Americans are increasingly losing faith in the ability of our nation’s institutions to address our economic challenges. High levels of unemployment, declining housing values with rising rates of foreclosures, increasing levels of poverty and a decline in families’ real income define today's economy. All this uncertainty has resulted in many Americans strongly believing that our nation is in serious decline.
Fueling the uncertainty to a great degree is the continuing political impasse in Washington. We have a President and Congress deeply divided by party lines seemingly unwilling to compromise in order to address the current economic crisis. At this time, America seems destined to follow in the footsteps of Europe leading to economic ruin and resulting in a permanent lowering of our standard of living. With the necessity of immediate action so evident, why is there such a lack of leadership in Washington?
Adding to the current environment of discontent, is the perception by many Americans that several distinct groups have granted themselves economic immunity through special privileges and access to power in order to shelter themselves from the worst effects of the downturn. Americans have traditionally believed our nation offers opportunity for ambitious individuals and economic success was open to the majority of citizens that apply themselves in positive and proper ways. These traditional notions are being challenged by today's headlines revealing a seemingly corrupt and rigged system whereby well-connected political insiders have special access to economic success. This is the rise of crony capitalism and it is evident for all to see.
While Washington's influence regarding economic matters has always played a key role in our country, the model was more decentralized in the past. In the past, economic decision-making was defused across the country and more prominently residing in the hands of the private sector. The private sector traditionally played the primary role in the allocation of our economic resources resulting throughout our history in a rising standard of living for all Americans.
The private sector’s major strength is that it promotes an environment of competition. Great wealth is created by a free market system bolstered by competition and enhanced by freedom so that individuals can take maximum advantage of opportunities that may arise. A free market system is characterized by flexibility and efficient allocation of vital economic resources driven by the profit motive. The public sector economic model is ruled by the concept of social justice and dominated by Big Government resulting in an economy that limits flexibility, innovation and individual initiative. What is created is a society with limited opportunities available to the average citizen and an overall lower standard of living for all those without “inside” political connections.
The Public Sector on both the Federal as well as State and Local levels have increased their control of power over the economy exponentially through the influence of ever increasing taxation, spending and regulation. With government so extraordinarily intertwined in American’s economic and daily lives, political influence plays a key role in determining our nation’s economic winners and losers.
Due to the poor economic environment, many individual Americans have had to make significant financial cutbacks in their lives. The motivation for making these changes is driven by absolute necessity due to the declining personal financial circumstances of many people. The recent failure of the Congressional Super Committee to agree on any degree of economic reform is the latest of many recent failures of our elected representatives to take significant and meaningful action regarding the economic crisis.
Many reasons can be offered as explanations for these failures to decisively act. An important explanation that cannot be overlooked is that the majority of our elected officials are positioned literally as insiders. The motivation by our political leaders to act more decisively to agree to solutions for our nation’s economic challenges is tempered by the fact that our elected officials are themselves generally suffering limited personal financial consequences in our current challenging economic environment.
As compared to the average American they are representing, our elected politicians are much wealthier, are better paid, have access to better healthcare benefits, enjoy a more generous pension and retirement plan. All of the benefits listed are all paid for by the American taxpayers. More importantly, these same elected representatives work directly with Interest Groups and can enact policies that are often beneficial to their own personal careers and personal financial fortunes. In addition due to the power of incumbency after election to office, they often enjoy a level of job security that would be the envy of most Americans.
Enjoying an extraordinary lifestyle, it is no wonder our elected representatives consistently fail to demonstrate the courage and determination necessary to provide leadership regarding solutions to fixing the economy. Our public officials have personal access to too much money and privileges – causing consistent failure to act on the tough issues. Maintenance of the economic status quo while unacceptable to the average American is acceptable to the majority of our representatives. The reason for this is that they create for themselves ever greater access to personal fortune by consistently increasing their power by expanding the size and influence of government.
Running for political office is a very expensive endeavor. Members of the House face reelection every two years and Senators face reelection every six years. Millions of dollars are necessary to run for election and reelection and this money for campaigns must be raised on a continual basis. With the Federal Government playing an ever more prominent role in almost every major issue of the day, therefore influencing the outcome of legislation and regulation is crucial to protecting a whole host of numerous organized interest groups. A mutually dependent relationship has developed linking elected public officials and lobbyists. This ongoing conflict of interest and level of codependency is a major contributor to the failure of the system to uphold the interests of the electorate versus the interest of these groups. These Interest Groups are sources of crucial funds required for these elected representatives to run their increasingly expensive and numerous election campaigns.
The most effective solution for addressing our economic challenges starts with electing to office representatives truly committed to downsizing the size and scope of Big Government. Replacement through the electoral process of current elected officials committed to the maintenance of the status quo is crucial and fundamental.
The challenge is to establish an alternative and independent power base outside the current system able to elect candidates dedicated to imposing fiscal responsibility upon government. The rapid rise of the Tea Party movement since 2009 and its great influence on the Congressional elections of 2010 is a powerful example of what needs to be done.
The Tea Party’s decentralized structure and grassroots foundation provide a large advantage in raising funds to support candidates to run for office. The majority of funds for the support of candidates can come from a large number of individuals each contributing modest amounts. Tea Party contributors are motivated to support candidates that are dedicated to the much needed proposition of limited government through reduced government spending, lower taxation, reduction of national debt and the Federal deficit.
Citizens still have the power in this country - the key is to exercise it. The issue of greater citizen participation in the political process goes beyond merely voting. The rapid growth of the Tea Party movement is a current example of proactive direct citizen action. More importantly, it reflects a significant discontent among mainly middle class citizens across the country. Tea Party members represent the full spectrum of Republican, Independent and moderate Democratic voters. They aim to reclaim government from the established elites, the insiders and to change the status quo. It is truly a grass-roots effort dominated by local organizations interconnected by the New Media.
Their efforts will lead to a Government more reflective of middle class or Conservative views and most importantly break the monopoly of current politicians mired in a system dedicated to increasing their own power by growing the influence of Big Government. The Tea Party’s ultimate objective is to reclaim a level of greater freedom for each American to act as responsible citizens and expand the role of private institutions and decrease the role of Big Government. These actions will create a better future for all of us. We need the power of individual Americans not the American Government to come to our rescue.
