National Debt

If there is one thing all Americans should worry about, it is debt (both public and private). As of June 24, 2008, the national debt is just under $9.4 trillion dollars. By comparison, the national debt in 1981 was at a mere $800 billion. How we got here (or who got us here) should not be the issue. The issue should be the threat debt poses on the future of America if something is not done soon.

Every single day the United States borrows close to $3 billion a day. Last year, the United States paid $227 billion in interest alone on the “national credit card.” This means that we pay our current debts by borrowing money from other countries (50% of public debt is owned by foreigners). Therefore, if and when we start to pay our debt, we will be poorer than before as a result of all of the built up interest. What does all of this mean for society?

Unless WE do something as Americans now, the issues with the debt will continue to get worse. The debt will not just affect our children, but our grandchildren and us as well. National security is at risk and our future standard of living. How does the U.S. government expect to finance a military when all of the money to fund the military comes from foreign countries? As soon as those countries stop lending us money, is when the real problems start. Anytime you loan someone money, you (the loaner) have more control/power over the “loanee.” The United States is a “loanee.” Finally, if we fail to start conserving now, the entire weight of the United States will be in the hands of future Americans. Economist Laurence Kotlikoff calculates that future workers would have to pay tax rates from 55% to 80% over their lifetimes to pay off the debt. If these futures workers do not fulfill these standards, America will be faced with one other option, the complete collapse of American society. If we do not act now, with the issues surrounding the national debt, the future of America will mean no America at all.