Three Governments I Admire
Do you live in Switzerland, Norway, or Singapore? You’re in luck. Your political leaders are competent. Switzerland's constitution centers power at the regional level. Its Federal Government has less authority. This is why the Swiss have responsible fiscal governance. Populist tribes at the Federal level don’t get money to waste on suboptimal programs.
Norway has the good fortune to sit atop massive oil fields. It supplies domestic energy consumption from renewable sources. Norway sells its oil windfall to other countries. It controls one of the largest sovereign wealth funds in the world. Responsible fiscal governance means Norway has more options to deal with challenges.
Singapore's pragmatic leadership moved it from poverty to affluence in one generation. It doesn’t run budget surpluses, but its federal debt load is reasonable. Its creative government leadership leads with pragmatic foresight. One example: Singapore is the largest land owner in Michigan’s Upper Peninsula. Singapore’s timber forests in Michigan exceed the size of its home geography. Smart resource acquisition.
Contrast this with my home. The United States has a dynamic private sector, but this dynamism doesn’t extend to its Federal Government. It runs massive budget deficits. The country's last budget surplus was during the final year of Bill Clinton’s second term, more than a quarter century ago. Misaligned political incentives have driven the country's debt load over $39 trillion. This official debt figure understates reality. It doesn’t include a $29 trillion shortfall in Social Security. Nor does it count the future commitments it has made to retired government employees. The United States true debt load exceeds $100 trillion.
Yet, I remain optimistic about the future. Everything still seems possible in the United States. When the Trump fever breaks, the country may elect a left-wing populist.
The 2028 Presidential election may allow more rational and pragmatic leaders to emerge. That's my hope. I want the United States to treat the rest of the world with respect, run budget surpluses, and return to principled global leadership people in other countries admire.