The Coming Contraction
By Dr. Robert R. Owens
The party’s over and it’s time to pay the bill. Our government has been on a spending binge for as long as I can remember. With Clinton and Newt’s slight-of-hand accounting back in the late 90s notwithstanding, which wouldn’t withstand the level of scrutiny we give a tab at our local burger joint, there have been yearly deficits every year since I was born back in the 40s. The debt piled up to a record amount under Bush the Younger, and under Obama it has sky rocketed to the point where people have actually begun to notice that the emperor has no clothes.
It isn’t that our nation is broke since our assets still outweigh our debt, but who wants to sell Yellowstone to satisfy the Chinese? It isn’t just our government who has buried us buying $640 toilet seats, $436 hammers, or a $797,400 outhouse. All of us have had an apple out of that sack. We have pushed our personal credit to the max, our plastic to the limit, and our “Gotta have it now” culture to the breaking point. It isn’t just the 51% who pay no federal taxes but seem to have an insatiable appetite for federal services that are to blame. Those of us who make enough to merit a tax target on our backs have also drunk deep from the government trough. Social Security, Medicare, disaster relief, and student loans have added billions if not trillions to the national debt transferring money to the middle class.