If it isn't one thing, it's another.
The national financial meltdown was addressed with record federal spending. At the same time, the slowed and faltering U.S. economy has meant fewer tax dollars. The result: an even higher federal debt and pressure on Washington to raise taxes. Unless, of course, the economy kicks back in.
No one wants to talk about increasing taxes. It's a political taboo.
But the nation can ill afford a disconnect from fiscal responsibility. Eventually, we will have to pay our bills.
The corporate bailouts and the stimulus package may have prevented the nation from experiencing another extremely painful national depression. It's one of those things we will never know, and only history will be in the position to finally judge the strategies taken by Congress and Presidents Bush and Obama. The nation is in the situation defined as "what's done is done."
Here's a revelation:Raising taxes does not stimulate economic growth.
Until the economy makes some reasonable progress nationally, efforts to get the U.S. government's financial house in order will get little traction. Thoughts of a balanced federal budget are now pure fantasy. (North Dakotans might be feeling smug about their balanced state budget, but it might be good to remember that state lawmakers, constitutionally, have no choice.)
Halting the nation's economic slide and fueling a strong recovery are critical. Right now, they overshadow concerns about deficits and debt, but eventually, that too will become the focus of the national interest.
While the numbers here are important - federal tax receipts are expected to drop 18 percent this year - we would be wise to remember the meltdown, government's response and the hope for recovery are all about people. Taxes are about people. Government programs are about people. Economic and fiscal policy are about people. The issues at stake here affect young and old, single people and families, white- and blue-collar workers, and people of every political persuasion. It's serous business for people everywhere.
It's why it's so important for policymakers and elected officials to stay connected, keeping in touch with citizens who feel the results of actions in Washington, for good or ill. It's why we have to be frank in our discussion of promise and policy.
What's going on with the economy in the United States today isn't a game. It's serious business that affects people's lives.
Posted in Editorial on Wednesday, August 12, 2009 12:00 am
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