The Economic Crisis: Who is doing the right thing?

There is a war going on in Washington D.C. between ideological extremists in both the Democratic and Republican parties. The result of it is that no serious problems can be solved by our government. It is the recognition of that problem that led me to vote for Barack Obama in the last election. I saw him as a person capable of compromise in the name of progress. He is liberal in his beliefs about what is best for our country, but centrist in the way he governs. The problem is that too few in government share this approach.

Now, as we near a major economic crisis brought about by our government's history of being generally irresponsible in its management of government finances, all politicians are being put to the test.

If our government lets the deadline for raising the debt ceiling pass without constructive action, I feel there will be an economic disaster of major proportions. If the debt ceiling is raised and no actions are taken towards reducing the national debt, the near term disaster will be averted, but only delayed. At some point, politicians have to do something about the debt issue. Delaying action only will make the pain associated with the crisis worse.

The best thing that can happen is that a compromise is found that raises the debt ceiling but implements significant measures that will reduce our the national debt. If this happens, I feel the economic recovery will be given a significant boost. If no debt reduction takes place, all of the reasons for people be nervous about spending and investing will persist and we will see only slow economic growth, if not decline.

President Obama is taking flak from many in his Democratic Party for being willing to compromise with the Republicans. Those critics want to keep the programs that are the major sources of our national debt untouched and raise taxes as necessary to solve the debt issue. Meanwhile, the Republicans are being equally uncompromising about raising taxes. Experts are saying that both actions are clearly required to solve the debt issue.

In showing a willingness to compromise, President Obama is one of the few who is putting the well-being of our country and its citizens above that of his political party and personal biases. My prediction is that, if the Republicans do not compromise, the President will reluctantly let the disaster happen or go along with raising the debt ceiling and delaying the disaster. "Caving" and "being weak" would be to support a resolution that did not require the Republicans to also compromise and tolerate some increase in government revenue to address the debt issue. I do not believe the President would ever do that. If this crisis results in an economic disaster, only those congressmen and senators who had shown a willingness to compromise will deserve to keep their jobs.

The abandonment of a free-market economy is not going to happen in this country unless a major disaster strikes. Maybe that is what some Democrats are hoping for. The total abandonment of social programs by the federal government is not going to happen (look at the civil unrest that was brewing in the early 1930's and ask yourself what would have happened if the government had NOT stepped in to help). I'm sure that this is what many Republicans are hoping for. To have an uncompromising position in this current crisis, one either has to be an ideological extremist who thinks one of these things CAN and should happen, or a person whose governing principles only center around his personal interests (keeping his job, his money, his power, etc.); I am disgusted by both varieties. Keep up the good work Mr. President.