Three Lessons to Apply to the Debt Ceiling Discussions
The countdown to August 2 continues. On that date, the USA’s bumped up public debt ceiling must be effective to avoid more embarrassment, and higher borrowing costs.
A Washington Post/ABC poll shows the public agrees with the Obama administration’s view of a spending cuts and tax increase package. Still, Tea Party Republicans want to cut and cap spending, and agree a balanced budget amendment. If we set aside politics briefly, does this seem like the responsible thing to do? Surely, it does, to me! Even a recent CNN/ORC poll showed 66% agreement with a balanced budget amendment. However, I do not think most people understand that behavior changes will be needed to do this.
I pray USA law makers take on board and apply these three lessons I learned while operating as a CFO and senior business executive:
- When you find yourself in a hole stop digging - Will Rogers, actor, author, humorist, pundit (1879-1935).
- Delay is the deadliest form of denial - C. Northcote Parkinson, British writer, historian, economist (1909-1993).
- If you set out to be liked, you would be prepared to compromise on anything at any time, and you would achieve nothing - Margaret Thatcher, Former British Prime Minister - (1925 - ).
If your young adult child “maxed-out” his credit card, over, and over, and over, and you bailed him out each time, would he learn to handle money responsibly? Would you work with him to “cut” spending, “cap” spending, and teach him how to work with a “balanced budget?” Wouldn’t you do this because it’s the right thing to do? Surely, you would not yield to his pleading for more, and compromise, "split the difference," and allow him to continue spending?
Politics aside, Tea Party folks are right on target. I pray they continue their stance and not compromise. Sometimes, the worst decision is a compromise; the best is to do the right thing.
How will the government learn to be responsible with taxpayers’ money if they keep taxing, spending, and taking on more debt? They won’t!
Delay Is The Deadliest Form Of DenialContinued on the next page