Spiraling National Debt

by Morris Inch⁽²⁾

It is striking that the president's new fiscal commission began its deliberation at a time the Greek economy has reached crisis proportions. As for the former, the spiraling of our national debt has been graphically described by select members of the commission as a tsunami, cancer, and insatiable shark. As for the latter, the Greek government has started slashing spending, and implementing austerity measures.

While the Bush administration was criticized for its lack of economic restraint, its deficit was modest when compared to that of the present administration. This would seem to suggest that we cannot simply attribute the current debt to ingrained habits, although this is no doubt a contributing factor.

"The path forward contains many difficult trade-offs and choices," Federal Reserve Chairman Ben Bernanke allows, "but postponing those choices and failing to put the nations' finances on a sustainable long-run trajectory would ultimately do great damage." In particular, he cautions against deferring a viable solution until some seemingly more acceptable time. The failure to act promptly compounds the problem, and makes a solution less feasible.

Two related observations arise in context of the commission's early deliberation. First, we cannot spend our way out of the impending economic disaster. Second, we cannot tax our way to recovery. Accordingly, the proposed values added tax could readily compound the problem-unless there are substantial trade-offs.

It remains to accomplish more with less. For instance, it has been suggested that we reduce the costs of our entitlement programs-such as social security and Medicare. This could seriously reduce the quality care persons receive in our society, providing there are no means found to compensate.

Moreover, it appears inappropriate to be expanding government at a time when we need to embrace austerity measures. On the one hand, we have schools reducing the size of their faculty; while on the other, government agencies proliferate.

Numerous procedural changes would significantly reduce our financial short-fall. For instance, while some defend ear-marks as a more suitable means of distributing public funds, they lend themselves to excess and special interests. The attachment of riders to bills pending is also subject to special interests and wasteful abuse.

While we cannot afford to assume an isolationist stance, this does not justify the heavy international burden we carry. Not only has this met with limited success, but drawn extensive criticism from abroad. It bears repeating, we must discover how to do more with less resources.

In conclusion, two facets of biblical teaching come to mind. Initially, the sage enjoins: "Go to the ant, you sluggard, consider its ways and be wise" (Prov. 6:6). This serves to cultivate industry. In this regard, Thomas Jefferson protested: "I think we have more machinery of government than is necessary, too many parasites living on the labor of the industrious."

Secondly, Jesus allowed: "Give and it will be given to you" (Luke 6:38). Consequently, inculcate generosity. Qualifications aside, a society that fosters these two compatible virtues is calculated to benefit as a result.

Article submitted Friday, May 07, 2010 & read 338 times.

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