All Falling Down...

I've become a big fan of Victor Davis Hanson's commentary over the last few months. Mr. Hanson, to quote his homepage, is "the Martin and Illie Anderson Senior Fellow in Residence in Classics and Military History at the Hoover Institution, Stanford University, a professor of Classics Emeritus at California State University, Fresno, and a nationally syndicated columnist for Tribune Media Services. He is also the Wayne & Marcia Buske Distinguished Fellow in History, Hillsdale College, where he teaches each fall semester courses in military history and classical culture."

Mr. Davis' latest column can be found at Pajamas Media, and it is an excellent summation of the problems our nation is facing thanks to the overspending by both the Bush administration and Congress, and now the Obama administration and Congress.

A few quotes that jumped out at me follow, but the entire column is well worth reading.

When Obama talks of a trillion here for health care, a trillion there for cap-and-trade, it has a chilling effect. Does he include the cost of interest? Where will the money came from? Who will pay the interest? Has he ever experienced the wages of such borrowing in his own life? Did he cut back and save for his college or law school tuition, with part-time jobs? Did he ever run a business and see how hard it was to be $200 ahead at day’s end?

What destroys individuals, ruins families, and fells nations is debt—or rather the inability to service debt, and the cultural ramifications that follow. When farming, I used to see the futility in haggling over diesel prices, trying to buy fertilizer in bulk, or using used vineyard wire—when each day we were paying hundreds in dollars in interest on a “cut-rate” 14% crop loan.

The difference between the 5th century BC and late 4th century BC at Athens is debt–and not caused just by military expenditures or war; the claims on Athenian entitlements grew by the 350s, even as forced liturgies on the productive classes increased, even as the treasury emptied. At Rome by the mid-3rd century AD the state was essentially bribing its own citizens to behave by expanding the bread and circuses dole, while tax avoidance became an art form, while the Roman state tried everything from price controls to inflating the coinage to meet services and pay public debts.

Integral to public debt are two eternal truths: a public demands of the state ever more subsidies, and those who pay for them shrink in number as they seek to avoid the increased burden.

Why the pessimism? I think there are a few truths that transcend politics and remain eternal. In life as a general rule, debt has to be paid back, and with greater pain and anger than it was to borrow it. Bullies do not respect magnanimity, but tragically interpret it as weakness to be exploited rather than to be admired.