Responsible countries such as Germany, France and the United Kingdom decided to act with fiscal discipline and took dramatic measures to ensure their solvency.

Finally accepting they had to live within their means, these nations imposed austerity upon their people to balance their books.

Back in Washington, D.C., most politicians stood lockstep in silence. The White House, at best, sent a “No biggie, guys” message on the airwaves.

However, more credible members of society took a less optimistic stance. Moody’s — a prominent credit rating agency — sternly warned Congress it would downgrade the U.S.’ bond rating if we did not get our fiscal house in order in two years.

The question is why we face the same fiscal nightmare as Europe.

In my view, our superpower arrogance is responsible for much of our $14 trillion national debt.
America is essentially a talented — but spoiled — child. The global credit markets recognize our unsustainable debt but always has had an underlying faith in the strength of our economy. Our flexible and resilient free markets allow us to manage deficits others cannot.

But that still requires a credible plan for deficit reduction from Congress in the coming months. And to balance the budget, you need to go where there is money.

Roughly 88 percent of the federal budget is dedicated to entitlement spending. Historically, we have made that work. The government always has spent about 19 percent of our Gross Domestic Product, or GDP, while roughly matching it with the tax revenue to fund it.

We make a promise to provide for the poor and elderly, but we ultimately believe individual freedom is what brings prosperity to the plurality of our citizenry.

Bond holders, as private citizens or foreigners, lent the Department of the Treasury money to pay for our entitlement programs. Our government paid them interest on the money they borrowed, and Americans cashed their benefits.

Unfortunately, the last 30 years of governance has not lived up to the long-standing tradition of limited government our Founding Fathers intended. Our country currently borrows 40 cents for every dollar it spends.

The nonpartisan Congressional Budget Office, International Monetary Fund and Goldman Sachs all agree the root of this structural deficit is an explosion of entitlement spending — mainly in Medicare, Social Security and defense.

Unsurprisingly, in our discourse we have had false debates regarding the federal deficit. Politicians lie to the American people about what government actually can afford. Fights over whether to expand taxation or reduce spending by 3 or 4 percent are made within the constructs of intellectual dishonesty.

Cutting the Environmental Protection Agency or raising the top marginal tax rate a few points cannot solve the size and complexity of our deficit.

Our fiscal reality demands we scale back entitlement programs and have people retire a year or two later than they historically have. It might not be expedient politically in a campaign, but it is the only way to do it.

For all the talk of America’s decline, the most credible argument made against “Brand USA” is that we are incompetent with our finances. We must decide whether or not to allow that perception to linger.

Ultimately, our debt will be resolved in an epic showdown in the 112th Congress. For the first time in his presidency, President Barack Obama will have to make significant reforms and painful cuts to entitlement programs.

Republicans, after winning the right to dance with the president in the midterm elections, will share in that responsibility.

We only can hope a deal is struck to save the republic.

Ameek Singh is a State News guest columnist and an international relations junior. Reach him at sodhiame@msu.edu.