Carrying The Load

If we read enough of the daily news headlines, we’ll see a wide variance of speculation as to the timing and extent of an economic recovery. But, how much do we read concerning what happens between now and then? A guess, as to the lack of information and opinions on “what do we do in the meantime”, would be that, “the truth could be politically damaging”. After all, didn’t we hear promise after promise during Mr. Obama’s campaign for the White House that “change” was coming? The references to “change” meant prosperity, transparency, integrity, and genuine representation in government.

The present economic conditions, here and abroad, are forcing the present administration to react by shouldering the burdens of high unemployment, foreclosures, bankruptcies, and financially weak corporations such as the auto makers. In other words, the government “IS” our economy at present. This is not information that the present administration wants emphasized in the daily headlines. Without borrowing ( enormous debt ) by the government, in their efforts to keep the economy going, we would have already been in a state of “economic collapse”.

A legitimate question that needs to be asked, is, “how much longer can the government carry the load?” We’re already hearing that the employment picture looks very dim until sometime in mid 2010. The same timetable has been suggested concerning the housing market. Corporate woes and failures continue to make daily headlines, and though it’s not something spotlighted, the government is pouring $Billions into failed pension funds. These are enormous stresses and taxations on a government already facing huge deficits passed down from previous administrations.

The domestic financial burden is heavy enough without adding the cost of wars and the future financial responsibilities associated with veterans. Where will this revenue come from, and will it come fast enough to keep our dollar from “damaging devaluation”?

It’s obvious that the government can’t carry the burdens of the economy via borrowed money forever. At some point, revenue generated through payroll taxes and sales taxes must replace borrowed money. Of course, this is not something the government wants to put a timetable on. To do so, would more than likely cause panic, and may even lead to riots in the streets. The government does not want you to know the very possible and likely scenario of a prolonged government supported economy. They can’t carry the load much longer.