A New Age of Self-Reliance
As the Independence Day Holiday approaches, forty-two of the fifty American states are facing the prospect of government shut-downs and massive program cuts as they enter the new fiscal year. In fact, state finances are so bad that the National Association of State Budget Officers are calling it an unprecedented national crisis. The combination of low industrial production, a deflated housing market, high unemployment rates and declining tax revenues have put state lawmakers between the proverbial “rock and a hard place”. State Assemblies across the nation have steadfastly refused to approve tax increases on already-overburdened individuals and companies, yet few lawmakers are willing to endorse the kind of cut-backs in social programs necessary to bring budgets into balance.
The financial morass that most of the states will face in the coming fiscal year is a classic case of the “chickens coming home to roost”. For several decades now, states have seen their budgets swell due to a vast array of subsidies and social welfare programs that were intended to help the less fortunate but have only fostered a mentality of dependence on the state. In many cases, states opted to continue, even expand, programs that had dubious value, but placated potentially troublesome special interest groups.
Since the various states have no authority to “print” money (like the federal Government), and since tax increases are being fought “tooth and nail” by state legislatures, the only answer is to cut spending across the board. This will mean that families will be paying more for tuition at state-supported colleges and universities, that state owned highways and bridges will not be repaired or resurfaced, that social programs to help the elderly or children in poverty will be eliminated, that subsidies for utility payments and food purchases will be drastically reduced, and that people will be forced to rely less on government to meet their daily needs.
Although the reduction in state budgets will hurt many individuals in need of assistance, it may also be a much needed wake-up call that we , as a nation, have become far too dependent on government assistance in our daily lives. Out of this financial crisis may come a great opportunity for Americans to stop the run-away tide of government spending, and to begin a new age of greater self-reliance. Maybe it is time for each and every American to stand up and say “Yes I can”.



