The elephant in the room

In the wake of the longest government shutdown in American history, we should ask why weren’t more asking what triggers government shutdowns? — No, not the political gamesmanship which characterized this one and most others. That was on full display.

Why weren’t more focused upon spending? After all, threats of government shutdowns are the result of bumping up against federal spending “limits” and arguing about what political accommodations must be made in order to reach agreement on how to crash through the limit and spend even more…and more…and more.

We were focused upon it and wrote about it at the outset and, now that the shutdown is over, a return to that focus is in order. 

We detailed the history of spending limits. They’re in place for good reason. At some point in the past, there was an understanding that spending by the federal government should be limited. That’s why it takes a vote of Congress to pierce that artificial spending ceiling and go on record as being willing to do it. 

How many take notice or care? How seldom are politicians held accountable? Those questions may highlight an even bigger problem.

The elephant in the room — the dirty little secret that no one in Washington wants to talk about — is that America has a critical spending problem. 

That’s not the sole fault of either party. Both play the game. Oh, one may want to spend more extravagantly than the other and one may talk about it more and blame the other more, but there’s apparently something in “Potomac Fever” that creates a disconnect between the words “fiscal” and “responsibility”.

Many, once elected, see a large pot of money, which appears to belong to no one, and fancies it their job to spend it — and these days, they spend much more than the pot contains!

Debt: a problem worse than overspending

Spending is one thing. Theoretically, if you have the money, you can spend it, even if such binges are unwise. But worse than a spending problem, we have a gargantuan debt problem and it’s largely being ignored.

In this century, presidential administrations and congressional majorities of both parties share the responsibility. Not since Republican Speaker of the House Newt Gingrich and Democrat President Bill Clinton worked together, have we had a balanced federal budget. That was more than 30 years ago. 

In many states, balancing the budget is constitutionally required. It ought to be at the federal level, as well, but because it’s not, we’ve amassed a federal debt of more than $38 trillion, which means each citizen owes more than $118,000 and each household owes nearly $300,000! 

Interest on our federal debt now costs us more than $37,000 per second!

Our federal spending now easily surpasses our gross domestic product. You read that right—our government now spends considerably more, every year, that our society produces! No nation can continue on this course and survive economically.

What’s worse? Our appetite appears to only be for more.

Socialism looming?

Socialism is apparently the fashionable political philosophy of the day—maybe because we’re already far down that path. The frightening thing is that it would appear that many, in the younger generation, don’t realize the misery and collapse it leads to.

Socialist mayors have recently been elected in Seattle and New York City and Minneapolis escaped one by the thinnest of margins, only in order to retain its very liberal (but at least not avowed socialist) incumbent.

The idea of socialism sounds good, on the surface and it has some virtually guaranteed supporters. As the old adage goes, “those we rob from Peter to pay Paul can always count on the support of Paul”. Politicians promise more and more goodies to get more votes.

Former British Prime Minister Margaret Thatcher famously noted that the problem with socialism is that, “sooner or later, you run out of other people’s money.”

Inflation fans the flames

As government spends more than it has, prices increase and that only fans the flames of those who would plunge us into socialism.

Famed economist Milton Friedman said it best, noting that deficit spending leads to inflation—that it is a hidden tax which we pay, whether we realize it or not. Seeking socialism as a solution is a bit like noting that it’s a bit dark in the tiger’s mouth and plunging in, in search of light!

“Those who don’t learn the lessons of history are doomed to repeat it”

As that famous quote warns, overspending and increasing the money supply, as occurred, historically, and on steroids during COVID, was also rampant in 1930’s Germany, which led to unprecedented inflation, civil and political unrest and, ultimately, one of the most evil regimes in modern history.

The next time a potential government shutdown looms — as it will again in a couple of short months — rather than focusing only on how to avoid it by rapidly agreeing to spend more, our elected representatives should check their spending habits.

Only if we return to fiscal sanity will we have any hope of economic survival and future prosperity. It’s possible, but only if those we elect come to grips with the problem and actually begin to tighten the fiscal belt and begin working toward responsibility.

Our children and grandchildren deserve the promise of freedom and the blessings of liberty. Shame on us if we squander that future for them!