Problem #1: “Americans have had an “employee mentality” all their lives and it has been engrained in our minds from previous generations. Few take personal responsibility; not expecting the government to take care of them.”
[America's free enterprise system] creates wealth. During the last two centuries, the U.S. became the world's richest nation as it embraced an economic system that promotes growth, efficiency, and organization. GDP tripled per capita from 1900 to 1950; then it tripled again from 1950 to 2000. The wealth didn't just benefit a few. It spread throughout society, 68% of Americans own a home-- the highest percentage on record. Three-quarters of Americans drive their own cars.
You see, there is no need to take money from the rich and give it to the poor. We would have to do that in a system that deprived individuals of their freedom to go out and participate in free enterprise, but that is not America's system. America embraces a free market system which is free of government interference except when it violates personal life, liberty, and happiness. Let us not confuse the current economic crisis as a need to change our economic system. Our economy appears to be heading south not due to a faulty system, but because of rapid changes in commerce and large amounts of debt.
As the figure illustrates, our economy is shifting in a way it has never experienced in the past. A large majority of all the businesses declaring bankruptcy is due to a shift in commerce known as the e-commerce shift. Examples of this same shift in history are the inventions of the telephone, automobile, electricity, radio, TV, microwave oven, and VCR. In 1999, e-commerce was 0.5% of sales. In 2008, it was 11%. In ten years e-commerce grew 2200%. We must not make the grave mistake of transforming our economy to a form of socialism that has never worked anywhere and has no record of statistical growth just because our way of doing business is temporarily shifting.
Problem #2: “Spending more than you make puts you in bondage.”
According to CNNMoney.com, the total amount of jobs lost in 2008 was roughly 2 million. In that same year government jobs increased by 250,000. Now we look at that as a good thing; the government is hiring, yay! But here's the problem, increase in government jobs means more money needed for payroll, meaning more taxes for you. The problem is the government thinks the solution to not having enough money is to tax you more and spend it on government. This philosophy of thinking is detrimental to our country. This problem not only lies with the government, but with the people as well. Everyone seems to be pointing both fingers at the government and exposing their loose spending. Now don't get me wrong, I am a strong proponent in strict government spending and less governmental interference in people's affairs, but the fault does not only lie with the government. Treasurydirect.gov shows the current public debt held by the people is close to $7 trillion! Compared to intra-governmental holdings of $4 trillion. I believe this shows the real problem is with our people and spending money that they don't have.