in thinking prescriptively about the economy, is there not also a lesson from the current crisis that bills eventually come due, and that when you spend more than you take in, there is a day of reckoning?Hear, hear. I was uncomfortable with TARP, uncomfortable with talk of bailing out the auto industry, and I will continue to be uncomfortable with Obama's proposed American Recovery and Reinvestment Plan. Why? because we are literally spending trillions of dollars that we do not actually have.
That was the experience of those Americans who bought houses they could not afford, and who are now facing foreclosure or painful economic decisions. Shouldn't it also be the lesson of the U.S. government that we need to stop living beyond our means? It is unrealistic either to imagine "growing" out of a deficit of this projected magnitude or that there will be a return on the TARP expenditures anytime soon. The day of reckoning for these massive deficits will eventually come in the form of tax increases or printing more money, and the resulting weakened dollar and inflation that goes along with the latter option. In sum, the recovery will be running on even more borrowed money from foreign creditors and on borrowed time. Our savings and retirement accounts will know no long-term security as long as we carry such massive deficits and we are taking no steps to address them.
Yes, we have more borrowing power than most other countries on earth, but credit always comes with a price, and if we don't learn that now, our country could face severe consequences for it before too long.