Can the US Overcome Economic Trouble? Time to become a Prepper!
As a prepper we need to prepare for the many situations that could come our way. These can be from disasters, economic breakdown, societal breakdown, terrorism and many other problems. I feel at the moment if we look at the problems of the world many of the problems revolve around the economies and downturn of the last few years. This is a look at how I feel the US has gone wrong in the past and that there doesn’t seem to be any change coming in the future as both parties are for spending in their own ways.
As we see Greece and other countries go into shambles because of spending, bad government decisions and corruption. In Greece there have been riots and many other things that have happened due to the economy. So I feel this will be one of the biggest problems in the future. Not only will you be more comfortable, as a prepper, in a full societal breakdown, but you will also be more comfortable if you are to lose your job or are tight on money because of many other factors.
Few rational people in the world would doubt the success of the great American “economic freedom” experiment conceived the late 18th century and still flourishing more than two hundred years later. However, the faltering of the U.S. economy recently is also evident to the world, even though few actually know this downturn is largely due to unchecked government spending and the lack of any budgetary discipline among the governing majority.
The U.S. Constitution assured the rise of American prosperity by instilling the unique principle of limiting the government’s ability to stifle the economic freedom of the new republic. The founders were visionary, but they did not believe on-going success was going to be automatic or the result of a powerful central government. Instead, they believed their own personal qualities of self-discipline would remain in the American mindset forever. They were wrong.
In spite of all the well-designed checks and balances, the founders could not prevent the human imperfections of selfishness (specifically political self-interest) and procrastination from eroding many of these freedoms, and thus eroding our prosperity. These two unhealthy political traits of our government are dangerous when found in combination. Together, self-interest and procrastination create a political virus that has infected both the American voters and their government. They have weakened the economy with reckless government spending and a disregard for the simple act of self-discipline called budgeting.
A quick review of information available in almost all news media confirms the toll these two dangerous political traits have taken by revealing two frightening statistics. The first is the unbelievable recent rise in the national debt, and the second is the fact that no budget has cleared the U.S. Senate in nearly 4 years. Since the last budget passed the Senate April 29, 2009 the government has spent more than $9 trillion and added more than $ 4 trillion to the nation’s debt, with no end in sight for the reckless spending of the government. Without a budget for planning and controlling the spending, the government simply passes resolutions to spend the money anyway, while claiming that this is necessary to keep vital government services from shutting down.
The nation’s founders’ discipline is certainly the cure for this political virus, but that antidote is scarce in Washington and much of the rest of the country as well. Instead of the naturally occurring spending and growth disciplines of a pure capitalistic system, which budgets and self-polices spending, our government has gradually adopted the economic principles of John Keynes, a philosopher who proposed indiscriminate government spending, even when it must be borrowed, falsely labeling it as a stimulus. Such spending is also above and beyond the already bloated mandatory entitlement spending. The Keynesians politicians who believe in this government stimulus principle deceptively appear to direct their spending toward public works, public health and welfare, and other apparently humanitarian causes, while hiding purely political spending in the overall proposal. The emotional ploy of promoting a “good cause” to the masses, the voters, allows them to get away with the unwarranted spending. This type of deficit spending reflects both the self-interest of the politicians, as well as their procrastination because it attempts to win favor with voters, and it defers the repayment of the debt incurred to future voters.
Real damage to the economy is the result of this unwarranted public sector spending because of the uncertainly and caution it forces into the disciplined budgeting process of the private sector. No successful, and therefore budget-minded, small business or large corporation is going to expand hiring and increase R&D spending when the threat of higher taxes to support uncontrolled government spending is looming. Furthermore, fewer entrepreneurs will risk launching new and innovative ideas for starting small businesses for the same reasons that higher taxes will depress their chances for economic success. I can imagine it would be tough for any new business owner, always having to tell themselves, “I am going to be constantly adjusting the size of my tax refund this year.” Most job growth comes from small business. When small businesses and large companies don’t expand and don’t spend money for expected future growth and profit, many of the key indicators that denote a bad economy occur. High unemployment and lower tax revenues (due to less free market economic activity) are two of these key indicators. Yet, these two indicators also increase the political “we must raise taxes” rhetoric of the budget-less, big government spenders which further deters the private sector from doing what it does best when left alone – grow and add jobs.
Real budgeting forces prudent and wise planning and thereby controls spending. Most households in the U.S. operate and succeed on that simple principle, yet the lack of that principle in an unchecked government bureaucracy has tarnished the once enviable economic model for the world first established by the United States.
Not only are the concepts of budgeting good for the government, but they are very important in our personal lives. With many people being in immense credit card debt there is a fundamental problem with spending. The government as well as the people spending money they don’t have and will not be able to pay back is a huge part of the problem.
Be part of the solution, start a budget for your family and try to stick by it. Yes there will be unforeseen events that may require a use of credit, but try to get money and supplies saved so you will have money to fall back on. America let’s try to live within our means and that may mean sacrificing things we want.