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- Fred Su Letter, 6-27-20
Author: Sean Roach - Scholarship Recipient, May 2004
"Scholarship Essay"
"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasure. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result being that a democracy always collapses over loose fiscal policy..." - Alexander Tyler, 1778
Some might wonder whether or not this prophecy is becoming a reality in America. After the New Deal programs of FDR, Americans were given a taste of how they could take advantage of government supported social programs. By the time of Lynden B. Johnson's Great Society programs in the 1960's, the government had assumed the responsibility for the welfare of the lower class. Today, our country faces a 7 trillion dollar deficit and, despite the implementation of Keynesian economic policies throughout the century, our economy continues to slip away from the prosperity that used to set our nation apart from the rest of the world. Also, as our national debt increases, so does the amount in interest that we pay each year. For the fiscal year of 2004 our nation will have added $143 billion to our debt just with interest. America's leaders must become more fiscally responsible for the future of our economy.
Perhaps the greatest problem facing economic reform is that it would demand that the government drastically cut its spending. Unfortunately, the state of politics today prevents this from becoming a reality because candidates are rarely elected on a ticket of cutting social programs, military spending and possibly increasing taxes. The only way to improve the economy is to give American consumers and businesses back the money that government so inefficiently spends on social programs.
Citizens have to be weaned off the government so that they can take responsibility for how and where the American dollar is best spend. Adherence to a "Trickle down" economic policy similar to that of Regan's presidency would help achieve this. This decrease government spending there would be less demand for credit, resulting in lower interest rates which would encourage investment by Americans. This, coupled with a decreasing in government regulations, would help American businesses operate more efficiently, thus promoting increases in production and the development of new technologies. In this way, businesses would hire more workers instead of the government paying the unemployed.
In the last month, Alan Greenspan announced that the fiscally conservative tax cuts at the start of President Bush's term are beginning to take hold and improve the economy. Hopefully this will demonstrate the positive effects of fiscal conservatism to Americans. Nevertheless, tax cuts by themselves cannot solve our budget crisis and, unless coupled with spending cuts, could actually make the situation worse. If both Democrats and Republicans aren't willing to be more frugal and responsible with America's money then America businesses and our economy will continue to suffer.
©2002-2012 Northwest Business Club
Some might wonder whether or not this prophecy is becoming a reality in America. After the New Deal programs of FDR, Americans were given a taste of how they could take advantage of government supported social programs. By the time of Lynden B. Johnson's Great Society programs in the 1960's, the government had assumed the responsibility for the welfare of the lower class. Today, our country faces a 7 trillion dollar deficit and, despite the implementation of Keynesian economic policies throughout the century, our economy continues to slip away from the prosperity that used to set our nation apart from the rest of the world. Also, as our national debt increases, so does the amount in interest that we pay each year. For the fiscal year of 2004 our nation will have added $143 billion to our debt just with interest. America's leaders must become more fiscally responsible for the future of our economy.
Perhaps the greatest problem facing economic reform is that it would demand that the government drastically cut its spending. Unfortunately, the state of politics today prevents this from becoming a reality because candidates are rarely elected on a ticket of cutting social programs, military spending and possibly increasing taxes. The only way to improve the economy is to give American consumers and businesses back the money that government so inefficiently spends on social programs.
Citizens have to be weaned off the government so that they can take responsibility for how and where the American dollar is best spend. Adherence to a "Trickle down" economic policy similar to that of Regan's presidency would help achieve this. This decrease government spending there would be less demand for credit, resulting in lower interest rates which would encourage investment by Americans. This, coupled with a decreasing in government regulations, would help American businesses operate more efficiently, thus promoting increases in production and the development of new technologies. In this way, businesses would hire more workers instead of the government paying the unemployed.
In the last month, Alan Greenspan announced that the fiscally conservative tax cuts at the start of President Bush's term are beginning to take hold and improve the economy. Hopefully this will demonstrate the positive effects of fiscal conservatism to Americans. Nevertheless, tax cuts by themselves cannot solve our budget crisis and, unless coupled with spending cuts, could actually make the situation worse. If both Democrats and Republicans aren't willing to be more frugal and responsible with America's money then America businesses and our economy will continue to suffer.
©2002-2012 Northwest Business Club
