A raging debate is underway among politicians and voters as to whether government spending should be cut. I believe that a good debate helps the understanding of a situation and contributes to making better choices. In this case however, the debate is sadly futile. Even if those opposed to spending cuts succeed in swaying a majority of voters and elected officials, it does not mean there will not be sizeable cuts to government programs at some point.
This debate has already been resolved by forty plus years of living beyond our means. Since 1970, there have only been four years in which our federal government did not run a deficit. Practically every entitlement program has cost much more than anticipated. Social Security and Medicare have been underfunded, as have other government pensions. Our country has spent $16 trillion on a war on poverty, yet one sixth of our population is still in poverty or receiving assistance. The federal government has grown so much that non-defense, non-entitlement spending exceeded all personal income tax revenue in 2010. The federal government now has a net debt of $14 trillion, plus much, much more in unfunded liabilities. Government projections show the debt and related interest expense only growing over time.
How did the country get in such a poor financial situation? Because our elected officials gave the voters what they wanted, and what they wanted was something for nothing. And because there have always been investors willing to lend our government money. The representatives we re-elected every year chose to borrow money for “entitlements” and countless other dubious government programs, and left it to future generations to worry about the debt. They made promises that couldn’t be kept and left us an unsustainable mess. The President’s Debt Commission confirmed this statement.
As an adherent to the school of economic thought that believes money doesn’t grow on trees, I know we can’t continue to consume more than we produce. Are you willing to bet that there will always be investors willing to lend our debt ridden government all the money it wants? Do you really think our country will produce more goods and services if taxes are raised? Or if printing money brings about the expected inflationary spiral? Cutting government spending will happen either by choice or by necessity. Countries in Europe are in the same situation, and they are now making drastic cuts to their entitlement programs. Unbelievably, Democrats are not taking any steps to reduce spending.
Every dollar we spend now on programs for able working people is one less dollar we’ll have in the future for the truly needy. Is that OK with you? Is that OK with you supposedly compassionate liberals? I believe that the Republicans should focus on this argument in the 2012 elections. It wouldn’t hurt to also mention that every dollar spent on pork and special interests now is one less dollar available in the future for Social Security and Medicare.
It’s time to point out which is the truly compassionate side in the upcoming election.