(Center for Vision and Values) -- Once again there is panic running through the halls of Congress, the Oval Office and in the chattering classes that make up mainstream media over the prospect of shutting down the federal government. Most of the panic is a result of the inability of politicians to reach an agreement on government spending. If we hope to begin to recover true prosperity, then making real, significant cuts in government spending should be a top priority. Only true, substantial reductions in government spending will free necessary capital for entrepreneurs to use in productive investment. This investment, in turn, will allow for sustainable economic progress.
We are in the fiscal mess we are in because, since the early 1970s, tax revenues have been unable to keep pace with government spending. Real government spending has increased almost twice as fast as government revenue. In 1970 our total government debt equaled $371 billion. Today it stands at $16.8 trillion. Even if we adjust for inflation, federal government debt has increased more than eight times what it was in 1970.