Vail Daily letter: The road to ruin
July 10, 2010
Were we to define gross domestic product as a measure of a country’s overall economic output, which is the market value of all final goods and services made within the borders of a country in a year, the United States would boast a product of over $14.6 trillion dollars (2008 figures).
To say the least, this is a very heady statement and a testament to the principles of capitalism.
Were we, in turn, to define gross domestic debt as the sum total of the market debt of government, corporations and of individuals, that figure would be 360 percent of GDP, with the debt of government alone being 90 percent of GDP.
To say the least, this is a classic definition of insolvency and a testament to the principles of socialism.
What is even more confounding, the projected new debt (a deficit of $1.6 trillion ) for this year alone will be almost as much as the new debt of the rest of the governments of the world combined!
What with the enactments by Congress and approval of the president of the now infamous TARP and health care reform bills to date, growth of the GDP is stifled, and the increase in the GDD is well on its way to fomenting a total market collapse.
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We now have projected the passage of the so-called “cap and trade,” financial and immigration reform bills that are on the table for consideration – the cost of which we have yet to calculate or ascertain.
In our little corner of the state of Colorado, we have a representative (Jared Polis) and a senator (Michael Bennett), in concert with others, who are responsible for the ruinous increase in the GDD for the year 2010.
They both voted for TARP and the health care reform act, and I dare say that had they read those bills (and comprehended them) they may very well have refrained from supporting them.
Come November, the re-election of Messrs. Polis and Bennet would be to condone their disregard of the travails of the GDD. To address the issues of unemployment, small-business stimulation and a sound housing policy would require the election of more conservative representatives to these positions – those statesmen with a GDP mindset in the stead of the follies of the GDD upon which Messrs. Polis and Bennett seem to be bent.