Last week’s article drew attention to the growing financial crisis in our nation as well as our state. I heard several comments this past week that it’s too far gone, not sure what can be done, or what impact can we really have on the issue. It’s no wonder that many people have these thoughts given the significance of the facts brought to light.
National debt approaching $36 trillion. (how much we owe others)
2024 national deficit over $1.8 trillion (how much more we are spending than taking in)
24-25 Louisiana budget deficit projected at $65 million.
Next three-year Louisiana budget deficits are all around $600 million or more.
While Nick Brown refers to his Saturday morning radio audience as the most intelligent listening audience in radio, I hope to shed some light on these issues to promote LPJ readers as the most intelligent readers in news reporting.
To begin, we must understand what made the nation and state successful in the first place. Whether we are talking about business, government, service organizations, or athletic teams, one needs to understand what makes it successful in good times so that one can repair it when it’s broken.
Our nation was both founded and flourished when we focused on freedom, sacrifice, hard work, service, creativity, ingenuity, and commitment. Whether we look at our nation’s founding fathers, Lincoln during the Civil War, those great leaders during the World Wars, or Martin Luther King Jr. during the Civil Rights Movement, these leaders made tough decisions, navigated through strong adversity, and sought what was best for the nation. They protected core values while promoting responsibility, sacrifice, and service.
The key to navigating difficult financial times and avoiding a complete economic collapse, nationally and within the state, will rise and fall on leadership. Will we have the leadership nationally and locally within the state to address these issues or just keep “kicking the can down the road” until we have a total collapse?
Running a deficit in your household long-term leads to bankruptcy. Running a deficit in business long-term will lead to bankruptcy and/or the end of the business. While governments can essentially “kick the can longer”, it will ultimately lead to the same place, collapse and failure.
It’s not a prime topic for candidates during elections because the answers aren’t popular. Candidates talk about cutting taxes with no corresponding talks on spending reductions. That’s totally irresponsible and just makes matters worse. Sure, we all want to pay less in taxes! However, less intake, with no reduction in spending, makes things worse. We can’t have everything we have today and pay for it. It just doesn’t add up.
Nationally, we need to go to a zero-based budget (start from nothing) and build up until we hit the revenue line and just stop spending there. Regardless of where that point is, we just must stop. That approach doesn’t reduce the debt, but at least it alleviates the deficit and starts us in the right direction.
On a state level, we are going to be forced to address higher education funding. Whether we are talking about the academic or athletic side of our university system, it will need to look different in the future. While more fundraising and revenue generation will help, the full answer must include operational and fundamental changes to reduce spending. We will not “fundraise” our way out of this financial challenge. The changes will be difficult but necessary!
Locally, our nonprofits that provide so much to the community will need to explore ways to operate more effectively with less federal and state grant funds likely to be available going forward. Local giving to these programs will be paramount to their continued impact on the community.
As you have read this article, you are likely upset.
- Upset at me for causing you to be concerned
- Upset at some elected officials over the years for allowing this crisis to happen
- Upset because you are comfortable and fear being uncomfortable
In any case, I would rather you be upset, informed, and more knowledgeable than complacent, apathetic, or disengaged! If you are upset, we still have a chance!
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