So Much Owed by So Many

How on earth can one country spend $5 trillion dollars it doesn’t have in just a bit over three years and not have much to show for it? Fair question we’d say. That’s a lot of dough in anyone’s book. No country; heck no continent; no known universe has ever spent so much in so little time and had so little to show for it. 

Do you remember the tales about the Battle of Britain when the Nazis controlled Europe and were planning Operation Barbarossa against Russia and they sent their Luftwaffe and missiles to destroy England and the brave RAF, Royal Air Force, took on the mission of battling the hun back; fighting day and night against overwhelming odds to keep their island out of the clutches of the murderous Germanic war machine?  Do you remember the words Churchill spoke to describe the RAF efforts?  We do.  Here they are, “Never in the field of human conflict was so much owed by so many to so few.”

Never in the field of human conflict was so much owed by so many to so few.

We are tempted to make a cheap distortion of those words to describe the debt or how much is owed by the United States. But, we dare not, or as our long gone Uncle would have said, “We dassn’t distort the profound meaning of those noble words” by tainting them with any mention in the same paragraph of America’s profound fiscal promiscuity.


So, we will just cite the facts.

• One year before George W. Bush left office, January 20, 2008, the total debt of the United States was: $9.189 trillion
• Three years and two months later, the debt of the United States is $14.238 trillion
  
• An increase of $5.049 trillion. In thirty eight months!


• We repeat.  An increase of $5.049 trillion.  38 months.

There are many reasons why this expenditure has nothing to show for it in terms of good jobs; rising exports; a strong and growing economy and the deep, internal sense within all of us that comes from hard work, sacrifice and frugality. If you read these pages you know the reasons. We revisit the reasons quickly.

 1. This nation’s economic problems are the consequence of bubbles and non productive costs created by government spending; government programs, rules, laws and countless burdens placed on every form of wealth creation and jobs producing economic growth. You don’t solve these problems by having your government borrow more to create demand. You cure the problem by eliminating the burdens on the economy.


2. Our economic problems are the confluence of two significant and converging situations. One internal. One external.


3. Internal: as describe above, we have chosen the path of self indulgence, protection and political corruption between elected and hired officials and special interests benefiting from their governance. Do we have the political, economic and financial will to break this pattern? Several states are working against all odds to do so. You have seen the turmoil that even minor changes bring from benefiting special interest groups and the politicians and bureaucrats who feed off the burdens placed on our economy.


4. External: there is a large and growing group of people in the world who are only too happy to work hard to create a better life for themselves and their children. And they are not anywhere near the stage of development where they view their self interest as more important than the rising standard of living they are experiencing. These competitors are growing. They will become even more productive and more efficient.


So, what to do? Spending has nothing to do with it. Anymore than spending was what the British people needed in 1940.


It is will. It is focus. It is determination. It is the leadership. We are only seeing smattering of these corrective forces in several of our states. We are seeing none of it in Washington DC.  Nada in Washington.


Here is what your president said after the two parties agreed a few days ago to a cosmetic “budget” deal to keep government open: “Like any worthwhile compromise, both sides had to make tough decisions and give ground on issues that were important to them," Obama said before cameras in the White House Blue Room as he acknowledged some of the cuts agreed to would be painful, with certain programs cut back and other projects encountering delays. "But beginning to live within our means is the only way to protect those investments that will help America compete for new jobs," he said.


Readers, this statement is utter nonsense. The expected deficit this year is $1.5 trillion on top of the $5 trillion noted above. Tough decisions? Cuts agreed to would be painful? Beginning to live within our means? Help America to compete for new jobs? Absolute, utter garbage!!


Mythology is not nobility. Rhetoric is no substitute for action. Can we reach back to the strength of the words of our own founders and search inside ourselves to make the commitment to demand leaders, not politicians, who will stop spending and start rebuilding our economic foundation? We remind you of the closing words of one of the greatest efforts mankind has formed to improve itself, “And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.


No one is being asked to pledge their lives. No one is being asked to pledge their fortunes or their honor. Just a combination of government spending eliminations, not reductions, and some additional taxes from the higher end.


Obama cannot lead. He neither sees the problem nor has the experience to recognize the solution. He is the wrong man for this time.  We are seeing a few leaders in state capitols with the vision and the experience to make the needed changes. They are under considerable attack from the forces that prefer rhetoric and mythology to avoid problem solving and leadership.


We must support those few who have the will to challenge the many who burden the economy.  We need a few more good leaders.  We desperately need one or two in Washington.  Real leaders are avoiding Washington the same way pretend leaders are avoiding fiscal responsibility.  Where are the leaders?