The time has come for us to lift the cap on our borrowing capacity: 14.3 trillion Dollars has not been sufficient to turn our deficit around, and now we need to borrow more in order to not default. Normally, since being a business major I have a pretty decent grasp of the complexities of federal spending, I stay away from making claims on how our deficit should be handled. I’ve worked for the WTO, and I know better than a lot of people what my limitations of understanding national and global economics are.
Today, however, I happened to go for a run through one of my favorite parts of town. If ever you run down University Drive toward South Atherton, you’ll come across a giant sign that says Lederer Park, behind which there is a very beautiful, very quiet neighborhood. I have been there many times -it’s one of my favorite getaways when the noise of UP gets to me -and each time I can never quite wrap my mind around one peculiarity of this neighborhood: when it’s night, and you’d expect families to be relaxing inside their homes after a long day’s work, in this neighborhood I’ve seldom found more than half of the houses inhabited. People own them for sure; there are no property signs out in the yards, but neither are there cars in the driveways or people in the windows. I believe that these mansions are the second (or perhaps third or fourth) homes of football fans who stop by every now and then in the fall (and maybe this weekend too). Again, you guys are probably all rag on me for this too, but I think our country has earned it’s current situation through many irresponsible government initiatives such as the American Dream Downpayment Act of 2003, or by allowing stated income loans to be sufficient for home mortgages. Again, I’m in Smeal, I understand the merit of the free market and in our freedom to use our incomes however we please and to not pay high tax rates. But the reality is this: people don’t actually know how to spend their money wisely. How else did we get here in the first place? Instinctively, once our physiological needs of food and shelter have been met, our first priority is took seek to advance our own position or our own comfort, and not to better our society through social giving. In a perfect world, I would be absolutely pro free market policies, but we live in a far more broken world than that. Stricter government intervention at this time is a good idea, and if we need anything right now, it’s aggressive appeals to revalue the Chinese Yuan, and better incentives for American corporations to stay at home.