Monday, November 29, 2010
Debt
What do the the economies prior to the Great Depression, our current recession, and our government have in common? All three of these were run by debt. Right before the Great Depression credit was becoming popular, and families were buying everything on credit, even stocks. Just like in the current recession once the stock market crashed and people lost jobs, it spread because people had so much debt. In the current recession many people try to blame the banks for faulty loans, but the bottom line is when you sign you name, you better know what you are getting yourself into, if you even bothered to read the contract. Now our country has a national debt of over $14 trillion. We need to make sure we hold our leaders to being fiscally responsible. Most politicians do not care about the debt because if they try to cut programs, it will become hard to be reelected. The politicians that do not care about reelection are the ones we should rally around, because they are the ones who are going to try to help our country, not the others who do not care about this country's future.
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I agree it is not right that we have let our debt get out of control. It started in 1791 well they have records to track for that year as the earliest. So it is I guess plausible to say that some debt during tough times is useful. But when were up so high i think it is time to change. I mean the treasury buys treasury bonds so it owes itself money. Deficit spending is useful in stimulating demand. But clearly just like California can not afford all of what it has been paying for the national government cant.
ReplyDeleteyeah that is the problem with past balanced budget amendments proposed because they would not allow deficit spending. Deficit spending can be good as long as we pay it back and not let it accumulate.
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