America's Fate: the Titanic's.
David Walker, U.S. Comptroller, gave a speech recently which was re-aired on C-Span this evening. It was the most important speech made in the last 5 years and will remain the most important speech for America's future for decades. America is on a path to depression and bankruptcy, and the politicians to date, refuse to act to prevent it. The essence of his message was simple. America must make radical changes today to its future financial situation if it is to have an economic future with quality and dignity for its citizens.
The politicians, in whose hands lie our economic future, have so far refused to look at their legislation beyond their next reelection. In fact, many politicians who move for measures to save our country will lose their reelection because as Mr. Walker said, the public has not been educated to accept responsibility for the viability of our nation's future.
Some facts and figures. The present value of dollars saved (amount necessary to fund future obligations) needed to fund Medicare in 2003 when the prescription drug plan was passed was 8.7 trillion dollars. But not one dollar was saved to earn interest to pay for present or future benefits of Medicare. Health care entitlement spending is growing far faster than any economic growth the U.S. has seen in its best decades of growth. With foreign central banks owning near half of our national debt, U.S. leadership in the world will probably be compromised by one or more of those nation's threat to withdraw their treasury loans to us. The potential of a huge interest rate spike grows as a result. And a future steep interest rate spike will compound the severity of our future economic plight.
As the Comptroller, Mr. Walker said, when his Grandson was born on St. Patricks day, the newborn began crying, possibly at the fact that on his birthday he inherited over $150,000 in debt to be paid
from his future earnings, and that number will grow each day he is alive. Mr. Walker said, as many think tanks, conservative and liberal, have been saying for years now, it is not possible to grow the economy sufficiently to deal with our growing debt obligations. We are way beyond that now. He said anyone who thinks we can grow the economy to solve these problems simply does not understand math.
The bottom line I took from his speech is this. If you can acquire great wealth over the next 20 to 30 years, do it. You'll need it for insulation from the terrible decline in quality of life in America that lies ahead. If you can't amass great wealth, consider raising your children in another country whose economic future is not a sinking ship like that of the United States. The great American experiment is failing, and it is failing because politicians are selling our economic tomorrows for reelection votes today. It is called political and financial greed, ladies and gentleman, and of the worst kind. For our politicians took an oath to protect and defend our nation, present and future. And they have been breaking that oath for years and we have been rewarding them with reelection at the rate of 94 to 97% of all incumbents running. Their political greed and our political ignorance are the ice berg that will sink this Titanic.
Mr. Walker believes it is not too late to steer away before the ice berg is upon us. I have my doubts, but, I am still an American, and thus, it is my responsibility to relate Mr. Walker's warnings and plead with all who read this: vote for a challenger this year and against the incumbents who will sink our, and our children's, future if we allow them. For all the facts and figures and points made by Mr. Walker, go to this page of the Government Accountability Office.
Comments
Now, I'm depressed!
Posted by: Stephanie Crist | April 12, 2006 8:40 PM
I get called a doomsdayer
First of all, I do not know the future.
I believe there is a real potential for an economic meltdown.
If a handful of things continue on the same path, I am confident an economic meltdown will happen, and few would probably disagree with that.
That is sufficient reason for any prudent person to be concerned.
For one thing, are we smart enough to know when we are past the point of no return?
I don't think so, since we still have recessions every 2 to 11 years for the last 46 years. And then there was the Great Depression of 1929.
At the moment, we are definitely on the path to ruin.
If we stay on this fiscally irresponsible path, there will be an economic meltdown.
The path, first, must change, and only then may some, who have valid concerns, justifiably be quelled.
Until then, Americans have a right (as always) and the justification to be concerned and question government.
Some say, predicting a depression is doomsdayish.
That's a bit extreme.
When I think of doomsdayish, I think of s 20 mile wide asteriod impacted Earth.
Also, some wanna-be economists like to quote low interest rates, low inflation rates, and low unemployment rates, as if that is the only yardstick with which to measure the health of the economy.
But, that is not the whole picture.
There are many factors of equal importance, and lots of less important issues, when combined, are as important as any of the most pressing problems.
But, whether a depression occurs or not is not the only issue.
Even if there is no depression, there are important issues stemming from our fiscal irresponsibility, such as:
A recession and/or a depression will occur someday.
It is not a matter of if.
It is only a matter of when.
Are we making recovery from the next recession (or depression) easier ? No!
Are we being fair to future generations ? No!
Are we being responsible ? No!
Are we invincible ? No!
If we have a good monetary system, why is destabilizing inflation always present ?
Do we have a good monetary system ? No!
Is there room for considerable improvement ? Yes!
Is government irresponsible ? Yes!
The possibility of a recession/depression should be neither played down, nor overstated.
The possibility of a recession/depression is real, so people should not be lured into a false sense of security by those that say it can't happen.
The problem with the doomsdayers and the rose-colored-glasses-folk, neither one of us can really win the argument.
I prefer to err on the side of caution and preparedness, but not to the point that it stiffles growth and progress.
What I see happening in D.C. does not even remotely resemble responsible management or behavior, which is why many people are fed up.
Hopefully, coming elections may prove it how fed-up.
Posted by: d.a.n | April 15, 2006 5:51 PM
Responsible spending, is that so much to ask of our government? I mean, we have to do it... So why don't we demand they follow the same rules? It's time for change!
Posted by: Stephanie Crist | April 16, 2006 10:44 PM