The latest bit of madness on the horizon is a multi-billion dollar bailout of the states by the federal government.

If approved, this will push the federal deficit above the annual gross national product of the United States, meaning, we as a nation of people, will owe the world more than we produce in a single year.

Unlike the federal government, which can print money out of thin air, the states like individual citizens, must balance their budgets and maintain rainy day funds to get that state through periods of declining revenues like we find ourselves in today.

Some states have done a deplorable job of funding their rainy day funds. Taxes paid by citizens of the respective state, is what funds these rainy day accounts.

Discussion regarding the moral hazard of rewarding bad behavior has yet to be outlawed, albeit it is considered gauche in some political circles.

If the consequences of bad and ineffective fiscal policy are averted through federal bailouts, there will be no reason for people to change the way they and their politicians do business.

People with addictions generally reach the point of dealing with their addiction when they have no other avenues left to pursue. Why should anyone believe that state and local governments will behave any differently after the federal taxpayers bail them out? They won’t.

The behavior of the humans involved must be changed or a cycle of perpetual bailouts will be necessary every time there is a downturn or calamity in the economy.

The federal government is responsible for protecting constitutional rights, maintaining armies for national defense, ensuring the stability of our currency, conducting foreign policy and promoting the general welfare of the nation.

The failure of a specific political jurisdiction is the responsibility of the citizens of that political jurisdiction.

Tim Bible

West Salem