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Recipe for disaster
 There's a time for politics and there are times when politics must be set aside to achieve a greater good.
That's waxing a bit in nostalgia, but the events unfolding on Capitol Hill in Washington are a prime example of petty politics getting in the way of what's best for the country.
Of course, I'm referring to the ongoing debate on whether the Congress should approve raising the government's debt limit. It currently stands at $14 trillion and some change.
On or about Aug. 2, the U.S. Treasury, for the lack of a better description, will reach its limit on the amount of money it can borrow to pay the government's bills. The U.S. government spends about $390 billion per month. The government's income runs about $260 billion each month. In other words, our government bleeds red ink to the tune of about $130 billion each month. It's not a pretty picture.
Don't be misled, raising the debt limit simply allows the government to pay debt it already has incurred. It does not pave the way for the government to continue borrowing money in perpetuity.
Let's recall that deficit spending has been the norm in America for years, though there was a spell in the late 1990s and until about 2001 when the government posted surpluses. Bill Clinton, a Democrat, was president and Republicans controlled the Congress then.
The Balanced Budget Act of 1997 played a significant role in the Congress being able to approve budgets that reflected more income than expenses. Red hot tax receipts thanks to a red hot economy contributed to the surplus situation, too. Remember the dot com bubble?For the full story, subscribe to the The Concordia Sentinel's NEW E-Edition! |
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