America begins its death throes

The Thinker by Rodin

My federal salary has been frozen for two years by law because previous administrations and congresses failed in their duty as national stewards. I am not happy about it, but a frozen salary beats unemployment. Republicans are anxious to do a whole lot more than just freeze federal salaries. They want to cut government, not intelligently like a surgeon with a scalpel, but like a medieval soldier with a battle-axe. Apparently, just freezing salaries is for weenies. Cutting federal salaries shows manhood. Republicans have all sorts of ways they want to show their manhood. Most of them actually suggest insanity. Many are actually hoping to put the federal government into default. They will do this by not extending the federal debt ceiling in the spring. Why? Because they say they were elected not to increase the deficit, but mostly because they can and because inflicting pain on people is fun.

Tea Party Republicans want to cut $100 billion from non-defense discretionary this year, for a fiscal year that ends September 30. Apparently they think a trail of unprocessed social security checks and furloughed air traffic controllers are going to improve us. In fact, a Republican plan calls for a fifteen percent reduction in the civil service and a five-year freeze on federal salaries. One Republican congressman wants to furlough federal employees for two weeks a year. Naturally there is nothing like a plan for doing these things intelligently. They goal is to maim with the hope of killing altogether. It’s like setting fire to your crazy neighbor’s house. It’s quite a belly laugh and it feels so good. Only defense spending is sacrosanct.

Governments everywhere are having problems matching revenues with needs and obligations. The State of Illinois is raising taxes dramatically to do minor things like pave its roads and house its prisoners, after papering over its deficits with accounting tricks for many years. Virtually every state with the possible exception of North and South Dakota are not just tightening belts, but also often dramatically cutting services. States are thinking of doing things that were previously unthinkable, such as releasing minor offenders from state prisons to save money. Some Oregon school districts can’t even afford put their children in school five days a week. The children have to hope that four days of education will allow them to adequately compete in adult life. More likely, they will be competing for positions of stock clerks and cashiers at Wal-Mart. Cities are not exempt either. Harrisburg, Pennsylvania, which hosts the state’s capital, is bankrupt and the financially stressed state government will not bail them out. Meanwhile, to make the new health care reform law work, the federal government is requiring states to add more poor people to its Medicaid roles, which requires more revenue. The states are resisting.

States cannot go bankrupt because they have the power to tax. Those state employee pension plans may be expensive, but to make them solvent states could simply raise taxes. This doesn’t sit well with taxpayers, of course, which is why state bankruptcy holds appeal for some. Everyone sort of assumed that the economy would expand forever, with a few hiccups here and there. When the money got tighter, legislatures did what they often did: they rolled the die and hoped for the best.

Where some see crisis, others see opportunity. “Others” would include former disgraced House speaker Newt Gingrich, who wants the federal government to allow states to declare bankruptcy. He figures it will work the same magic on those evil state and local employee unions that it worked on the auto unions. By freeing states from their pension obligations, states can rapidly get back into solvency. Of course there is the minor matter of state employees, who joined the public sector for inadequate wages on the promise that compensation would come in the form of a decent pension. If Gingrich has his way, they will be eating dog food in their retirement, assuming they can even afford that.

Federal employees like me are not necessarily immune either. A law can make anything retroactive. If a law can freeze my pay for two years, it can reduce my pay by ten percent or find other ways to cut my retirement income. I am eligible to retire in May 2012. Looking at Greece as a worst-case model, I figure a twenty five percent cut in my pension in the name of fiscal solvency is possible, if not probable. It might be more. Some future Congress, citing a grave financial crisis that previous congresses inflicted, may just defund our pensions altogether. (Somehow, I’m betting tax cuts for millionaires would keep going.)

Changing this depends on whether we can keep growing as a nation. If we can then tax revenues eventually start gushing in. Curiously, despite all the rhetoric coming out of Washington, politicians don’t seem to care that much about creating growth, at least the kind that puts money into the pockets of ordinary working people. The House of Representatives, sent to create jobs, is focused on the impossible task of repealing “Obamacare” instead. They are also giving priority to tightening abortion laws, by trying to outlaw abortion coverage in private sector health insurance plans. (So much for getting the government out of our business.) Former Pennsylvania senator Rick Santorum, rumored to be angling to run for president in 2012 has prioritized protecting blastocysts in a petri dish above the life of an actual two-year-old girl.

Collectively, our nation is dealing with the repercussions of thirty years of prioritizing ideology and short-term thinking over the nation’s long-term needs. Our new Congress could, for example, be working on ways to make Medicare solvent. That might indicate that they are actually earning their salaries. Instead, at least in the House of Representatives, they are more concerned about investigating all aspects of the “corruption” in the Obama Administration. These actions point to putting axes to grind ahead of the needs of the nation. No end is in sight.

What we need is not a Congress of short-term ideologues, but a Congress willing to address the long term needs of the nation. You know, people charged with being stewards of our nation, looking beyond reelection in two years to making sure the nation is secure, solvent and prosperous twenty and fifty years from now. In short, we need politicians who care as much about our nation fifty years from now when they are dead than two years from now.

I can’t see how to possibly sell this to a political set of ideologues and voters only concerned about the short-term. Other nations, like China, do not have these problems. They instead have long-term strategies and systematically execute them. That we can no longer do this points to the real reason for our national decline. Unless we can collectively envision and work toward the same common future, our national decline is guaranteed. American exceptionalism? Hardly. Instead, America has evolved into a nation that promotes systemic national dysfunction.

And unless you care a whole awful lot about our future and demand these kinds of politicians, your future, your children’s future and our nation’s future will only get bleaker. As for my pension: I had best not count on it, or Medicare, and maybe not even Social Security.  The sad truth appears to be that our nation’s glory days are over and we are in for a long and painful decline. In fact, it is already well underway.