For just shy of eight years now the United States has been economically hindered by the distorted interpretation of economist John Maynard Keynes’ twentieth century economic theory.
Application of Keynesian economics extended the Great Depression longer than necessary as it has for the recent recession.
Classic economic theory suggests that world and national economies experience rises and falls. Periods of stagnation can be moderated with reasoned spending and by controlling variable expenses. Keynesian economic theory, on the other hand, advocates that increased government spending in times of downturn spurs the economy resulting in shorter downswings. The flawed theory doesn’t work in a personal or household situation and it most certainly doesn’t work for individual states or nations. In fact, the larger the entity and economic platform the more in-congruent the premise becomes.
Take the economic basis to the personal level for a moment. If you’re out of work, out of savings and your unemployment ends, your only legal choices are to live off your credit cards or borrow from friends and family to pay your bills. When you begin borrowing to continue spending more than you can repay, this is called deficit spending. Increasing that spending is simply beyond foolish. To continue this path without obtaining gainful employment or other legitimate income sources, severely limits your choices. When debt increases and money shuffling through borrowing and making minimum payments is no longer an option, selling your assets and bankruptcy become reality.
Governments have opportunities that individuals do not. They can print more money to cover their debt. You cannot. However, when the government prints more money, each one of your dollars, each one of your pennies is worth less. Therefore. it costs you proportionately more for groceries, clothing, gasoline, heating and cooling…everything. They can take more of your money in the form of taxes, levies, tolls, etc. You, on the other hand, have to make do with less or borrow more without concern for repayment.
For eight years now we have had a government that spends without concern for repaying the lenders. Congress is complicit, if not primarily responsible for repressing economic growth by allowing this to happen. Each bill passed with government spending appropriations only stagnates growth, in-debts each American and prevents GDP increases.
It’s time to free the reins and allow the private sector to flourish.
It shouldn’t matter if those at the top also benefit. Let them elevate their status as long as the rest of us increase ours!
Let’s treat the national economy as if it were a for-profit business we care about. Let’s stop the useless spending on studies to justify more spending. Let’s stop the deficit spending and begin reducing the debt. Let’s make government (agencies and departments, teachers, public works employees and everybody receiving taxpayer funded paychecks) accountable for performance. Let’s make public wages and salaries merit based. Let’s downsize (or rightsize) the government and allow those non-critical employees an opportunity to contribute to the economy in the private sector rather than burdening it.
LET’S MAKE AMERICA GREAT AGAIN!