Is It Time to Make Some Lemonade?
Written by Sandy Stuart
There is much concern about the political shenanigans concerning our nation’s economy. There have been some pretty sour “lemons” and another yet to come. Can we use some lessons learned and make some lemonade?
The first lemon was sequestration. Such unorganized cutting would surely undo our fragile economy. It didn’t. As it turned out the biggest thing was to start cutting…..somewhere! Anywhere!
The second lemon was the Federal government shutdown. It forced us to make some hard choices as we reworked our priorities to determine what was the most essential of the important. We determined we could even cancel some service academy football games! Things like our national security, regulation of interstate commerce, maintaining a strong currency come into focus as really important. Less so are things like equalizing income, feeding hungry citizens, etc.
Now, looming in the not-to-distant future is the possibility of Congress’ failure to authorize a new, higher debt level. Much is being said of our country’s full faith and credit and that we must have a higher debt level so that the country can pay its debts. Wait a minute! Am I hearing that right? Are we borrowing to repay our debts? I’m sorry, but I would never lend money to someone who needed the loan to repay another loan. Sounds kinda “ponzi-like”.
Why don’t we make some lemonade? Why don’t we keep the debt level right where it is? Force ourselves to do what most families do – live within our means so that income equals outgo. And, new debt does not go into the income column. Speaking of “full faith and credit”, one of our highest priorities should be paying off foreign creditors. That is the very best way to demonstrate our full faith and credit to our creditors. Stop borrowing. When you find you are in a hole, stop digging!
And know that when our politicians talk about “investing”, realize it is spending. With more than a little courage and a lot of discipline, we might be able to sell some lemonade and climb out of the hole in which we find ourselves.