Pacific Views

Bankrupting the Future

When Y2K dawned, there were a number of serious problems facing the world, yet, there was a sense that with some leadership and focus, perhaps these problems could be solved. After all, we were building up a surplus and it seemed we were starting to address some of those bigger problems such as global warming. The bridge to the 21st century had been well-laid and Americans felt the future held even better times.

Today all of that seems so optimistic and somewhat delusional. What we got instead of leadership was a gang of crooks that are doing everything they can to bankrupt our country and destroy the future for our children. This current government only believes in war, tax cuts and paying off their friends. They don't mind spending for death. It's just those social programs which they believe cause moral decay that they object to funding.

Every tax cut is designed to reduce the ability of our government to help ordinary citizens. Every dollar misspent on war-making is destroying our ability to meet the needs of those coming after us. Meanwhile dollars coming into the treasury are being sucked up by this boondoggle or that. Promote nuclear energy. Fund star wars. Raze the mountains for coal. Remove regulations that interfer with business. Nothing is sacrosant. Everything is on the auction block to the highest bidder, including the air we breathe and the water we drink.

Thursday the economic boosters were knocking themselves out with their thrilling news that the recovery was on its way. And, geez, the consumers were spending again. Gosh, it was Morning in America.

It is amazing how short these economic booms last these days. One day later and they are now saying that good times are on their way, but it's not quite so simple because, oh-oh, the job market isn't doing quite so well. But, the number of unemployed went down! It must be good news according to some.

Here in Portland we are beginning to see a pattern. Everytime the economy booms in DC we lose more jobs. Today we have a 8.8% unemployment rate. Bush's plan to punish the blue states is going extremely well.

What about that stimulus from federal spending and tax cuts? Just as the pundits on the East Coast were incapable of seeing the lies leading up to the war because they breathed in the fear nurtured to justify war on Iraq, today, they are flush with money from the massive spending for defense and the largess from the lobbyists swarming the capital. Washington believes the good times are back. They have a hard time understanding why anyone in the country would be unhappy with the current situation.

Stirling at It's Still The Economy points out, that the economic boom showing up in the is based on borrowing. So unless this is an investment, then we are stealing from the next generation who will be asked to pay for today's spending. (Thanks to To The Point for the pointer to this excellent post.)

The current economic regime is to borrow money, and then give it away. Instead of requiring that the US government get stock for its bailout of the major airlines, or treated the money as a loan, there were a series of outright grants. Huge welfare checks to keep the major airlines in business without any corresponding responsibility or accountability. This means that this stimulus, far from being Keynesian pump priming, is a direct trade of future economic activity for current economic activity, and further pumps up already inflated investment demand.

It can only be called a ripoff, when the money borrowed and spent today does nothing to build our capacity to prepare for the future. As Eisenhower warned:

Another factor in maintaining balance involves the element of time. As we peer into society's future, we -- you and I, and our government -- must avoid the impulse to live only for today, plundering, for our own ease and convenience, the precious resources of tomorrow. We cannot mortgage the material assets of our grandchildren without risking the loss also of their political and spiritual heritage. We want democracy to survive for all generations to come, not to become the insolvent phantom of tomorrow.

Today, our schools are being defunded, our health care system is close to collapsing, and much of our national treasure is being squandered. And we can thank Bushco for the vastly different future we face today.

BTW: Best excuse for why the economy is struggling goes to Bush who blamed the media for their incessant drumbeating for war last year.