From the Desk of the President & CEO:
While many of us believe too much government is counter-productive to the overall well-being of the world, no government has a very detrimental effect as well. The debacle playing out in our nation’s Capitol, leading to the shutdown of our government, is a prime example of the lack of leadership by all parties and political posturing with no thought to the toll it takes on the people and economy of our country.
If the shutdown is short-lived and an agreement is made to fund our government, the economic impact may be minimal, but the damage to morale is substantial. The longer this plays out, the worse it becomes. Mortgage processing will be delayed. Buyers and sellers will be put in limbo. Consumer spending will decrease as uncertainty sets in. Investors will flee the market. All of which leads to a shrinking of our economy, hurting us all.
The next few weeks are even more critical. Not only do we have a leadership vacuum in Washington where Congress cannot find common ground on how to fund the government, we face another standstill on raising the debt ceiling. We are set to hit our debt ceiling in mid-October, and the need to raise it will set off another round of political ping pong and possibly force another government shutdown. If Congress and the White House are unable to reach an agreement on raising the debt ceiling, we will default on our debt as a nation. The government will be hard pressed to be able to pay Social Security and Medicare, let alone any other bills, and our economy, which is still recovering from the recession, will likely crash.
I stand on principle, and I stand for promoting best practices that support and lift up our great nation, but what is taking place in Washington is political theatre that does, and will continue to hurt the very people the government is to protect. When government leaders fail to lead, the entire system breaks, and we all pay too great a price.
President and CEO
The Five Star Institute