This evening I would like to talk about our economy. As most of you know, whether our economy has been booming, stable or on a downturn, we Americans have been spending too much money. Our spending has become so acute, we have gone into debt.

Basically, our debt is in two parts: the deficit the federal govcernment creates by selling bills and bonds and notes, and the balance of trade deficit American consumers and businesses create by spending more than they save and buying more than they produce.

The federal government has a choice to not spend more than the amount of taxes it receives. If a shortfall is expected, three things can be done: taxes can be raised, programs cut or money borrowed by selling treasures.

The least desireable way to raise money is to sell treasuries. This is true even if the dollar is used as the world’s main currency and interest rates are low.

There was a time when selling treasuries was good for America because mainly Americans bought them. But today most Americans have no savings.

Too many of our securities have been purchased by foreigners. Selling securities makes it easier for the government, usually upon the whim of a president, to start a war taxpayers do not want to fund, always against a weak opponent posing no threat to America.

It is no coincidence that as we have been selling securities to fight unnecessary wars, the infrastructure of the country has deteriorated. What is really necessary, the improvement of our infrastructre, has been denied funding. What is really unnecessary, wars against weak opponents, has received lavish funding.

Upon taking office, my administration has ended our childish wars. You the taxpayers are paying off these bills. This is the first step toward improving the economy. The second step toward improving the economy is to sell securities to repair and build roads, sea ports, airports, railroads, bridges, schools and hospitals. At first, the securities will be bought mainly by foreigners. But as our infrastructure and economy improves more American will have the money to buy securities and also the money to pay taxes to finance our infrastructure.

Because we need new infrastructure does not mean we should look forward to shipping frivilous products on our highways or to hurrying down a faster road to the mall. Our improvements are intended to encourage new industry so we have more to export and need to import less.

Improved schools provide talent industry needs. Improved roads decrease the cost of shipping and the amount of time in storage. Faster communication means mistakes are less costly and new ideas can bring profit faster.

With this efficiency and the enthusiasm that goes with it, I hope we will produce more than we consume and as individuals save more than we spend. It is also my hope that within ten years we will have a trade suplus. That means that if an emergency occurs we will be able to afford a tax to pay for it. It also means that if we need to issue treasuries, the treasuries will be purchased by Americans.

I have not mentioned what to do with our savings besides using them for a national emergency. There are also personal emergencies.

And too, there are people who are eager to buy homes and to start businesses who need to draw upon the savings of others. The more we have saved, the more we can loan each other and the lower interest rates will be.

But personal savings alone will not be enough. When companies profit, it is better to give raises to employees and pay dividends to stockholders than to needlessly expand the company, invest outside of a company’s expertise or to speculate on foolish investments, for consumer purchases account for 2/3 of our economy.

I want to end saying that we are making great progress in eliminating the federal deficit and that the government has responsible plans for the future. I sincerely hope that businesses and consumers pay off their own frivilous debt while practicing a similar restraint and concern for the future that we in Washington are seeking to do.

Copyright © 2025 by David Vaszko