How to Brew an Economic Perfect Storm in One Easy Lesson

There’s a lesson to be learned from the economic “perfect storm” that’s brewing. It’s a lesson about how to brew such storms.

It’s easy: just take a small storm and feed it.

Each time our elected representatives, at any level of government, decide to spend what they deem affordable in light of immediate circumstances, but fail to adequately consider the wider consequences of their spending, especially the consequence that a number of such “affordable” purchases can easily add up to more than can be payed for, the storm grows a little stronger. Each time our elected representatives convince themselves that this project is worth the cost but fail to consider all the other representatives who are telling themselves the same thing about their projects, the storm grows a little stronger. And each time our elected representatives tell us that they are “going to have to make hard decisions” but fail to make them on this project, passing them down the line instead, the storm grows a little stronger.

Seen in this light, the high school project isn’t the problem; it’s a symptom. It’s a symptom of the disease that plagues the way our elected representatives make decisions. And that disease is nearsightedness.

Our representatives cannot see beyond their own projects and decisions. They cannot see far enough to realize that other representatives are making the exact same decision that they are, the decision to spend boldly (not frugally) because this project is worth the cost. They cannot see far enough to realize that all projects are worth their costs to the people behind them. They cannot see far enough to realize that all projects, together, cost more than can be payed for. Each time our leaders fail to see these things, the storm grows stronger.

Out of our nearsightedness, we have brewed quite a storm for ourselves. A nearly perfect storm. It approaches. It is nearly upon us.

Still, we feed it.

Updated 2010-02-17 16:50 with minor edits for clarity.