…it’s the debt stupid.
I think it is symbolically fitting that in an effort to authorize another $700 billion of debt for a financial bail out, the Senate added another $150 billion in debt on top of that to fund tax cuts to increase the chance of passage in the House.
Putting aside for a minute my grudging support for this Wall Street bailout and my support for most of the tax incentives (Solar/Wind tax credits), I can’t help but think we as a society are totally clueless as we will sink from the wieght of our debt.
As a country we make very little anymore and now 2/3rds of our GDP is consumer spending, fueled by credit cards. With a negative savings rate, this can’t last and it maybe the next shoe to drop after the mortgage crisis.
Our national debt has doubled under Bush and sits north of $10 trillion. We’re still funding Iraq on the shoulders of the next generation.
Medicare is on an unsustainable cost curve that is ready to burst.
Oh ya, apparently lots of people own homes they can’t afford and speculators used these mortgagtes to lose even more money.
OK, the rant is over (only because it’s late, not for the lack of material), but my pessimism is going strong.
Our current standard of living depends on mountains of borrowed money and oceans of expensive, unsustainable oil. Our education and health care systems are mediocre at best compared with most of the developed world. We spend many times more on our military than any other country in the world. Most Americans have seen their real wages decline or stagnate even as more and more families need both parents to work outside the home.
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p>But the presidential candidates largely whistle past these truths. McCain, of course, is clueless; Obama knows the scoop but can’t really spell it out. Talking honestly about how big a mess we’re in and about the tough steps necessary to improve things will get you accused of “talking down America,” and of not being “optimistic,” in addition to pissing off the many constituencies whose oxen ought to be gored. See Carter, J., on the energy crisis three decades ago.
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p>If Barry does win (and he probably will), it will be interesting to see if he takes some risks to lead the country on critical issues where a big departure from the status quo is necessary for our long-term prosperity and security. I’m not optimistic either.
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p>I’m Publius and I approve this message.
It’s the spending, funded by debt.
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p>Don’t forget to add in the state borrowings, $3 Billion here. Pitiful that Massachusetts is crying fiscal crisis, when through August its enjoying the highest revenue in history.