The United States became a superpower in the 1930s
and, 80 years later, stands on the brink of losing that status. It rose to
global standings at short notice, and its decline can occur just as abruptly. The partial government shutdown both reminds us that the United States has
reached such a precarious position and shows us exactly how things can now
unravel as it approaches the really big confrontation over the debt ceiling.
Isolationism
was a powerful idea in the 1930s and through 1940’s the United States felt
burned by its involvement in World War I. The United States had
created a vast military, won victories around the world and tipped the balance
in the largest global conflict that we know of. All of this was based on the
political decisions that while the nation should be careful with government
finances, it was acceptable to borrow heavily under extreme circumstances.
Smart financial understandings and when it should come under play helped to establish
the United States economic standings. Now really stupid fiscal policy threatens
to bring the United States down.
The primary
cause of any public money problem is not the ability of people to pay their
taxes, it’s their willingness to pay their taxes or, as in the current
situation in the United States, the willingness of their elected
representatives to finance the government. This willingness is always tied
closely to the truthful actions of the government and what they are able to perform.
Does enough of the population think that the people with political power won it
in a fair manner and are they willing to accept policies with which they do not
necessarily agree? Sounds oh so similar to so many government dilemmas and
issues we’ve all had with the financial dealings with the government I would have
to say. It’s funny enough that our own economic growth applied to the partial government
shutdown or not, can have much more of an effect than say the decline of
foreign dealings.
The United States faces a serious fiscal crisis not
because of the partial government shutdown exactly, but rather because of what
those experiences indicate what will be considered acceptable for other countries
to establish positive relationships with us. Today’s optimists are those who
think the current partial government shutdown will allow the Republican Party
to work out some internal issues. Realists also like to point out that when the
United States has big financial dilemmas it tends to destabilize the rest of
the world more than it hurts the United States. If the common business man
cannot speak truth to the Republican Party and convince the person in charge and enough
members of Congress to return to how it used to be there is not much hope for
the United States in today’s global economy sadly, though that’s what I personally
think.
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