A Positive Net Worth for the US Government: The Case for Fiscal Responsibility
The concept of a government’s net worth is a critical factor in understanding its fiscal health and future stability. As an SEO and economic analyst, I explore the notion of whether the United States government could and should have a positive net worth, and the consequences of not having one.
Understanding Government Net Worth
Traditionally, governments do not have net worths in the same way individuals do. However, the assets accumulated by the government, such as federal lands, natural resources, and infrastructure, far outweigh its debts.
Historical Perspective and Keynesian Economics
Following the principles of Keynesian economics, advocating for fiscal responsibility in times of good economic performance could prevent the detrimental boom and bust cycles that capitalism often creates. Instead of running a deficit at all times, running a surplus during good times and a deficit during bad times can help even out these economic fluctuations.
The Modern Debacle: Wealth Redistribution and Inequality
In the modern era, wealthy individuals and corporations have advocating for and even taking control of policies that run deficits all the time. According to a cynical view, these individuals believe that a portion of the future can be taken for the present. The rationale, in their view, is simple: 'Screw the future, I will be long gone and won’t face the consequences.'
As a result, the wealth redistribution has shifted significantly. Banksters and billionaires have influenced legislation, bought legislators, and even the Supreme Court to their own benefit. This has led to even more severe boom and bust cycles, with the future looking bleak. One can only imagine a possible 30-year bust coming down the road, with these individuals sipping Mai Tais in bunkers, on yachts, or safely in their graves with monuments and colleges named after them.
The Role of Money in Politics
Money in politics has dramatically changed the landscape. Since each US dollar is entitled to free speech, the voices of those with fewer dollars are drowned out. This inequality in representation ensures that policies are not in the best interest of the general public, but of the wealthy few.
Assessing the US Government's True Net Worth
When properly accounted for, the assets of the US government, including federal lands, national parks, buildings, infrastructure, and natural resources, place the government in a position of positive net worth. Federal lands alone constitute an impressive 28% of the country’s total landmass, a vast reservoir of economic value.
Conclusion
To achieve long-term fiscal stability, the US government should adopt a more holistic approach to net worth and fiscal management. By valuing and making the most of its vast assets, the government can prevent the cyclical nature of boom and bust, ensuring a more stable future for all.