One of the most frightening things facing our economy is the devaluation of the dollar, and especially the potential that it will no longer be the international currency of choice.
There are things we can do, today, to keep the dollar in its internationally renowned position, and at the same time, stabilize the dollar.
The first thing we must do is balance the budget by cuts to spending. Any proposal to balance the budget by raising taxes ignores the fact that taxes are what is killing our economy today. With the 2nd highest corporate income tax in the world (soon to be 1st as Japan lowers their corporate income tax), it is unimaginable that raising tax rates would bring in more tax revenue.
These cuts must come from the entitlement programs such as Social Security and Medicare. They must also come from the military. We should start the discussion with an across-the-board cut to all spending to balance the budget. Then every discussion of raising the budget for a particular item must come with a cut to a different item. If you cannot argue that one form of spending is more critical than another, then you cannot increase it.
The second thing we must do is restart the American economy. There is no reason why we, of all countries, shouldn’t experience 10-20% real annual growth. In order to do so, we must unleash the capitalist spirit in our people by cutting tax rates and eliminating the vast majority of the regulations on the books. The only regulations that should remain are standards and measures used to facilitate economic transactions. We can argue about the regulations that aggregate tort costs, such as noise or air pollution regulations, which simply forbid industry from pushing their real costs off to someone else and force them to internalize it. However, we must admit that many countries are willing to put up with the damage that industry does because they would rather have industry than a pristine environment or clean air. We must also ask ourselves which is more valuable to us in each case.
Getting either of these reforms through when the senate is controlled by the democrats and our commander in chief is an open Marxist is highly unlikely. The only method republicans have to control the government is to shut down the government.
There are two ways to shut down the government. One is to simply refuse to pass a budget. Without a budget, the president cannot spend a dime. The senate cannot write a budget, but only vote on and modify the house’s proposal.
The other way is to refuse to raise the debt ceiling. This means that, by natural fact, we must balance the budget, in real terms, immediately.
I support both of these actions.
Shutting down the government is a good idea all around. The American people don’t need the government to survive. The government is a servant that simply provides law and order—law and order we can provide for ourselves if need be. When the government shuts down for a long period of time, the world will see exactly what kind of people the American people are, and realize that it is the government that depends on us, not the people who depend on the government.
Shutting down the government by refusing to raise the debt ceiling will send an immediate message to the world that we are not going to go bankrupt, and that we have the gumption to cut up our credit cards before we get too far in debt.
I hope the Republicans stick to the ideals of our Founding Fathers, which is that all men are equal and all men have within themselves the power to govern themselves. I hope the republicans point their spears at government, unlike the previous congress which had their spears pointed at the people. Rather than fight the will of the people, they can use our disgust with “business as usual” to really change the way government works.