TOUGH CHOICES

This past week there have been repeated warnings from diverse segments of our population that the financial situation of our nation is on the edge of disaster. Unfortunately, it is hard to argue against these doomsday prognostications.


The governor of New Jersey, Chris Christie, won an upset election with persuasive comments that there would have to be drastic changes in how much money his State spent in all aspects of government programs. Funding, he explained, was just not available. He has stuck to his campaign rhetoric and most recently by law mandated that annual raises for the police force and for firefighters could not exceed 2% per year. Very aptly he commented that, "Everyone is going to have to make tough choices."



These "tough choices" are being ignored by our Washington law makers who insist on spending money that the federal government just does not have. The national debt continues to increase. It is obviously tough for Congressmen and Senators to curtail spending intended to assist the unemployed and other needy portions of our population. These are "tough choices" but it is clear that these lawmakers are just not willing to take the difficult, but correct, economic position and curtail the federal spending. They just are not brave enough to stop racing America toward bankruptcy.



On this same general point, through his political commentary, Dick Morris has expressed that there are a significant number of our states in the on-going process of "taxing themselves to death". Several different observers have exposed that the financial status of about a half dozen states is technical, if not actual, bankruptcy These are followed closely by at least another ten severely "upside-down" states.



Meredith Whitney, another well known and concerned economist, has touched on a subject that is almost unknown in our nation. As a result of the almost certain financial failure of American cities, she states that there will "massive unrests" across the nation similar to those recently seen in Greece. One of the points made, which supports the above stated Dick Morris fear, is that states are funding approximately 40% of the on-going operational expenses of municipalities. Clearly when the states no longer have the ability to hand over huge amounts of money to cities and counties, there will be budgetary shortfalls, termination of government services and "massive unrests".



Governor Christie is correct. Each American is going to have to make "tough choices" by limiting spending and "tightening the belt." If we all do this, America can experience a financial rebirth.