Mazzei Minute: 11/04/22
The problem with blowing out your budget is the inability to respond to emergencies when they arise. Currently, America is in a weakened fiscal state, which can be perilous for our national security.
The invasion of Ukraine offers a compelling lesson for the connection between fiscal sanity and national preparedness. Absolute dictators often pursue more power and control when they see a window of opportunity, causing harm to untold millions, sometimes when you least expect it.
What if the absolute dictator of China, Xi Jinping, decides to take advantage of our current weakness and invade Taiwan? The global economic disruptions from Putin’s war in Ukraine have been significant. The damage to the American and global economy would be massive if China were to take over Taiwan.
Walter Russell Mead, a foreign policy expert writing in the Wall Street Journal, warns that U.S. “political, diplomatic and economic stability in East Asia can come only after a return to something like the military predominance that 15 years of ineffectual American policy has frittered away.” Team Trump refocused the military priorities and slightly increased spending, but Team Biden wants significant reductions in inflation-adjusted defense spending going forward, says Mead.
Biden's addiction to lowering interest rates, wasting money overseas on nation-building, and approving massive unnecessary spending after the pandemic has left our fiscal house in shambles. We just passed $31 trillion in borrowing, and the Congressional Budget Office projects that annual interest payments for our debt could vault from an astonishing $399 billion to $1.2 trillion by 2032.
The only way to assure peace is through strength, and you can’t be strong when you’re broke and up to your neck in debt.