A few months ago (yeah, I know), I picked up a copy of The Medieval Military Revolution (Barnes & Noble 1998 – originally written in 1995 — Edited by Andrew Ayton & J.L. Price). Been sitting on my shelf, inherited from TR, yet unread. I was looking for something I didn’t find there, but I came across this thought in the editor’s introduction:
Those that live by the sword shall die by the sword, and this can be applied in a sense to governments and even states as well. States went bankrupt, at least technically, through the cost of war, and the fiscal strain of long-term involvement in warfare was perhaps the single most important threat to political stability even in this most turbulent of periods.
In this case, the editor is writing about the mid-16th to mid-17th century. But every century has its nations, and the realities of economics and defense don’t disappear over time.
When I was in high school economics, I can remember people trying to argue that somehow the US’s national debt just didn’t matter. We were too big to fail, or by some bit of magic we could borrow as much as we wanted and nothing would really happen . . . it was bizarre. Didn’t make sense then, and still doesn’t. I suppose we could always stiff our creditors in the end, but even that has its consequences.
The US is a mighty wealthy nation. Wealthy people can waste a lot of resources and not feel the consequences the way poorer neighbors would. But there are limits to our wealth. We can’t just magically spend on anything we decide we want — even we must pick and choose.
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And anytime we borrow? We have to pay it back out of future wealth. The only time borrowing fuels growth is when the money borrowed is invested in something that makes us more productive. The hallmark of a chronic debtor, of course, is the conviction that every debt really was necessary, really did make the debtor ‘better off’.
But reality isn’t so.
In the current economic quagmire, households, businesses, and governments that had previously acted prudently and with fiscal restraint are managing fairly well. A neighbor was laid off, but fortunately he had savings, was living beneath his means — he has a little cushion to get by while he looks for a new job. The greatest crises today are coming among those who were massively in debt a year ago or more, and don’t know how to get by without yet more debt. (Or, of course, stiffing their creditors.)
–> Not talking here about those families and businesses that did everything ‘right’ during the flush times (which were not, for them, all that flush), but still struggle today. Not talking about those whose reverses have been far greater than anyone could plan against. Prudence today won’t withstand every possible storm tomorrow. But it sure improves your odds.
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So I’m a bit alarmed by the current rush to spend, spend, spend. Oh and it isn’t a democrat’s problem — I had a pit in my stomach prior to the presidential election, knowing that I could count on either party to be just as irresponsible. I’m alarmed by things like trying to create new government-sponsored insurance programs *for people who already have health insurance*, when we haven’t sucessfully put together a program for those who don’t.
–> Frankly I’m really dissappointed in the democrats, because they aren’t actually coming through on helping people who actually need help. Tons and tons of spending on vague programs to ‘stimulate’. Er, how about we just get everyone who needs food fed? Houses for *actual homeless people*?
A more personal example: I’ve a friend who has an undiagnosed breathing problem. She *stops breathing*. She can’t afford a doctor’s visit to diagnose the problem. Mmn . . . how ’bout we stimulate the economy by making it possible to get in for a doctor’s appointment if you’re a person who can’t work because you can’t, uh, breathe reliably?? That cash would trickle into the pockets of a receptionist, a maintenance guy, a lab worker, an MD — *and* we’d have a person who might be able to breathe all the time? And thus be able to go get a job? Hmmn?
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End of the rant. Have a good week. Soon as I find my lost book, I’ll have a review up on the other blog. Meanwhile am trying, as always, to clean the house, educate the children, exercise the ol’ mind, body & spirit, and all that other vocation-y stuff. Hope y’all are doing well. Oh, and hey, to keep you busy during my slackerlyness, here’s another cornucopia of social-issues rants: http://www.frontporchrepublic.com/ . Thanks to Bethune Catholic for the link.