On August 8th, conservative values advocate Sarah Palin provided her opinion on the recent S&P downgrade of the US credit rating, and how the spending binges of the last three years have led governemnt debt to skyrocket to a point that our standing in the global economic community is being threatened by another crisis.
With S&P and others now warning that we could face another downgrade if we don’t get serious about our debt problem (i.e., recklessly spending money we don’t have), Washington needs to wake up before things get worse! We’re already hearing murmurs about QE3, which is just madness and will further debase our currency at a time when the dollar’s status as the world’s reserve currency is already being questioned. The loss of the dollar’s reserve currency status would adversely impact us in every conceivable way. Our standard of living would decline as imports become more expensive (including imports of foreign oil), government wouldn’t be able to finance deficits as cheaply, and American corporations – employers – would lose a competitive edge. It would be another crack in our status as a financial superpower. – Sarah Palin
While many of these same points are being espoused by people like Ron Paul, Gerald Celente, and Rick Santelli, very few in Washington are actually understanding the ramifications of what continuing to spend above our means is doing to our economy, and standing in the global economic community. The recent debates over the debt ceiling had little to do with actually finding ways to shore up the nations fiscal responsibility, but instead it focussed on ways to find more accounting loopholes directed at future spending, and different tax schemes to implement on the rich and middle classes.
Sarah continues in her narrative to point out potential solutions to help the government find ways to boost the economy, while seeking real policies in cutting the monster that is our out of control spending.
First, we need to get serious about our deficit. No more accounting gimmicks. No more cuts in “out-years” that never materialize. The permanent political class in D.C. might be fooling themselves with these Enron-like accounting games, but they’re not fooling the world’s capital markets. And we don’t need any more happy talk from the White House about “investing” in solar shingles and really fast trains. The White House shouldn’t even bother floating these new spending programs. We can’t afford them. Period. We need to stop this deficit spending, balance our budget, repeal Obamacare, cancel all unused stimulus funds, and reform our entitlement programs. – Sarah Palin
There are many good points in these suggested solutions, and are ones that are paralleled in the common man’s own budgetary concerns when outgo runs higher than income. First, paying debts and ensuring neccesary expenditures are paid off is vital in both Washington, and for the average Joe on Main Street. All discreationary spending and projects should be placed on the back burner for a time when there is legitimate monies to fund them, or they become actual necessities to the America people. Secondly, a reversal of anti-business policies such as over regulation and a resurgence of capital lending by banks must take place which will stimulate real growth, and add more revenues to the government so it can pay down its debt obligations.
Sarah Palin is a polarizing figure to many groups of people in the United States, and her primary fault has been a lack of understanding in a few national issues which led to her criticism during the 2008 elections. However, her ability to stand firm on a side once committed is a quality that redeems many shortfalls in her understanding of some domestic and foreign policy issues, and in the case of government debt and our recent ratings downgrade, Sarah is quite correct on determination of the problem, and potential solutions to right the American economic ship.