Balanced Budget Amendment…Is the Time Right?

With all the large spending bills in the last year and some change, and with more on the way, such as potential health care reform, a jobs stimulus bill, etc, it has finally got me to thinking….  Are we ready to finally have a serious discussion on a balanced budget amendment for our Constitution?

I don’t know about everyone else, but I’m really beginning to think that this Democratic Congress’s PAYGO rules really are nothing but a lot of cloak and dagger stuff.  With a $787 billion stimulus, approximately $80 billion for jobs creation, more than $500 billion for health care reform, and however much cap-and-trade will cost.  PAYGO, in my opinion, really isn’t getting the job done here.

We have a $12 trillion debt, and Congress, just earlier this week, passed a bill to increase our debt limit so our government can continue to operate.  This fiscal year alone we have a $1.5 trillion debt according to usdbetclock.org.  This issue becomes even more complex once baby boomers begin retiring and collecting social security benefits and also enroll in Medicare.  We already have so many unfunded liabilities in these entitlement programs, and with not enough younger workers to keep the system afloat, we are coming up on some dire financial straits.

Here in the Commonwealth of Virginia, we have a balanced budget amendment in our state constitution.  Our biennial budget is required to be balanced, and if we have any shortfall from tax revenues, the state is required to cut spending on programs, or find other ways to save costs.  This approach has allowed our Commonwealth to continually be named as one of the best states ran in the country.  I, as I’m sure many other Virginians, are pleased to know our state isn’t allowed any deficit spending in our budget.

I truly believe such an approach would work on the Federal level and would bring more fiscal responsibility to our country.  Our elected leaders on Capitol Hill would think several times before enacting spending legislation.  Now, how much support this amendment would have with our liberal Democratic friends and their Progressive allies, that remains to be seen.

Speaker Pelosi and the President and his OMB Chief Peter Orszag have indicated their willingness to address our ever-increasing deficit, but I realize, with a progressive liberal agenda, that our current leaders envision, a balanced budget amendment doesn’t necessarily fit into those plans.

I truly hope our political leaders can truly begin to discuss with a sense of seriousness a balanced budget amendment to our Constitution.  Not only would it bring us a more fiscal security with the Treasury, but it would also have benefits for our domestic economy, that should eventually trickle out to the global economy.

What Happened To The Concept of Personal Responsibility?

I’m a big fan of the concept of personal responsibility.  If I make poor decisions, I expect to be responsible enough to handle the consequences without the prospect of being insulated from them.  The recent string of government bailouts has convinced me that the government is not willing to allow anyone to fail or suffer from poor decisions, particularly in the business world.

But today, I’m not focusing on corporate responsibility, but that of personal responsibility, so I would like to concentrate on the home mortgage issue.  When the whole sub-prime mortgage mess blew up, I couldn’t help but ask myself the following questions:

1. Why would banks approve lending such risky loans to obviously risky individuals?
2. Why would people take out mortgages they clearly could not afford?

Banks share responsibility for this mess as much as those individuals who took out these mortgages.  I don’t understand why banks would even approve risky loans to risky people.  I also don’t understand why people would assume mortgage payments that they couldn’t afford.  And then, when a crisis emerges because of these terrible loans, banks and individuals expect to be bailed out for their poor decisions, and homeowners are encouraged to not leave their homes, even though they are delinquent on payments.

In this case, when individuals clearly have made poor financial decisions, why should the government be responsible for fixing their problems?  Why can’t they accept the consequences of making a poor decision?  Same thing with the banks, as they share equal blame here in my opinion.  Why, why, why, issue risky loans to risky borrowers?  It does not make sense to me.  And then to have the government provide the banks TARP money to avoid bank failures?  Now do I think that those who bank with these troubled institutions, that have met all their financial obligations, should lose their money because their bank didn’t make sound financial and business decisions, no!  However, I do feel that if banks make poor decisions that they should be allowed to fail.  As much as I think those who bought homes they couldn’t afford should not receive assistance from the government.

Plus, is it such a foreign concept to pay more for something than you can afford, especially when you’re talking about a large investment such as a home?  If I can only afford $1,000 a month for a mortgage, I’m not going to get a mortgage for $1,400 a month.  Why?  Because I won’t be living there for very long and I would expect to lose my home because I don’t make enough to satisfy the financial obligation.

But the government doesn’t believe in that.  They believe that people should not be held accountable for their poor decisions, that the government should serve as a safety net.  With that being said, my largest fear, going forward, is that everyone is going to feel entitled to government assistance no matter how much they fail.  Being responsible for one’s actions is what makes us adults.  I feel that with continued government bailouts, we are saying that the government won’t let you fail and learn from your mistakes, because you have a safety net, so let’s encourage poor decision making.

It frightens me so much that the government won’t allow people to be responsible for their actions and that it’s ok to be dependent on the government to bail out people.  It’s a scary precedent because the direction our country is moving is complete dependence on the government to solve all our problems, and that will result in big brother being involved in all our daily decisions because WE CAN’T BE TRUSTED TO MAKE THE RIGHT DECISIONS.

Beltwaybandit’s Top Moment of 2008

Since today is the last day of 2008, I believe it is fitting to post today my top moment of 2008.

May 19-26, 2008

Sandals Whitehouse, Jamaica.  On May 19th, my lovely bride and I made the trek down to Jamaica.  We arrived late on May 19th for our wedding/honeymoon.  It was a long day, the 19th; however, we finally made it to Sandals Whitehouse on the evening of the 19th.  The following day, we spent the entire day laying out on the beach.  May 21st was the big day, where we got married on the beach.  We spent the rest of the week just lounging about and enjoying the nice Jamaica weather.  This week in May 2008 was truly the best week of the year for me.  It’s a time I will always remember, and something my wife also will remember for the rest of our lives!

Beltwaybandit’s Top Five Moments of 2008 Part 4

Here we go, my fourth best moment of 2008.

November 4, 2008

Even though I definitely don’t agree with most of Barack Obama’s policies and politics, I can’t help but choose election day this year as one of my top five moments of 2008.  I couldn’t believe the turnout this election cycle.  Never before had I ever had to wait in line for more than an hour to cast my ballot. 

What was even more impressive to me was that for the first time in our history, we elected an African-American as president.  I knew we would eventually do so, it just didn’t dawn on me that it would happen this year.  As I mentioned previously, even though I don’t agree with Barack Obama’s politics, I definitely see and understand the historical significance of this momentous event.  This is an event that I will never forget.

Beltwaybandit’s Top Five Moments of 2008 Part 3

Here we go…  Moment #3.

April 2008

Verizon Center, Washington, DC.  For the first time in 5 years, my favorite hockey team, the Washington Capitals, made the playoffs by winning the SE Division on the last day of the regular season.  I don’t think I had ever been more excited about the Caps than I had on that day when the Caps clinched.  Sure, we drew the Flyers and lost in triple overtime in game 7, but the fact remains, we made the playoffs, and thus, expectations were risen for this current season, which sees the Caps in 1st place in the division.

During the playoffs, the Verizon Center was rocking like nothing I had ever seen before.  The crowds were large, and the atmosphere awesome!  I still can’t believe it that the Caps played in the playoffs.  The final loss in game 7 left a very sour taste in my mouth; however, unlike the loss to the Lightning in 2003, it wasn’t a feeling of despair, because I know that the Caps have a great future with the talent on the roster.

The Caps making the playoffs this season has truly been one of the highlight moments of 2008 for me.

Beltwaybandit’s Top Five Moments of 2008 Part II

Here we go, another top moment of 2008 for me.  Remember, they are in no particular order, aside from the last one I will post about, that’s the best moment of 2008.

May 18, 2008

Staunton, VA, Mary Baldwin’s Commencement.  I woke up early this Sunday, and made the trek with my brother to Staunton, VA, for Mary Baldwin’s commencement, as my sister graduated from that fine all-girl’s institution with her bachelor’s in history.  It was a beautiful day for a commencement even though it was drizzling slightly at the beginning of the ceremony.  I can’t think of a day where I was prouder of my sister.  She worked hard these past four years, and it was great to witness such a wonderful accomplishment for my little sister.

We made it through the commencement ceremony, helped move my sister’s stuff out of her dorm room, had lunch, and we made our way back home.  My sister is definitely going to have a bright future now that she’s completed her college degree.  This day was definitely one of the highlight days of the year, and of my life.  Good job, Munchkin!!!

Beltwaybandit’s Top Five Moments of 2008 Part One

Wow!  What a year 2008 has been!  I have had quite the year and for the end of the year, I would like to begin a series of posts, over the course of the next few days, to document what I think are the best moments of the calendar year.  These will be in no particular order, with the exception of the last one I will post, which will be the best moment of 2008.  So here goes…

May 10, 2008

Fredericksburg, VA, UMW’s Centennial Commencement.  It was a wet and rainy day on this morning, an important morning for me.  I woke up early to make the trek down to historic Fredericksburg, VA, to receive my Masters in Business Administration.  I began the program in May 2005, and completed my academic requirements in March 2008.  Such an important and happy day for me this year.  My whole family was present, along with my wife.

It was pretty much your standard commencement.  A lot of people were in attendance, and the obvious, fighting for a parking spot.  We got started on time; however, with the rain, it seemed to go on forever.  That, and Senator John Warner, our commencement speaker, spoke for what seemed like all morning.  Everyone was pretty wet by the time the ceremony concluded.  Fortunately, the weather cleared up in time to get some pictures of the event.

It definitely a huge honor to be a member of the centennial class of UMW, and it is something I will cherish and tell my kids and grandkids, in the future.  It is my hope that having earned an MBA, it will open many doors of opportunity for me in 2009 and beyond.