Victor Davis Hanson

President Bush’s current approval ratings are about 32 percent. Only one in four Americans approves of the Democratic-controlled Congress.

So why are we so upset with our political leadership? Despite the housing slump, it is not the worst of times. After all, the economy is still strong, with low inflation, low unemployment, low interest rates and respectable growth.

The Iraqi war remains unpopular, but good news has emerged recently about the surge and Iraqis joining Americans against the terrorists. We haven’t had another 9/11, and the Europeans — especially France and Germany — seem far friendlier.

Instead, our anger with our political leaders more likely originates over money — or rather the lack of it. Americans believe that their rich country is either going broke or is seen as a global spendthrift that can’t pay for what it charges. And the worry over insolvency gets worse at a time of conflict — which, as the Roman statesman Cicero once remarked, is often decided by money, “the sinews of war.”

We are currently servicing $9 trillion in aggregate national debt. China and Japan alone hold over $1.5 trillion in U.S. dollar reserves — the result of a general American trade deficit that usually runs about $700 billion per year.

The euro — pegged at less than 90 cents to the dollar in early 2002 — is now over $1.40. And the historically weaker Canadian dollar now roughly equals the value of our own.

Oil prices were around $22 to $28 in 2000, and are now over $80 a barrel. Over the past seven years Middle East oil exporters — many hostile to the United States — have raked in well over $1 trillion in windfall profits.

The annual budget deficit is shrinking but still will come in this fiscal year at about $160 billion. Economists and government officials, of course, attempt to explain away all this red ink. Creditor nations, they remind us, simply lend us back money at relatively cheap interest to keep buying their goods. So they can’t really call in their debts without ruining their own best market.

Where else are Japan and China going to bank their profits but in the politically stable, transparent and honest United States — an atoll of security in a world of political upheaval and corruption in Africa, Latin America and Asia?

Meanwhile, our weak dollar supposedly makes American goods more competitive and keeps employment here strong as we export products and services to dollar-laden customers. In any case, despite European trade surpluses in the last few years, the United States economy has outperformed the European Union’s, and our standard of living remains much higher.

Victor Davis Hanson

Victor Davis Hanson is a classicist and historian at the Hoover Institution, Stanford University, and a recipient of the 2007 National Humanities Medal.