Advertisement

Community Commentary: 'American exceptionalism' will prevail

July 04, 2011|By Chriss Street

I believe that due to American exceptionalism, the United States is on the verge of another dramatic period of economic growth. Our nation is far from perfect, but we learn from our mistakes, change dramatically and move on.

After three years of failed socialist efforts by governments around the world to deficit spend their way out of economic recession, America is reembracing its exceptional belief that sovereignty belongs to the individual and not the political ruling class.

America's new commitment to deficit reduction was made clear by the stark contrast last week between President Obama's address to the American people on negotiations with Republicans to cut $4 billion in budget deficits through spending reductions or tax increases, versus the anarchy of Europe's efforts to address the Greek sovereign debt crisis.

Advertisement

Just as Obama was emphasizing that debt reduction was important for U.S. job growth, Athens rioters were burning down the Greek Finance Ministry as punishment for their socialist leaders accepting another $150-billion bailout from Germany and France, after Greece squandered last year's $100-billion bailout.

The protests are being led by Greek Communists affiliated with PAME, the consortium of 280 trade unions that dominate Greek politics and whose member's salaries are being paid by the bailouts. The protestors erected gigantic banners on the Acropolis hill overlooking Athens, stating: "People Have The Power and Never Surrender — Organize — Counter Attack."

To an American outsider, watching the trade unionists bite the hand that has been feeding them, at the rate of $300 million per day, seems like a bizarre sense of entitlement. But an examination of the consequences to German and French banks —if there is a default by Portugal, Italy, Ireland, Greece or Spain (the PIIGS of Europe) — demonstrates the socialist borrowers have achieved "too big-to-fail" dominance over their German and French lenders.

There are really only two sets of policies nations adopt in the hope of generating economic growth: trust in the chaos of markets to create more supply, and reliance on government management to create more demand. When given the choice of betting their future on go-it-alone "trust in chaos" versus the communal "reliance on management," the vast majority of people around the world will choose management. Once citizens accept that increased government spending is good, politicians will answer with more and more spending is better.

Daily Pilot Articles Daily Pilot Articles
|
|
|