The Debt Limit and the Abyss
This is an open letter to any politician and citizen who is concerned about our people and our nation:
Perhaps the most important issue facing our nation is the national debt. Our national debt now represents approximately 100% of our gross national product (more if you count the unfunded liabilities of Social Security and Medicare). There are only three proposed ways out of this debt crises and two are a fool’s errand (so, in reality, there is only one workable way out). The first proposed way would be to increase taxes. This is the first fool’s errand as this will cause the problem to get worse. Increased taxes will cause the economy to contract and the amount of tax revenue to actually decrease over time. Continuing to follow this course with even higher taxes will lead to a “death spiral” of increased taxation. The second proposed way out would be to “monetize the debt” (print more money) and inflate our way out. This, however, is a hidden tax on everyone that holds dollars. It hits the poorest of our citizens the hardest and will decimate the middle class (anyone that remembers the 1970’s and the Carter years can attest to this). In addition, this may precipitate a debt crisis as nations (such as China) that hold our debt and dollars dump them in favor of stronger currencies. So, again this method is a fool’s errand. The only method that will actually get us out of this crisis without inflicting untold economic pain and suffering on our people is to allow the economy to grow. Notice I did not say “to grow the economy.” No one in Washington, D.C. has the power “to grow the economy” even one bit. They do however have the power “to allow” the economy to grow. Growing the economy is up to the more than 300 million people who don’t live in Washington, D.C. But those in Washington, D.C. do have the power to get out of the way and set the conditions for economic growth. Such favorable conditions for economic growth would include decreasing federal spending (balancing the federal budget by cutting spending to the bone), reducing regulations on everything (we could start by repealing at least 90% of the Code of Federal Regulations, abolishing entire departments of the federal government, repealing Obamacare, and stopping the Federal Reserve from destroying the dollar by running the printing presses. If we do these things and do them now, we have a chance to save this great nation. If we do not do these things, then the best days of the United States of America and her proud citizens are behind us.
We must start now. I urge every Congressman and Senator to vote “NO” on raising the debt ceiling. Force the federal government to live within its means. Otherwise, our children and grandchildren will rightly curse us for squandering their future.
If you agree with the above, feel free to copy it and send it to your Congressman and Senators.