It is prudent advice to set aside a little something for a rainy day. In looting the treasury, President Obama has failed to prepare for the storm sweeping up the East Coast and has nothing set aside to handle the aftermath.
The question is often asked by voters why the federal government can’t live within its means like citizens must do when faced with limited resources and monthly expenses. The simple answer is that the federal government has the ability to print more money and we citizens don’t. There are of course risks to this strategy and they come into play when this policy is abused. We citizens realize that unforeseen expenses tend to occasionally appear, and usually at the most inconvenient times. The car needs a repair or you find yourself in the emergency room for an unexpected injury. The list is endless, so, if we’re able, we set aside a little money to deal with these random unexpected emergencies to avoid putting a strain on our regular budget.
The federal government faces similar unexpected emergencies, but on a much larger scale involving some type of natural disaster that affects a large area and a great many people. Administrations that practice budgetary restraint and sound economic policies are in a much better position to weather these storms than those who are profligate and poorly focused. Hurricane Irene is sweeping up the East Coast in a rare event that will affect an area containing the largest population center in America. The worst part is that our economy has suffered under the weight of excessive government deficits and egregious overregulation, and barely has a pulse. The Obama Administration has failed to prepare for the unexpected and is incapable of dealing with the consequences.
Natural disasters are expensive to deal with. Infrastructure is destroyed, businesses are closed and paychecks aren’t coming in, and people are in need of basic necessities that aren’t readily available and must be shipped into the area. There are logistical nightmares that must be quickly solved involving medical care, food, water, and shelter, cleanup, and rebuilding. All of these challenges require funds and creative solutions; both of which are in short supply in the Obama Administration.
The $5 trillion that Obama has spent since taking office is not available to assist in this disaster. Worse than that, it was never really available at all since it was printed at the Treasury and borrowed from future generations. S&P recently downgraded American debt due to Obama’s profligate spending and the inability of Congress to work together to get the government’s spending under control. The money America will have to borrow to deal with Hurricane Irene’s destruction will be more expensive due to this debt downgrade. America is now seen as a riskier prospect, and for the first time in history, the thought that she may not be able to repay has been acknowledged.
Hurricane Irene will run her course, and America will pick up the pieces, rebuild, and move on. Hopefully, she will be lenient and spare us the worst. However, we can’t expect to rely on good fortune when preparing for unexpected challenges. A healthy, robust economy is the best preparation for weathering the unexpected. In that case, this storm would be viewed as a minor setback, but now it’s viewed as yet another depressing feature on a bleak downward economic trajectory and threatens to extinguish what little life the economy had left.