Over the past twenty two or so years, the American people have received approximately $30 trillion worth of government services for which the tax to pay for them was deferred by borrowing the money. Even today, that deferred tax is about an additional $2 trillion each year. That tax bill is there. Nobody is going to forgive it or pay it for us. One way or another, we will have to pay for it or it will bankrupt the country. If that happens, the so called social safety net isn’t weakened, it’s obliterated.
It is often said that Congress has “the power of the purse”. Yet, it is Congress that has run up this tax bill, and continues to debate to this day how much bigger to make it. It is convenient and popular to blame the president, or one of the parties, but the past 22 years of profligacy is a totally bipartisan achievement. And, no president could prevail over the 535 members standing together to enact a responsible budget. Bill Clinton tried and failed, resulting in the last time we had a balanced budget. So, it is possible.
But what if Congress simply fails to do so? The only other branch of government with any control over the country’s finances is the executive. Should it simply stand by and watch the carnage happen? Historically, the answer was yes. Even this president argued against the deficit budgets, but signed them anyway, because, as he said this time, “we just don’t have the votes”. Still, he has chosen to act unilaterally. Maybe hoping Congress would get the message. Maybe just doing what he could. Whether it was DOGE or the tariffs, he is trying to stop the bleeding. Yes, tariffs are a tax on us. But we owe the money. One small advantage is the possibility that other countries will subsidize their home businesses that have to pay them. But, the tax bill is ours to pay.
The past thousand or so years of history shows far more countries failed due to economic ineptitude than military conflict. Recent examples include Venezuela, Argentine, Puerto Rico, and Greece. And France is on the brink. Running out of money has no size limitations. We are not too big to fail.
M.J. Knudsen, Trabuco Canyon
