Paper Money Makes Voters Happy

“We will soon run out of that nothing with which to make no down payment.”

That’s the way, some forty or fifty years ago, Canby Balderston, former dean of the Wharton School of Finance and later one of the governors of the Federal Reserve Board, concluded a carefully documented talk on the reckless financial practices then beginning that have since left most of us with plenty of nothing.

Despite the warnings of true conservatives like Canby Balderson and Paul Volker, former Chairman of the Federal Reserve Board, Republican politicians, beginning with President Nixon could not resist the temptation to buy elections with ever-expanding extensions of credit.

The paper money in your wallet is labeled, “Federal Reserve Note.” Everytime the U. S. borrows money, it issues promissory notes of the Federal Reserve or some other federal agency; the more it borrows, the more money in circulation, and the more happy voters. President Bush was a master practitioner of this art, engineering tremendous tax breaks for his wealthy supporters while dishing out giant wartime spending contracts to please their profiteering hearts.

But then there comes a time of trying to live on nothing—like Ron Bouchard reports in the Atlanta Journal-Constitution of August 9, 2010:

“I’ve worked my entire life. I’m a decorated Vietnam War veteran who served my country in three combat tours. I have been nationally recognized with outstanding achievement awards throughout my employment history, and I worked for decades without a single sick day. . . .

“My wife and I took our four sons to church every Sunday. I paid my taxes, voted in elections and got involved in community service. I always felt there would ultimately be a reward in life for working hard, . . .and doing all the right things. . . .

“I lost my job in January, due to the recession. Since then I have applied for more than 1,200 jobs. I’ve sent out countless resumes and cover letters. I’ve scanned the job ads, I’ve gone to job fairs, I’ve networked, and I’ve done all those things that the “experts” advise. . . . It’s all been just a big waste of time.

“It’s hard to believe the reality of just how bad the unemployment picture these days is unless you’ve actually experienced the frustrations of it all on a daily basis. Almost half of the Georgia workforce has been unemployed for six months or more. . .

“One potential employer boldly posted a notice saying, “Those who have been unemployed for over six months need not apply.” It’s hard to believe that this is happening in our country. . . .”

Do you remember the last time the United States ran a budget surplus — in the Democratic Clinton Administration?

Did you notice the cost cutting and debt reduction provisions — in the recent Democratic Health Care legislation?

photo credit: flickr, SqueakyMarmot