What have we learned from the history of the entitlement society we have created in the United States and others around the world? We’ve learned that entitlements create the enticement for deficit spending. We’ve learned that entitlements create government dependency. Most importantly we’ve learned that entitlement societies are not sustainable. Europe is going through a financial crisis right now due to excess entitlements. Entitlements are primarily responsible for the current financial mess this country is in.
Perhaps the saddest thing we’ve learned from history is that our elected representatives and voting citizens have not learned a thing from history! Our representatives have enacted programs that have failed in the past. Unsuccessful or harmful programs can rarely be stopped. Our citizens continue to vote in representatives who perpetuate ineffective and wasteful programs.
Can our representatives and voters really be that oblivious to history and events around the world? Of course some can! Some may not be oblivious but have an agenda. However, I believe the primary reason for government’s irresponsible financial management is the reason people do most everything. Short term self interest.
Our representatives have put their personal re-election and power above the nation’s long term survival. They have bought their re-elections with entitlement spending, hidden the costs to taxpayers by borrowing the money, and left the problem to a future generation. Likewise, voters have demanded free handouts, at the expense of their own and their children’s future. Government employees abet the scheme by working to keep people dependent on the programs upon which their employment relies.
Liberalism only looks at the short term. If someone is poor, the problem must be that they need money now. No concern is shown whether anyone is really helped in the long run, judging by the ineffectiveness of war on poverty.
No matter what arguments liberals present, they can’t overcome the fact that their policies eventually lead to broken promises or bankruptcy. Their ideals end when the money runs out. European countries are already realizing the need to make major cuts to government spending. These countries are also realizing that their citizens are not reacting very well to the necessary changes.
So what does our financial mess from 40 plus years of short-term, self-serving thinking mean to you? Well, you can be sure that things will not continue as they are. The bill will come due at some point, probably when investors decide not to lend our country any more money. The government will eventually break its promises, just like we’ve seen in Europe. Those that have allowed themselves to become dependent on entitlements will be hurt the worse. Charitable giving will undoubtedly decline. Welfare and health care entitlements will be cut, leaving the poor worse off. Higher taxes are likely, as is the postponement of retirement for many. Government pensions will be reduced below the promised amounts. A default on the government’s debt is a realistic possibility.
Higher inflation is also likely. Given the unlikelihood that representatives will suddenly see the light and behave responsibly, printing money to pay debts is a temptation that won’t be avoided. The Federal Reserve is already doing this. Increasing the money supply generally leads to inflation, a problem just as bad as tax increases.
The Tea Party movement deserves the nation’s gratitude for waking us all up to the financial mess we are in. It is just as important for the voters see the light as it is for our representatives. Hopefully, the recent election results signal a turning point and we will correct our situation before we reach the point of bankruptcy.
One final point. This whole financial mess would have been avoided if our elected representatives had simply understood and followed the Constitution.