Given the continued belief in a failed economic theory, the recent economic events were inevitable. As a student of the U.S. education system (public school and both public and private college), I was taught that government has a role in helping manage the economy. A famous English economist, John Maynard Keynes, posited that the government could improve the economy by spending taxpayer money during soft economic times to stimulate the economy into a recovery, benefiting all. Predictably, this was widely accepted by two types - those who want government aid, and the elected political elite. In fact, they both promoted it.
Why wouldn't they? For the first group, what could be better than other people paying your bills? And for those in elected office, what could be better than a famous economist telling everyone that they would be better off by giving you more power and influence in Washington?
Over the past several decades, government has continued to "stimulate" the economy through spending. Now the government strongly influences everything it doesn't control outright. Each year, it has taken more debt to create less Gross Domestic Product. The public is becoming aware that we have both a miserable economy and unsustainable debt. Have we gotten what we deserve? I feel sorry for those who are suffering from a bad economy and the trouncing of IRAs. This includes me. But who have we voted for?
Over the coming months and years, we are going to suffer from the economic mistakes of the past. We have borrowed our future income for years to come. Where we end up will depend upon whom we vote for now. If we continue to elect Democrats and Republicans, it is all but assured we will continue down the same path. No country has ever spent and borrowed itself into success. The two parties talk differently but do the same things. We must dismantle most of what the federal government does and hand those responsibilities to the states. Let the states compete in all areas but defense. Let them compete for the best education system. Let them compete on health care, without federal mandate. Let them compete on tax structure and regulation of business without federal interference. If the states want federal involvement, let it be voluntary. If it were, the feds would have to be cost-effective or the states would not bother. Over time, the states with the best tax structure, health care system, and education will be successful and people can choose to implement those better systems into their states, or move to the well-managed ones. Let lousy government fail and languish. This is what the Founders intended. This is not what we have. If we did, we would have avoided this entire problem.
• David Y. Cantwell is an executive vice president of Jones Lang LaSalle, an international commercial real estate firm. He lives in Genoa.
