Government: The Problem For All Our Solutions.

I know a lot of people are wondering why the federal government cannot get the debt problem taken care of, and I thought I would take a few minutes to hopefully shine some light on a few of the problems.

• Neither House Democrats nor President Obama have presented a plan. They have critiqued various parts of the Republican plan, but have not presented a plan themselves.
• The spending cuts that Democrats in Congress, and President Obama, are willing to allow are far in the future, while the tax increases they are demanding take effect far sooner. Also, in the past when democrats have made deals with Republicans such as "one dollar in tax increases for three dollars in spending cuts", the tax increases have taken place and congress never actually gets around to making the cuts. This is what happened to Ronald Reagan and George H. W. Bush.
• Republicans think that the way out of the recession is to allow more money to stay in the private sector, increasing business capital to allow more job creation. Democrats on the other hand think that the economy can be jump started by the government spending large amounts of borrowed money in incentives and programs.
• Republicans worry that if we simply raise the debt ceiling, then U.S. debt will be downgraded in value as people loose faith that it will ever be repaid. Everyone will be paid by money borrowed from somebody else until eventually nobody else will lend, leaving the last group of lenders will not get paid, and nobody wants to be the second to last group that doesn't get paid.

People like to talk about government being necessary to get us out of this mess, but may I point out that government got us into this mess by forcing/encouraging companies and banks to loan money into the housing market that could not be repaid. It wasn't corporate America that made a deal with the devil, it was the Federal Government trying to create a perfect world that made this mess.

That is what is at the base of the current difficulty. Is government the solution to the problems that plague our society, or is it, as many of the founding fathers said, a necessary evil?