As third President, Thomas Jeffferson used all his power to bring the nation’s $112 million dollar debt back down to earth. The founding father was known as a maniacal believer in reducing the national debt, something he felt if left untouched would lead to “unrest and revolution.” Still, doing so meant reducing government spending by nearly 70% - from $9m to less than two!
But cutting the federal gut, the process of eliminating full swaths of the apparatus, was actually a prospect Jefferson, the anti-Federalist, relished.
And so, truly, began the Republican party and the country’s insistence on fiscal policy – oddly abandoned in the last decade. Still, Jefferson’s moves meant a drastic reduction of federal role and power and most notably perhaps the complete dismantling of our navy. A choice proven disastrous twelve years later as the British ran across the White House lawn in the War of 1812.
Point is that for Democrats to succeed in Novermber, they must acknowledge this deeply rooted American trait and cater to the will of the people, old and new. This is not just the Tea Party but over 200+ years of economic theology and practice. This battle is not fresh, it dates us back to the beginning, to Hamilton and the founding financial principles.
So start by reducing the deficit, which indirectly and directly affects the national debt. Reduce it by a single dollar and you gain leverage over the oppositions argument. Reduce it by $2 and you double the leverage, like a splint beneath a giant boulder. Always easier to make progress $1 at a time.
In this regard, perhaps, the current Administration has two distinct advantages: improvement and cash.
For one, the economic outlook could continue, and should, to improve. Indicators are favorable in no small part because of the injection of capital at the most investment-wise moment. Assets acquired via the bailouts are returning to us in kind.
Bottom line here is that Obama took a chance, took out a bet on America. And it is proving to be a very wise decision, both for taxpayer and country, hell, even for the globe as a whole. BusinessWeek does an excellent job of making the case.
The other benefit is in cash, nearly $500 billion in stimulus funds that have, as of yet, to be disbursed. Hold that golden war chest, gold ticket, then deliver it at the best possible moment in the form of a tax rebate or even more simply, to reduce the deficit…by three dollars!
Because if deficit and/or debt reduction arrives before November, you neuter the central argument of the Tea Party via the descendants of Jeffersonian philosophy and policy. Average Joe’s don’t understand ‘deficit-spending’ yet know in personal terms what ‘debt’ means. In fact, voters get touchy about deficits when they, themselves, are cash-strapped.
In the end, Jefferson was half right. His insistence on reducing debt yielded results but also robbed America of the opportunity to invest in itself, its future and stability and at a time of needed growth. Deficit spending had, in fact, helped America grow into the 1790’s (by taking on state debts) and would once again prove vital in the 1930s.
Truth is, with a little fiscal policy, it is possible come winter to meet T.J. and his legacy somewhere in the middle. Possible and necessary, yes…if you want to win.
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I am a Fugitive From the Law…
In Arizona, that is.
I am guilty of looking and being Hispanic -although I am a natural born citizen.
But can you believe it? By simply entering the state, I am subject to search and seizure, even arrest if I forgot my wallet in my other pants.
Anyone who thinks this won’t keep myself and anyone even remotely Latino-looking out of the state is, well, white and from Arizona. And hey, blacks can be Latino so I would advise against them visiting the state as well.
Truth is, after denying Martin Luther King Jr. Day, we looked twice at the state, wondering its intentions and motivations. Now, we simply won’t look again at Camelback or the golfing in Scottsdale or John McCain (what did he get for his soul, I have to wonder).
We won’t look, no, and we won’t visit for that matter. ALL of us. And that’s not a small few.