A Call For Domestic Production And Energy Independence
Lawrence Kadish wrote last week that America’s leaders must reevaluate the nation’s fiscal policies, as runaway federal spending is causing significant inflation and mounting national debt. The current administration’s continued debt accumulation is a silent killer, destined to have adverse consequences on future generations.
As history demonstrates, the rise and fall of nations hinge on their ability to maintain a balanced budget while establishing a solid economic foundation. Unfortunately, the lack of focus on economic history in our education system perpetuates a cycle of mismanagement, inevitably leading to the downfall of great nations.
The government’s control over money has created a disastrous monetary policy that benefits a select few. The central bank and its member banks have undue power over the nation’s finances, enriching a few individuals at the expense of the majority. As economist Murray Rothbard once wrote, inflation is “a powerful and subtle means for government acquisition of the public’s resources, a painless and all the more dangerous form of taxation.”
To counter this trend, America must reestablish domestic production and energy independence, reducing reliance on foreign markets and promoting economic stability. By harnessing the power of a balanced budget and energy independence, the U.S. can regain its position as a global leader while ensuring a bright future for future generations.
President Biden’s recent State of the Union address highlighted the issue of fiscal illusion, with claims of deficit reduction that sidestep the reality of the rising national debt. Nobel Prize-winning economist James Buchanan’s concept of fiscal illusion describes how the actual costs of public policies are often obscured, causing citizens to underestimate the impact of government spending. This illusion can lead to demands for more government spending, ultimately harming future taxpayers.
Furthermore, the nation’s massive unfunded liabilities in Social Security and Medicare programs contribute to this fiscal illusion. These programs’ hidden costs make it difficult for citizens to understand their impact on future generations. If left unaddressed, the financial burden will only grow, ultimately affecting seniors and their benefits.
As Buchanan and co-author Richard Wagner wrote in “Democracy in Deficit,” budgets must be reined in to ensure stability and prevent financial disaster. America’s political leaders should recognize the role of fiscal illusion in shaping public policy and work towards creating a more fiscally responsible future.
A “Made in the USA” policy and energy independence are crucial to countering the inflation and rising national debt caused by excessive government spending. By investing in domestic production and resources, the United States can ensure a secure future for its citizens while reestablishing its place as a global leader in economic stability.