government, I wouldn’t describe things as getting better. But hey, that’s just folksy political me.
While Obama and his crew strategize on how to continue to keep the country in state of chaos, Foroohar supports the administrations unabashed spending spree by citing British economist Keynes’ theory as her premise for “no big deal, let’s raise the debt ceiling” and keep on spending. The Time’s reporter continues to condescend by pointing out macroeconomy versus microeconomy, explaining that families can improve by balancing budgets and saving but the Federal government unfortunately cannot.
Hmmm, maybe I am folksy at heart or maybe I am just a little bit more curious about how the American economy works than The Curious Capitalist (cited as a famous Dogar tribal member per Wikipedia). Last time I checked, Reagan and President Kennedy lowered taxes, deregulated markets, brought down the Soviet Union and guess what? The country thrived. Carter’s inflation nightmare dropped to 4% (this I know because I was in Europe at the time spending a strong American dollar). Federal surpluses that followed allowed President Clinton to finally balance the budget. Balancing the budget and paying down debt equals economic strength and power no matter how macro or micro, or how Democrat or Republican it may be.
Foroohar gets her last two digs in the final paragraphs: states have balanced-budget rules so the federal government should not in order to remain an economic stimulator (okay, really sighing right about now) and the final blow, the regurgitation of simple Keynesian wisdom: “If Enterprise is afoot, wealth accumulates, [whatever may be happening to thrift.]”
Unfortunately, what Foroohar lacks is not the ability to convey her journalistic superiority but the ability to see the forest through the trees: you can’t grow until you create an environment that fosters growth (cut taxes) and until you quit selling your soul for short-term fixes like some debt-hooked junkie. That means getting your house in order on behalf of all Americans. And yes, that includes the U.S. Capitol and The White House or D.C.’s Versailles which ever you prefer.
Forget the hoopla over the debt ceiling or balanced budget amendment, let them eat cake!
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