OK, so our nation is now in bankruptcy. How did we get here, what are the consequences, and what do we do about it?
American voters have voted for decades for the politicians who promised to be the biggest spender, and who promised to cater best to special and personal interests over the general interest and the interests of our children. It wasn't that the voters wanted bad government, it was just that good government wasn't a priority.
This voter trend had three major consequences:
• It bankrupted our entitlement programs. We spent the "trust" money on many people who paid little or nothing into these programs, buying re-election for politicians who supported this spending. It gave us a "structural deficit" that is crushing the economy. It broke our general fund budget. No amount of tax increases can erase this deficit.
• Every bad government proposal now on the table is a consequence of previous bad government policy by our politicians. Obamacare is a consequence of importing the poorest and neediest of legal and illegal immigrants, and of bankrupting our entitlement programs. Higher taxes are a consequence of crazy overspending. Stimulus spending is a consequence of government interfering in the housing industry -- pushing for too liberal lending to put people who couldn't really afford housing into houses, artificially stimulating the economy ... and resulting in a housing bubble that now threatens our economy (coupled with the structural deficit).
• The massive government spending has created an "entitlement" and socialist philosophy that now has followers exceeding 50 percent of the voters. Half of American voters now pay no federal income tax, and so, have no motivation to keep spending and taxing down. Over half of American voters perceive that they benefit from increased federal spending. This spending has created a constituency for the politician who promises to tax the productive class and give money to this rapidly growing voter group.
Chilkoot Charlie says, "we cheat the other guy and pass the savings on to you." That's what our politicians tell us. Fairbanks Libertarian Dick Randolph says, "you get what you pay for." By this, he means, the more government money you pour in to a program, the more people will modify their behavior to qualify for the program, and the more people "in need" you get.
Over the past 40 years, America has left the tenets that made it strong: personal responsibility, states' rights, liberty, limited government, free enterprise -- and created dependency through the great increase in government programs. We now have a majority of voters who will always vote for the biggest spender, who will "tax the other guy and pass the spending on to themselves."
With national bankruptcy staring us in the face, you would think Congress would finally develop a long-term plan to reduce spending and dependency, and take us back to our roots. So what's with this "cut spending" by a paltry $40 billion when our deficit is $1.5 trillion? The politicians are simply reflecting the will of the people. The polls show that the voters will still re-elect the politicians who promise to bring home more money to special interests.
There are few statesmen left in Congress. We won't see leadership from Congress. Only when Americans truly want good government, and a future for our nation and our children will reform and "fixes" occur. It will take a change in the American voter before politicians will make the changes that are needed, and the profile of the American voter does not suggest that change is soon coming.
The deficit and stimulus spending is presently postponing the "double dip" recession. But that spending cannot continue without running the printing presses and destroying the dollar and our economy. We cannot fix this until we deal with the structural deficit, and the fact is, that a majority of voters now believe they benefit from increased government.
Dave Cuddy has an economics degree, a masters in business, is a former Alaska state legislator and bank president. He now works in the film and real estate industries.
By DAVE CUDDY