Wednesday, November 9, 2011

Debt and the Nation

I know, I know, you all want me to talk about the national debt, right?


I'm sure you are not that excited to hear what I have to say about it, so I will keep this as short as I can. I am a news junky, and I just read a very interesting article at The Economist website that talks about the actual equation that caluculates debt and projected debt. You can read the short article HERE. Using the equation and the current spending trend in the US, the article claims the following:

Using the average IMF forecasts for 2011-16, general government debt in America is expected to rise from 94% of GDP in 2010 to 129% in 2020. Assuming anaemic GDP growth of just 1.5% a year as opposed to 2.6%, and a nominal interest rate of 4% rather than 2.8%, US debt rises to 157% of GDP in 2020.

I have several family members who rely on government aid. My grandfather left my grandmother with 6 kids under the age of 8. She only made it up through the 8th grade in school (she left school to work during WWII) and therefore had no way of going into the workforce to support her children and pay for childcare. I understand there is a need for government aid for some, I truly do! However, if I have to live within my means, and make sacrifices to do so, shouldn't everyone?

Greeks are protesting at the austarity measures that will come about due to their inability to pay their government debts. Why are they protesting? You elected the government, the government spent to much, you need to pay for it. Life is tough like that. I'm not complaining because I can't go out to dinner every week. I cannot afford to go out to dinner because I got myself into student loan debt. In order to get out of student loan debt, I need to make some sacrifices.

So Greeks, maybe you can't retire at 60. Maybe you can't retire at all. Praise the Lord you are able to provide when you can, if you can, at whatever age you are.

So Americans, maybe we need to start caring for our aging parents ourselves. Maybe we need to start as Christians caring for those who need help rather than expecting the government to run its credit card to pay for it. Maybe we need to cut down the overseas military missions to save money.

A girl walking down the street may look sophisticated with expensive clothes and an Ivy league education, but if she obtained it all through debt, is she really sophisticated? Is she really smart? Is a country that buys its greatness through debt really great? Personally, I don't think so.

No comments:

Post a Comment

I love to fellowship with others and hear what they have to say. I would ask, however, that you be mindful of what you write and try to be uplifting and respectful. Thank you for sharing!