We’ve now learned that the fearsome “fiscal cliff” was actually a fiscal bluff, and the dreaded need to increase the federal borrowing limits, since they are a construct of Congress, has been kicked down the road in anticipation of creating a crisis at a later date. From all the media hype people have been lead to believe that there is somehow a crisis regarding borrowing by the federal government. The national crisis is actually the ongoing crisis of unemployment and underemployment. Unemployment has increased the costs to our government, and also reduced revenues, so just reducing unemployment will work towards balancing the budget.
When we realize that the deficit is owed to the 1 percent and that unemployment is being suffered by the 99 percent, with our corporate ruled government we can see why the emphasis on the deficit. The fact that our government can borrow at historically low rates shows that financial markets are not concerned about the amount of borrowing.
History shows us how excessive unemployment was solved in the past through government spending on infrastructure and expanded education. Many of the improvements which were built in the 30’s in our National Parks and other public places are still serving public needs. Congress seems happy to borrow to support wars, but not to meet needs here at home. I would much rather leave my children with debt used to meet our needs in this country than debt spent to wage wars which only enrich the military industrial complex.