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A government debt is a government claim against personal income and private property – an unpaid tax bill. – Hans F. Sennholz,Democracies Wreck Treacherous Debt
Democracies have an universal flaw. Democratically elected politicians pander to present voters. Politicians bestow generous benefits to voters, and push debt off to the future. Treacherously, democracies accrete debt, which becomes dangerous to financial, societal and democratic order. In the Wall Street Journal, Gerald P. O’Driscoll Jr. explains the Greece crisis:
The underlying dilemma is that governments have promised their citizens more social programs than can be financed with the tax revenue generated by the private sector. High tax rates choke off the economic growth needed to finance the promises.
This is exactly what occurred throughout America. Municipal, state and federal governments have perilous debts. Politicians have willfully and recklessly caused these debts, and the prudent stewardship over government finances is trumped by the politicians’ lust for prestige and power.
O’Driscoll continues to describe the Greek fiscal dilemma:
There is a bloated public sector, and competitive private enterprise is hobbled by regulation and government barriers to entry.
Again, this is also America’s dilemma Bloated public sectors and lavish public retirements are creating enormous debt burdens. Illinois increased state income tax by 66 percent to pay for promised benefits, and Illinois’ debt debacle still continues. Additionally, American entrepreneurs are burdened with excessive rules and regulations. All caused by politicians – Democrats and Republicans – that have been fraudulent stewards of their duty for honest and prudent governance.
And, of course, the U.S. has its own large and growing public debt burden. We have not gone as far down the road to entitlements, but we are catching up. If you want to know how the debt crisis will play out here, watch the downward spiral in the EU.
Fortunately, America has time to avoid the acute crisis of Greece and the European decline. However, we must have immediate structural change. We the People cannot wait for the politicians to make significant reforms. We the People must force reform upon the politicians.
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Without restraints on democratically elected politicians, America will continue to spiral downward...just like Europe.