Moral Bankruptcy in DC

Bankrupt = not enough money to pay what is owed. People/organizations that are bankrupt default on their loans. Morally bankrupt = not enough moral fiber to do what would commonly be believed to be right. When people/organizations are morally bankrupt, they are so lacking in morals they don’t know or care what is morally right.

Someone who allows the US government to go into default because of political arguments is morally bankrupt.

Although the US media is covering the possibility of the debt ceiling not being raised, many people don’t realize what that means. This is not the same as not making a car payment.  It’s seeming less and less likely that an agreement to raise the debt ceiling will be reached by August 2. It is not just an agreement that needs to be hit by that date, but it must be passed by both branches of Congress and signed by the president. If it doesn’t happen, the ripple effect will hit practically everyone:

• It will be more expensive for corporations to borrow and the stock market will take a hefty hit. When Lehman Brothers failed and the stock market crashed in 2008, the market dropped more than 21%. By all accounts, this will hit much worse.
• Individuals who depend on US government checks (Medicare, Medicaid, Social Security, EDD) may see them delayed, for how long is unknown.
• It will be more expensive (and for some impossible) to get credit. This will affect the already-hurting real estate market as mortgages take another blow.
• Other governments and entities that use the US Treasury as their base for stability or rates will be affected. The Chinese Yuan is linked to the US dollar at the current rate of 6.44RMB to 1USD. If the US is trying to hurry its move into the number two spot of global economies, failing to raise the debt ceiling is a good start.
• Finally, if the debt ceiling stalemate extends beyond a few days, the effects could be more severe and lasting.

The US economy has been coming back in a positive way since the second half of 2010. Although unemployment numbers are at times mixed, some sectors, like technology, have seen a sharp increase in job growth. At the same time, venture investment and IPO filings have increased.

Only someone who is morally bankrupt would put the economic recovery on the line just to be in good standing with the handful of people who voted them into office. It is the height of being self-centered to care more about your own short-term future, than what is necessary for so many, and it is shameful.

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