Obama must let the economy shrink

For too long, economists have fallen in love with their mathematical models of certainty and have ignored how poorly these models reflect the real world. Both Bush's economic advisers, who wanted to emphasize trickle-down tax cuts to America's biggest corporations and our wealthiest citizens, and Obama's economic advisers, who wish to cut taxes on working Americans and increase government spending tremendously to revitalize the economy, have it wrong. The problem we have is too much debt-financed consumption. And yet the proposed solution by both parties is to finance more consumption with additional debt.

Economic growth in America, and for much of the world, during the last 10 years has been somewhat illusionary. Increased consumption by both individuals, corporations and the government that funded this economic expansion in the United States was financed with an increase of total debt, from $25 trillion 10 years ago to $60 trillion today. They have all spent beyond their means and used debt to purchase things they could not afford. This is not sustainable.

I'm glad there are some out there with the courage to say this. The question is, do we all have the strength of character to suck it up and take our medicine? I doubt it. We'll just postpone our day of reckoning another decade or so and strap our grandchildren with the bill.