Our Current Economic State

In the wake of Dr. Michael Babula’s recent announcement regarding his bid for congress in Maryland’s 4th Congressional District, I’ve decided to take it upon myself to inform the American public of the dire situation we are currently in as a nation, and what measures we should and must take NOW in order to save the future of this country.

I'll just identify myself as a concerned American, and a freshman Political Science student at Loyola College. When I first moved to Loyola in late August, I became an avid reader of the newspaper, and I began to closely follow the current events of the United States and the world. Both my parents are lawyers, and from a young age I began to understand the need for political and legal action of citizens in our country.

I believe I can say on behalf of my generation, as well as the majority of Americans, that this country NEEDS a change. The Bush administration has gone too far. Congress has lost its direction. It’s time for change. When a country loses faith in its leaders, a political and economic storm begins to brew that is bound to shake up a nation. This is the situation we are currently facing…and if we do not take swift action as Americans, the flood gates will open. It’s not a matter of if our country will face serious long term consequences for our carelessness, rather when.

I met a man on September 4, 2007, that would change my world view for good: my economics professor, Dr. Michael Babula. Through weeks of studying and lectures, and continuing to follow current events in the New York Times, it dawned on me that there is a driving force of politics that’s most often overlooked by those who aren’t aware of its power: economics.

Currently Dr. Babula is running for a position in Congress, to represent Maryland’s 4th District. It has dawned on me after looking at the views of his opponents, that he is the only candidate to be seriously focusing on one of the driving forces of American and global politics.

Dr. Babula’s campaign website (www.babula2008.com) writes, “…the United States is set up for an impending economic collapse should a major terrorist attack occur on American soil. Foreign investors own $4.4 trillion in United States foreign debt. Shedock (2007) writes, “Even if they sell only 25% of that sum, the US would feel the pinch of hyper-inflation.” Hyper-inflation is defined as a condition in which prices increase rapidly, as currency loses its value.

We’ve heard and seen continuous reports throughout the past couple years of the housing bubble, and the failing American housing market. It has been forecasted by top economists such as Alan Greenspan that a severe recession is in the midst, and these predictions paired with the failings within the housing market are already driving away foreign investors.

As foreign investors leave, the value of our dollar drops, because fewer dollars are demanded in Europe. We’re already seeing the depreciation of the American Dollar, and the value of our currency has recently reached that of the Canadian Dollar. I can recall going to Quebec City as a child and loving the idea that I was getting more Canadian money for less American money. It’s quite disappointing to see such economic power drop with the onset of the Bush administration.

In reality, all it would take for the value of the American dollar to plummet overnight is another terrorist attack. Terror analysts across the world have declared that it’s not a matter of if another attack will occur within the United States, but when. If an attack occurred similar or worse than that on September 11, 2001, major foreign investors will withdraw their investments in the United States economy and transition it to secure commodities such as gold. Such an event, that could even happen TOMORROW, would lead to the collapse of the American dollar.

On the other hand, Dr. Babula has proposed an effective plan “to head off an economic doomsday scenario,” as seen on his website: www.babula2008.com

Resource costs such as oil must decline in the United States. How might our government go about performing such a task, when our economy is so geared on fossil fuels? The U.S. must provide grants to companies that produce alternative sources of energy, such as wind power, geothermal energy, and hydrogen. But then, a second question arises: how would we obtain the money to provide such grants?

The war on drugs in America is currently costing our state and federal governments nearly $43 billion each year, while we still witness the widespread drug-related crime across our nation. The decriminalization of drugs would free up billions of dollars that could then be recycled into a government lead effort for obtaining alternative resources.

Other options are also available to curtail the irresponsible monetary policies of our government: the war in Iraq has cost a family of four approximately $16,500. And what have we gained? Nearly 4,000 Americans killed, and one of the worst foreign policy disasters in the history of the United States. I think it’s safe to say, on behalf of the American public, that this war has got to end.

There are plenty of options on how to revive our nation’s economy, but we can no longer trust the lawyers in Washington, for we’ve seen where their policies have taken this country. We need more politicians who think with an economic-based mindset such as Dr. Babula, which is why it’s imperative that he is elected to Congress, to spark a change in the direction of the United States.

It baffles me that the current congressman representing Maryland’s 4th district, Democrat Albert Wynn, retains his position. With such a gloomy economic forecast on the horizon for the United States, Mr. Wynn does not even address the issue on his campaign website. The other candidates in Maryland’s fourth congressional district are ignoring the economy. Why are they turning their backs on the issue that matters most to Americans?

“The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to a close. In its place we are entering a period of consequences…”
- Winston Churchill