Compare this as an analogy. You are sitting in your agrarian home with a stockpile of wheat. This is your food. You know that a famine is coming. What do you do? Do you say, “Well, let’s eat all our wheat now, because there won’t be any more later”? This is idiotic. What you do is tighten your belt, ration the wheat, eat less, and grit your teeth while plowing on (literally).
Similarly, when the nation is facing a recession or worse, the government should not go on spending like there is no tomorrow. It has been far worse than this before. Our current economic woes are nothing compared to the Great Depression. The problems happened when government soared it to take control, slapped a wage-price freeze, and everything disappeared. More government control is a sure way to ensure that our economic woes last as long as possible, and are as bad as possible.
What the government should do is drastically cut spending (as in, all pork barrel spending, special projects, etc.), and then cut taxes. The government should cut spending by about 50%, and then cut taxes by about 30%. These are just round figures, of course. Everyone should be paid their wages, but all excess spending should be cut. Of course, in my opinion, that also means that government should get out of schooling, Social Security, and welfare. However, that doesn’t look very likely in the near future. What they can do is to halt excess spending in the short-term projects, thereby tightening their girths.
The problem here is that many people, seeing a recession coming, think that government should get bigger so as to solve all the problems of the people. Government becoming bigger is called tyranny. It will always result in more control and less accountability. Government does not have a good track record of solving economic problems by becoming larger. Every time that happens, the economy goes down the tubes.
Whatever one thinks of R.J. Rushdoony (and I am no theonomist), he certainly got this one right: unbelievers hate freedom, because they do not want the responsibility that goes with it. They want the credit when things go right. However, they do not want the blame when things go wrong. So is it with government and with individuals. Freedom requires responsibility. It also requires constant vigilance, lest those freedoms gradually be eroded. I am not saying that our woes can all be solved by cutting taxes. The ultimate problem is human sin, to which the solution is the gospel. What I am saying is that there is a measure of wisdom that the government needs to exercise right now if the economy is not going to melt down completely.