This is more of an opinion peice than a news article, but since it expounds on a lot of what in the news these days, perhaps the moderators will let it stand. It is, I am afraid, what we’re all facing.
by Linda Monk
(Linda R. Monk, J. D., is a constitutional scholar, journalist, and nationally award-winning author. A graduate of Harvard Law School , she twice received the American Bar Association’s Silver Gavel Award, its highest honor for law-related media. Her books include The Words We Live By: Your Annotated Guide to the Constitution, Ordinary Americans: U. S. History Through the Eyes of Everyday People, and The Bill of Rights: A User’s Guide. For more than 20 years, Ms. Monk has written commentary for newspapers nationwide, including the New York Times, Washington Post, Los Angeles Times, and Chicago Tribune)
The Crash of 2008, which is now wiping out trillions of dollars of our people’s wealth, is, like the Crash of 1929, likely to mark the end of one era and the onset of another. The new era will see a more sober and much diminished America.
The “Omnipower” and “Indispensable Nation” we heard about in all the hubris and braggadocio following our Cold War victory is history.
Seizing on the crisis, the left says we are witnessing the failure of market economics, a failure of conservatism.
This is nonsense.
What we are witnessing is the collapse of Gordon Gecko (“Greed Is Good!”) capitalism.
What we are witnessing is what happens to a prodigal nation that ignores history, and forgets and abandons the philosophy and principles that made it great.
A true conservative (Rep or Dem) cherishes prudence and believes in fiscal responsibility, balanced budgets and a self-reliant republic. He/She believes in saving for retirement and a rainy day, in deferred gratification, in not buying on credit what you cannot afford, in living within your means.
Is that really what got Wall Street and us into this mess – that we followed too religiously the gospel of Robert Taft and Russell Kirk?
“Government must save us!” cries the left, as ever.
Yet, who got us into this mess if not the government – the Fed with its easy money, Bush with his profligate spending, and Congress and the SEC by liberating Wall Street and failing to step in and stop the drunken orgy?
For years, we Americans have spent more than we earned. We save nothing.
Credit card debt, consumer debt, auto debt, mortgage debt, corporate debt – all are at record levels. And with pensions and savings being wiped out, much of that debt will never be repaid.
Our standard of living is inevitably going to fall. For foreigners will not forever buy our bonds or lend us more money if they rightly fear that they will be paid back, if at all, in cheaper dollars.
We are going to have to learn to live again within our means.
THE PARTY’S OVER!
Up through World War II, we followed the Hamiltonian idea that America must remain economically independent of the world in order to remain politically independent. But this generation decided that was yesterday’s bromide and we must march bravely forward into a Global Economy, where we all depend on one another.
American companies morphed into “Global Companies” and moved plants and factories to Mexico , Asia, China, and India, and we began buying more cheaply from abroad what we used to make at home: shoes, clothes, bikes, cars, radios, TVs, planes, computers.
As the trade deficits began inexorably to rise to 6 percent of GDP, we began vast borrowing from abroad to continue buying from abroad.