Stop Pulling the Wagon

In the news last week it was announced that not one student

in any school in Baltimore was proficient at grade level math.

Reminds me of the United States Congress

Back in February 2011 I wrote an article, which I intended to be humorous, about a plan to destroy the U.S. economy and impoverish we citizens.  At that time, just 12 short years ago, the National Debt stood at 14.1 Trillion Dollars.  Today our Nations Debt stands at 31.5 Trillion Dollars.  We have added 17.4 Trillion Dollars to the debt we will be leaving our children and grandchildren in those 12 years.   

Just announced, The Congressional Budget office projects a National Debt of 52 Trillion Dollars by 2033.

It seems Congress used my instructions as a blueprint for action and unfortunately what I wrote as a spoof is happening.  Sorry!

This is what I wrote in that article back in 2011

“If  I wanted to destroy the United States economy and impoverish its citizens here is what I would do in five steps:

Step 1.  I would seek out and recruit incompetent people to infiltrate and take charge of our government.  Next, I would split them into two groups, which I will call, lets see, how about “Congress” and “Administration”.  The folks chosen  need not be co-conspirators,  just big spenders with big egos and no common sense.  All of these folks would be given unlimited borrowing and spending  power and the bills would be sent to the taxpayers.

Step 2.  I would have laws and regulations passed to make it nearly impossible for any individual or company to drill, mine, extract or in any way acquire any of the natural resources we need as a nation, within the physical boundaries or territorial waters of the United States.  All such needed materials would be required to be imported, preferably from countries not friendly to us.  This would be done in the name of protecting the environment.

Step 3.  I would have the government pass laws and regulations to punish hard work and financial success either by individuals or companies with a combination of regulations, fees and  confiscatory taxes.    For whatever “profits” were left over after the fees and taxes were paid I would unleash packs of morally bankrupt, ravenous Trial Lawyers to file endless lawsuits and litigation.   This would encourage any individual or company to move production (and jobs) out of the U.S. to places with more friendly environments to manufacturing and employers.

Step 4.  I would have “my” government reward laziness, incompetence and failure with government handouts, grants, promotions, do nothing projects and various “freebies”.  These same people could later be hired into government “make work  jobs” in a variety of government agencies and departments  where nothing useful or productive is accomplished or expected.   That way they could continue to get paid for producing nothing and retire to fat lifetime pensions and benefits .  They would fit right in.

Step 5.  I would make sure the government kept increasing the national debt to the point that even paying the interest on the debt became impossible.  They could then destroy any remaining wealth in the country by hyper-inflating the currency,  just as Germany did following World War I.   In Germany at that time it got to the point that it took a wheelbarrow full of money to buy a loaf of bread.  For a more recent example one need only look to Zimbabwe where inflation reached 79600000000% per month in just the last couple of years.” 

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As a reference point, if “we” pay 5% interest (less than our current rate of inflation) on “our” debt of 31.5 Trillion Dollars the interest cost for 2023 would be 1.575 Trillion Dollars.  The United States Federal budget for 2023 is 1.582 Trillion Dollars – This is the “so called” discretionary Budget as the rest of Federal spending is on “auto pilot”.  The expected “shortfall” deficit in this budget is 1.4 Trillion Dollars which will have to be either covered with the printing press or added to the deficit.  There is not enough Dollars in this Federal Budget to even pay the interest on the debt at todays interest rates.  There would also be no money for any of the other things our government does.  Soooooooo…..  what will the government do.  They will, with some smoke and mirrors, continue to run up the debt and print money which will cause inflation.  Inflation is a tax that affects all of us.  We are experiencing inflation now; have you been grocery shopping lately?  Buckle up!

And to those who say we can pay for it all if we just tax the rich more:  If you taxed all the “rich” at 100%, and you could do it only once, after that there would be no more rich to tax and, it would not begin to fund our governments spending for more than a couple of months.  Then what?

I can lay out a 5 Step plan to turn the corner on the exploding debt and put us on a disciplined plan to fiscal recovery but will absolutely guarantee that those in our government will never put such a plan to work.  Government lacks the desire, the will or the discipline to do what would be required.  They would prefer to “saddle” our children, grandchildren and great grandchildren with crushing inflation and fiscal ruin.

Like most everyone else I prefer an optimistic outlook but fiscal mathematics and debt are like gravity, which does not care what my or your preferences are. 

As I follow the daily news I am thinking the wheels may be starting to come off the wagon.

Bob Bandy – February 2023