The National Debt

A 21st Century Parable

A successful businessman was chosen to be CEO of a large corporation. When he took control, the economy of most of the world was emerging from a severe downturn in business. He was charged with getting the company on track as quickly as possible.

The newly-appointed CEO and his management team knew that the best way to prepare for and take a lead in the rapidly recovering economy would require a major investment in material, processes, and personnel. He took the plans and the budgetary requirements to the Shareholders and the Board of Directors. Both groups approved the plans and expenditures.

The CEO and his team implemented their plan, Within a couple of years, the company had regained … and exceeded … the position of industry leadership it had before the economic downturn. The changes had required a large investment that had to be borrowed, but the company’s credit was good. The Shareholders and Board of Directors had approved the borrowing at the same time they had approved the budget.

The company was renewed and prospering. Everyone was happy … until it was time to make payments on the loans. A small but vocal group of Shareholders began to complain about the debt. “You can’t pay those bills,” they screamed. “It’s too much.” When the CEO explained that the Shareholders and Board of Directors had approved the expenditures and the necessary debt, the boisterous Shareholders ignored him. When the conflict leaked to the Press, economists warned that the company might be in financial trouble. The rebellious Shareholders dug in their heals. The company’s recovery was in jeopardy.

Why is the House Threatening to Sink the Economy?

It took 15 votes for Kevin McCarthy to be elected Speaker of the House of Representatives. House Republicans hold a 9 vote majority over the Democrats. Twenty House Republicans refused to vote for McCarthy until he made major concessions to their far right demands. Speaker McCarthy’s leadership hangs by a thread and the extremists have a big pair of scissors.