Does The National Debt Mean Anything?
We see debates about the national debt and the threat of shutting down the government twice a year if the debt ceiling is not raised. The US has always had periods of high debt, especially during wartime. This century started off promising then 9-11 came and ensuing wars we are paying for even today. Oh, in the middle of that was the housing meltdown and bank support all paid for through debt.
There is not a scenario where the debt is going to be paid off or even paid down. No politician wants to make the necessary cuts to get the country on better financial footing. They want the cuts to come in areas outside their districts. So, nothing gets done and the debt goes higher.
Interest rates have been at historic lows which have helped mask the magnitude of the debt. Nothing is for free. When interest rates go up, the debt payments go up which causes more borrowing. They borrow new money to help pay off old debts. This is a vicious cycle that only leads to real problems.
The percentage of debt to gross national product is raising. That means more money has to be spent to service the debt than can be used to pay for other services.
People under 40 have to be made aware of how this is going to impact their future. Taxes will have to go up to pay for debt interest. Services are going to be cut. You can’t print you way out of this with more money. That just increases inflation which leads to more debt.
We need leaders who are willing to make the tough decision to pay down debt. Everybody needs to pay and that means everybody. Some may not pay with direct taxes but through reduced services.
National debt is a big deal. It can’t be ignored. Get smart and demand action.
No comments:
Post a Comment