Real State of the Union

As we approach 2009, the threat of a recession looms over our economy, our government’s finances are shaky, and we have serious problems with declining real wages, rising healthcare costs, energy, education, and other aspects of our society.

The fundamental causes of these problems are not new. They have been with us for decades, but our government has failed to even acknowledge them, let alone address them and respond to the needs of its citizens and a changing world.

With few exceptions, our political leaders are more interested in serving themselves and their political party than in doing what is best for our country. They habitually misrepresent the facts, and when they do, the mainstream press usually shirks its responsibility to report the truth.

The Real State of the Union intends to correct this sad state of affairs by providing objective, comprehensive, and reliable information about our country’s challenges and opportunities. We believe a better understanding of important national issues will be a catalyst for change, get citizens more involved with their government, and will help achieve the following critical goals.

Goal 1: Rebuild Our Economy

Everyone’s well-being depends on a strong and growing economy. Our economy may seem sound on the surface, but as explained in Thin Ice - and Melting, it has been deteriorating for at least the past 30–40 years.

If we don’t turn our economy around by curing the causes of our economic meltdown, life will get very difficult for a great many people in the foreseeable future. Although unlikely to happen, there is some chance an economic crisis could develop that would rival the Great Depression.

We have the time and resources to rebuild our economy, but time is running out and making small changes in what we do and how we do it will not work.

We need strong action and strong leadership to secure a sound economic future for ourselves and future generations. Unfortunately, our political leaders are in a state of denial and no one is proposing steps to address the fundamental weaknesses of our economy. Simply cutting taxes and tweaking interest rates won’t get the job done.

Goal 2: Restore Our Government’s Fiscal Integrity

Our federal government has treated the symptoms of our deteriorating economy by putting borrowed money into consumers’ pockets that will burden future generations and ultimately reduce our economic growth. Our government and economy cannot continue to live on borrowed money any more than any of us can live on credit cards for very long.

Somewhere around 2017, Social Security will switch from a budget surplus to a deficit, significantly increasing our government’s demand for cash to keep running. If current trends continue, the Comptroller General of the United States forecasts that by 2040 Social Security and Medicare will consume all government revenue, leaving absolutely nothing for any other government functions.

The only way our government can avoid eventual bankruptcy is through some combination of reducing spending, increasing tax rates, and, to a lesser extent, improving tax collection effectiveness. Growing our economy will help, but that alone will not be enough to eliminate the problem.

If our underlying economic and government fiscal trends continue, 2040 may arrive in 2030.

Goal 3: Reclaim Our Democracy

In a democracy, the government is supposed to look after the interests of its citizens and the country as a whole, but our government focuses more on serving politicians, political parties, and special interest groups than on doing what’s best for our country.

The force driving this behavior is money. Money is the main ingredient of election campaigns and the individuals or groups that produce campaign funds get access to politicians that gives them influence not available to ordinary people.

Citizens in a democracy should be well-informed about what is happening in their country, but our government generally keeps the public in the dark. Politicians filter and distort information to score political points, and although our government produces huge amounts of data, little of it gets to the public as useful information.

Voters should know what political candidates would try to accomplish if they are elected, but our election process is little more than a popularity contest filled with half–truths, worthless promises, and character assassination attempts that would be grounds for a libel suit in any other setting. The press adds to the problem by treating election campaigns as a game, focusing on tactics and trivialities instead of national issues, candidates’ positions, and searching for the truth.

There is a big difference between what our democracy should be and what it is. Unless we demand much more from our political leaders and the press, we cannot expect anything to change. It is OUR government, not THEIR government and we have the right to make the rules.

Available now!

Thin Ice - and Melting: Why Our Economy is Failing and How We Can Stop the Meltdown. Click here to learn about the most revealing and factual book about the U.S. economy ever written.

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