“Treasury Secretary John Snow has demanded that Congress raise the government’s debt ceiling in response to record government expenditures.

What happened to good economics? Seeking internal cost cutting initiatives and reduced spending will lead to revenue growth. We can then begin the movement towards reducing the national debt, and maintaining stable development.

The nation has never had an economy more dependent on government stimulus. The President and his advisors had to recognize their policy would not be sustainable. At what point does repairing our current economy for political gain overshadow the long term impacts that will be felt for another two or three generations! Bush abused his powers to repair the economy for Corporations at the government’s (and taxpayer’s) expense.

The stock market may be up, but wages are down. Think about it, our high paying jobs are being shipped overseas. IT is not the only sector that is being affected; financial and human resources professionals are targeted for outsourcing as well. Where does this leave us? A nation of Wall-Mart communities?

The President maintains that outsourcing is good for the nation and the economy. He then states that given a level playing field, we can compete with anyone in the world. How ironic, the “”playing field”” is certainly not level. The standard of living, and cost of living in India and other Eastern European nations are no where near what the are here. Consequently, the are able to bid for American Jobs at a fraction of the cost.

Can you see it now? Soon, corporations will be defined by a conglomerate of outsourcing agreements headed by only a small group of directors. We have the India finance department, the Romania IT division, the Malaysia human resource guys, the production facilities in central America… and the kicker: its an American based entity?

We are not far off from facing such a reality. I am aware of at least one Fortune 500 company that is already in the process of outsourcing IT, and is prospecting opportunities for finance and human resources.

So back to the demand by John Snow to raise the government’s debt ceiling… Where is the money going? Corporations have performance indicators that are so precise, they can track how much coffee is purchased, yet we are not sure why the 7.4 trillion dollar debt ceiling needs to be raised. It certainly isn’t to initiate additional social programs to reach out to single parents, or encourage kids to participate in after school athletics.

The ceiling has already been raised twice during Bush’s presidency.

Where has the money gone?

Here is the simple answer: Tax cuts and incentives to corporations and tax cuts for the wealthiest Americans.