National Debt Reflects a Nation That Has Lost Its Way!
As tensions about raising the nation's $31.4 trillion debt ceiling build, the headline that should be flashing in front of every American is that our country is not working.
Nothing is going to get fixed -- really fixed -- until we come clean about this basic, sad and distressing fact.
How can it be that we have national debt equal to size of our entire $32 trillion economy? And where were we all when this happened? As recently as 2008, debt was 39.2%, rather than 100%, of our GDP.
One of the outcries that fueled the American revolution was taxation without representation. But this is exactly what is going on today. Who is on the line for this $32 trillion debt? You and me.
There are two ways that federal spending can be financed. Taxes or debt. Politicians don't like taxation because they have to be honest with citizens that they are taking their money. Borrowing achieves the same end without asking.
The last thing Congress did before shutting down in the last session was pass another $1.7 trillion in spending. There were no taxes to pay for this. It gets layered onto the huge debt, which is on you and on me.
As economist Milton Friedman once said, "There is no such thing as a free lunch." We pay for everything.
Instead of paying our bills honestly through taxes, we bear the burden of debt through inflation and slow growth.
We must appreciate that the discussion about debt and spending is not about accounting. It is about principles.
Our national crisis stems from straying from the basic principles upon which a free nation under God was founded.