Many say the U.S. is going broke, that we can’t support the level of spending and borrowing in which we’re now 
engaged. Like GM, AIG, Fannie and Freddie, the U.S. has accumulated more obligations than it can cover. Does that mean the president or congress may someday be representing us in bankruptcy court?
Maybe. The United States has always had a Triple A rating, and now that rating is at risk of being downgraded. The rating firm, Moody’s has warned that the U.S. is dangerously close to losing its AAA status.
How did we get here, what would happen if our credit rating does decline, and what must be done to turn things around?
With my homebuilding background, I compare our situation to that of so many builder/developers I’ve seen in the past. The economy would be good, houses would be selling, builders making lots of money, and they would overextend themselves. They seemed to have the attitude that, “If I think it’s a good idea, it must be a good idea, for everything I touch seems to work out profitably.” They would purchase properties they couldn’t manage, begin projects without proper research, and hire people to do work they used to do themselves.
We’ve all seen that type. Egos and confidence inflated to absurd proportions, they lost their sense of reason, forging blindly ahead as if they were invincible; and we all know what happens next. The market stalls, businesses collapse, and the builders are soon standing before a bankruptcy judge.
In many ways the U.S. resembles those failed builders. We’ve taken on more obligations than our economy can support; we’ve brought people into high positions in government who don’t have the same values upon which the country was founded, people with their own agenda, some of whom are only looking to enrich themselves and their friends; and we’ve made some serious mistakes.
We’ve expanded our role around the world, assuming we knew what was best; we’ve taken away personal responsibility and made it the responsibility of our kindly Uncle Sam. After all, we’ve won two world wars, our economy has been the envy of all, and our country offers a lifestyle that attracts immigrants from around the world. Many, especially politicians, seemed to think we could do no wrong. But we can—and we did. Shortsighted “leaders” spent borrowed money in order to feed their and the country’s ego, and average citizens turned their heads; it was easy just to let it all happen, for sometimes it meant our lives were less stressful, our responsibilities assumed by a compassionate Uncle.
And in attempting to create Shangri-La for our citizens and to force our vision of Utopia onto those who have no concept of such a way of life, we’ve gone beyond a sustainable plan. We’ve truly mortgaged our future in an attempt to blindly pursue a doctrine that was growing exponentially to unsustainable proportions. Such a journey was, from the beginning, doomed to failure. That’s where we are; the question remains: Where are we going?
The solution to our problem is both painful and slow, like a treatment for chronic illness. It will take years, perhaps decades to recover from past mistakes; and requires a therapy that will be vigorously opposed by all those whose vision extends no farther than the next election or next paycheck. We can recover, but to do so, we must reevaluate everything we do. We must learn to live within our means, both individually and as a nation. Our cure will involve eliminating many programs that compassion begs us to continue; it will require patience, prudence, and resolve. If we can rediscover those traits, we can enter a new era of strength and prosperity; if we continue on our present path, we just may get to see the bankruptcy judge.
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