Editorial: Bailouts only expand problem

Staff

Published Tuesday, September 23, 2008

Greater debt is not the solution. These bailouts for Wall Street — like the war in Iraq — are being done on the federal credit card. This only increases the already gargantuan federal debt and weakens the U.S. dollar.

One only has to point to the Great Depression to wonder if we ever learned our lesson. Many people think it was the stock market crash in 1929 that caused the Great Depression, but economists will tell you it was the crushing war debt the country had at the time. The crash was merely one part of the larger problem.

The U.S. is a different country today than it was then, but the economic model for debt problems remains the same: You have too much and you tank.

President Bush’s mad spending has been like a teenager gone wild with a credit card. Our children and grandchildren will have to repay this debt.

When foreigners stop believing the U.S. federal government can repay its indebtedness, then the country will face even greater economic woes. One sign? The world trades barrels of oil in only U.S. dollars. That could change, and if it does, that will be trouble.

Bush is leaving a lot of messes for the next leader. We are surprised anyone wants the job.

Our country needs a responsible federal government, one that produces a surplus, one that spends wisely, one that invests in its future and one that regulates the market in the interest of long-term growth. These are the sound policies that produce a sound economy. It’s just that people get caught up in this fad issue or that distracting matter, and somewhere along the line, this country forgets what matters: our children and our children’s children.

Spending to save Wall Street might look good this week. It only will make things worse long-term.

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