Consensus Emerges To Let Deficit Rise

Monday, October 27, 2008, PM | Leave Comment

In the Sunday, Oct 19,2008, edition of New York Times online, there is an article about consensus emerges to let the deficit rise by Louis Uchitelle and Robert Pear. The government bailout for the banks is $250 billion in the coming weeks and another $150 billion has been proposed for the same.

Now most of the money come to the government via tax revenue – individuals/families and businesses. However, the economy is in a shamble and people are continuously facing job loss on a daily basis. More than 750,000 jobs have been lost so far this year, according to Yahoo personal-finance. People are selling stocks, quite a large number at capitol loss, the government is taking the brunt of the losses, chipping in. For all the analysis that I read, the IRS will collect less money for this year than last.

With two wars going on at a cost of over $10 billion a month, with the bailout of $400 billion to banks plus another few hundred billion dollars for investment institutions, I wonder where the money would come from.

A bit further, the article states declining economy swells outlays for unemployment insurance, food stamps and other federal aid. Democratic and Republican lawmakers alike have elected to pay the bill mainly by borrowing money rather than cutting spending or raising taxes. Get ready Sen. McCain and Sen. Obama. The next president will inherit a fiscal and economic mess of historic proportions.

Sometimes, the government and some institutions when given money like that, they act like teenagers. They live at home with their parents and whatever part time work they do, they get paid. So what the kids do, go and spend the money on things that don’t make sense to their parents. But they do it any way.

I believe in open, competitive markets. At the same time, there has to be some kind of rules and regulations for the public as well as private institutions. I read somewhere long ago. With a complete de-regulation, the rich would get richer and the poor would get poorer. It’s the rich that take advantage of such acts. The poor don’t have the time. Period.

What the American public ought to do is “take charge as parents” and put some rules and regulate those rules to their kids. I mean public and private institutions.

I came to the U.S. some 30 plus years ago. I became U.S. citizen in 1981. This is the first election, the 2008 Nov.4 election, that I think is a lot different than others during the last quarter of a century. The public must come out and vote on election day, no matter whom they will vote for.

In a Nutshell
No matter what happens, I am sure of one thing and that is “that people all over the world are willing, even eager, to lend to the United States, confident that the world’s most powerful nation will always repay on time, whatever its current difficulties.”

Read the article on New York Times online in full: consensus emerges to let the deficit rise by Louis Uchitelle and Robert Pear.

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