Debt Ceiling Part 1 – Living Within Our Means is “Completely Unnecessary”?
When the Federal Debt ceiling was raised the media portrayed it as an averted disaster that was “completely unnecessary” according to President Obama. In an effort to make my own determination about the consequences of the shutdown I went back to the source of the quote by President Obama to understand the context of the statement. The quote comes from a CBS News interview on October 9th and I’ve included it below for your viewing.
In the interview President Obama says the following with regards to the impacts of the shutdown:
“… Right off the bat you’ve got hundreds of thousands of people [federal workers] across the country who aren’t sure about their paychecks. That also has an economic impact, it means that the restaurants in Virginia, maybe they’re not getting as many customers because some of those federal workers are worried and holding back on spending. It means that businesses that provide services to the federal government, they’re not getting paid, so that may have an impact on their payroll. So the ripple effects from this, across the board, are particularly damaging for this area and Virginia. And that’s why what I’ve said repeatedly this is completely unnecessary. The reason we’re where we are right now, Speaker Boehner and House Republicans, thought that they could get leverage in budget negotiations or de-fund the Affordable Care Act, Obamacare, by taking us to the brink, and essentially trying to hold the entire US economy hostage. And what I’ve said is I’m happy to negotiate, and democrats have shown themselves happy to negotiate on any issue. But you can’t threaten to shut down the government as a means of getting leverage in negotiations. You’ve got to take that off the table and I think most people understand that.
If the President accepts it’s normal for federal workers, everyday people like you and me, to cut back on spending to live within their means shouldn’t we expect our government to exist within it’s financial means too?
Shutting the Federal Government down is a drastic action but who is to blame? The person saying “we aren’t living within our fiscal ability and it has to stop” or the person who keeps borrowing with no plan for the future?
My General Opinion of the Debt Ceiling Crisis
At the time of this posting the United Stated Federal Government has been shut down for 14 days. This posting is my critical thinking about the debt ceiling crisis.
In my opinion, the news media is filled with stories about which political party is (or isn’t) willing to negotiate about raising the debt ceiling and what could happen if the debt ceiling isn’t raised. Regardless of political affiliations and opinions of who is to blame please ask yourself these questions:
- Do you want defense for your state against foreign threats?
- Do you want protection of your personal liberties regardless of which state you live in?4
- Do you want adequate healthcare and social programs to help in times of trouble?
The answer to each of these questions is probably “Yes”. Most people would agree they are all good ideas. As a matter of fact the first two are already provided as a mandate of the United States’ Constitution. With these ideals in mind can this nation afford to use deficit spending to finance healthcare without putting our other priorities at risk? I don’t think so.
Healthcare is important, it must be accompanied by a fiscal plan to reduce debt and return our federal government to maintainable spending practices otherwise everything else the federal government stands for will be in continually jeopardy.
Legislation – if it tries to do everything it’ll probably not do anything
There is an old saying, “If you don’t stand for something you’ll fall for anything.” The saying comes to mind when I see this video. If a law has so many clauses that you can’t understand it then it probably can mean whatever you want it to mean. Is the nation any better when politicians make complicated and granular laws or simpler straightforward laws that can be enforced by judges, not politicians?
Sharing In Abraham Lincoln’s Concerns
The postage stamp picture above was on display at Arlington National Cemetery. The quote says:
“That government
of the people,
by the people,
for the people,
shall not perish
from the earth.”
-Abraham Lincoln
The quote comes from the Gettysburg Address which was given by Abraham Lincoln during a very dire time when civil war threatened to destroy the union. Today we don’t face civil war but I wonder if Lincoln wouldn’t be just as worried about the stability of the government as he was when those words were spoken.
As our national debt to gross national product continues to remain high with no decrease in sight I can’t help but wonder if history hasn’t repeated itself and the nation is in another precarious situation.
The nation has come a long way in the 147 years since these words were spoken which makes his concern even more important. If we slip from this precarious slope then the accomplishments and sacrifices of those before us will have been in vain. Our nation is a very small portion of the world’s population but we have weathered storms that larger nations haven’t overcome. Don’t agree with me? Read the constitution and the amendments to it (bill of rights) and decide for yourself.
“It is rather for us to be here dedicated to the great task remaining before us—that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion—that we here highly resolve that these dead shall not have died in vain—that this nation, under God, shall have a new birth of freedom—and that government of the people, by the people, for the people, shall not perish from the earth.” -Abraham Lincoln
Debt is the Money That Makes the Economy Function
If you buy or sell anything you should watch these videos to understand what it means on a global scale. The simple act of borrowing creates an exponential effect in the world These videos explain how banks create money out of nothing to get interest (income) from something that never existed. The summation of the process is an endless system that grows out of control exponentially. Unbelievable! Comments welcome.
The video is split into 5 segments due to YouTube limitations.
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