Beech Tree News Network

I don’t usually have a big interest in events occurring in the political arena. But, Congressional action – or inaction – resulting in the recent partial government shutdown caught my attention.

Currently, gross federal debt as a percentage of gross domestic product (GDP) is the highest (102.7% at the end of 2012) it has been since the late 1940s. 2011 was the first time the debt had exceeded 100% of GDP since the aftermath of World War II (http://en.wikipedia.org/wiki/History_of_the_United_States_public_debt). Gross domestic product is the monetary value of all finished goods and services produced within a country's borders in a specific time period and is usually calculated annually. According to CBS News, the U.S. national debt has exceeded the $12-trillion mark: “Divided evenly among the U.S. population, it amounts to $38,974.34 for every man, woman and child” (http://www.cbsnews.com/8301-503544_162-5686644-503544.html). So, I understand (1) that we owe a lot of money, and (2) that a solution is problematic.

In 2012, our country was ranked the most powerful country in the world (http://www.mapsofworld.com/world-top-ten/world-top-ten-powerful-countrie....), and of the 2013 top 20 billionaires in the world, 13 are from the United States. However, Standard & Poor’s estimated that the shutdown took $24 billion out of our economy, and the Fitch credit rating agency is reviewing its AAA rating on U.S. government debt for a possible downgrade (Andrew Taylor. October 17, 2013. Government reopens after deal. Park City Daily News, pp. A1, A5.). The bill that ended the government shutdown will keep federal agencies functioning through January 15.

I believe we have people in our country who could help develop a plan to get us out of this mess. Warren Buffett, one of our wealthiest citizens, said “…he thinks it would be absurd for American politicians to do anything to damage the country’s reputation for paying its bills that has been established over the past 237 years,” and “…both political parties should agree not to use the debt limit as a bargaining chip in the future because it is ‘a political weapon of mass destruction’” (http://nypost.com/2013/10/16/warren-buffett-calls-debt-limit-a-political...). Buffett also commented, "It would be a colossal readjustment of the world if people lost faith in the United States government" (http://finance.yahoo.com/news/buffett-calls-threat-not-raise-113136046.html). Perhaps Mr. Buffett and others with his financial wisdom should advise the House and the Senate Committees on the Budget.

Will we face another government shutdown in January or February? I hope not. But, if we do, it will certainly be a signal to clean the Congressional house.