| In Shakespeare’s play, Hamlet, Polonius | | | | estimated $200 million unfunded obligation for its |
| counsels his hotheaded son, Laertes: “Neither a | | | | employee retirement program; and the cities of Santa |
| borrow nor a lender be, for loan oft loses both itself | | | | Barbara and Solvang have both been reported to be |
| and friend, And borrowing dulls the edge of | | | | using reserves to pay current operating costs. |
| husbandry.” (In this context, “husbandry” | | | | |
| means careful or thrifty management; frugality, or thrift.) | | | | Commenting on federal debt, Terrence Jeffrey |
| | | | | observed, “Thanks to the compounded negligence |
| It’s interesting to note that “in the days when | | | | of four successive generations of politicians in |
| Hamlet was first staged (around 1600) borrowing was | | | | Washington, D.C., however, every family in America is |
| epidemic among the gentry, who sometimes neglected | | | | now on the hook for $455,000 over and above what |
| husbandry to the point where they were selling off | | | | they owe on their own mortgage, or student loans, or |
| their estates piece by piece to maintain an | | | | credit cards or can expect to pay in taxes under the |
| ostentatious lifestyle in London.” (Shakespeare | | | | current tax system.” (“Your generous $455,000 |
| Quotes, enotes.com). | | | | loan to Uncle Sam,” Conservative Chronicle, |
| | | | | February 7, 2008). |
| So, here we are, over 400 years later, dealing with the | | | | |
| same issue here in America, that is, excessive | | | | The proposed 2008-09 federal budget of |
| borrowing. When it comes to husbandry, it’s | | | | approximately $3 trillion amounts to around |
| pretty obvious that little has changed. We have a | | | | ten-thousand dollars for every man, woman and child |
| profligate government and a spendthrift society, with | | | | in America, 300 million strong. In addition to the annual |
| growing numbers of people, businesses and | | | | budgets that presumably are funded with the money |
| government entities going broke. | | | | the federal government extracts from taxpayers, |
| | | | | there is also the nation’s little recognized obligation |
| Several recent articles illustrate the situation: | | | | of some $9 trillion dollars that our esteemed political |
| | | | | leaders have incurred without voters’ consent. |
| A Wall Street Journal article about the state of New | | | | |
| Jersey noted, “In 1990 the state was $3 billion in | | | | David M. Walker, Controller General of the United |
| debt. Borrowing has since grown at a compound | | | | States, has been speaking around the country for over |
| annual rate of about 13%, and now the state is $32 | | | | two years, delivering the message that the U.S. is |
| billion in the red. Throw in unfunded pensions and | | | | rapidly going bankrupt. He believes we have only |
| health benefits for retirees, and that number swells to | | | | about 10 years before that happens. But, even with |
| $113 billion, or $3,400 for every man, woman and child | | | | the nation’s chief accountant openly warning |
| in the state. That’s three times per capita higher | | | | everyone who will listen, no one is paying attention. |
| than the national average, making New Jersey the | | | | |
| nation’s fourth-most indebted state.” (Wall | | | | Mr. Walker is not some “Chicken Little” crying, |
| Street Journal, February 23, 2008, page A8) | | | | “The sky is falling,” he’s the real deal, |
| | | | | perhaps the most qualified person in America, telling it |
| In California, during a Senate Floor debate on the day | | | | like it is. As “the nation’s chief accountability |
| the state budget was sent to the governor (August | | | | officer and head of the U.S. Government |
| 27, 2007), State Senator Tom McClintock said, | | | | Accountability Office (GAO),” his mission is to help |
| “Today we set in motion events that will require far | | | | “… improve the performance and assure the |
| more difficult and painful decisions starting just five | | | | accountability of the federal government for the |
| months from now in what is likely to be a much worse | | | | benefit of the American people.” (Wikipedia) |
| economy. I am afraid that with this vote, for the | | | | |
| second time in a decade, this state is being driven to | | | | Everywhere we look throughout the nation, we see |
| another Gray Davis-sized fiscal crisis that this vote | | | | people, businesses and government entities that are |
| makes inevitable for exactly the same reasons: Lack | | | | upside down financially, seemingly with no way out |
| of restraint in good times combined with a lack of | | | | other than bankruptcy. But, so far, that doesn’t |
| discipline in bad times.” (NOTE: California’s | | | | seem to be slowing anyone down, individuals and |
| proposed 2008-09 fiscal year budget was recently | | | | politicians alike, in their race to the poorhouse. |
| reported to be $16 billion in the red.) | | | | |
| | | | | What happens when we get there, you may |
| On the local level, the City of Vallejo, California, is on | | | | wonder? |
| the verge of filing bankruptcy, the first city in the | | | | |
| state’s history to do so. The City of San Diego is | | | | It won’t be pretty. |
| has approximately $1.9 billion in unfunded liability for its | | | | |
| employee pension plan; Santa Barbara County has an | | | | © 2008 Harris R. |