Debt - Our Leaders Putting Us in a Hole

Assume you are head of a household and you suddenly realize you are over your head in debt. If you want to get back on your feet, there are several things you need to do.

First, reduce your spending. Quit eating out. Cook your own meals. Get rid of your new car and buy a cheaper used car. There are hundreds of ways to reduce spending. They may not be fun, but they have to be done.

Second, cut up your credit cards and stop running up your debt. When you find yourself in a hole, stop digging.

Third, find ways to increase your productive output so you can earn more income and further reduce your debt. Get a second, or even a third job. Find a way to bring in more money to pay down the debt.

This process is not hard to understand. It may be hard to execute, but it will work. Living the same life style that got you in trouble in the first place will take things from bad to very bad.

The worst thing you can do is borrow more money, increase your spending, and lower your productivity. No sane person would recommend this plan. Yet that is exactly what our leaders are doing. It may make things seem better in the short term, but in the long run things will be much worse.

Today our economy is in a fiscal “crisis”. How do our leaders try to solve it? Do they reduce spending? No, they increase spending, and not just by a little bit. Do they cut up their credit cards and quit borrowing. No, they are increasing the National Debt by $Trillions. Do they increase productivity? No they are discouraging productivity, by levying high taxes on the businesses that are responsible for the productive output of this country, and rewarding those that don’t produce.

In every category, spending, borrowing, & productivity, they are doing the opposite of what is required to get us back on our feet. It is not hard to understand that the results of this behavior will be bad. How bad? I am afraid to guess. It’s frightening.

I have never heard a parent say that they want to run up a huge debt and pass it along to their children, but that is exactly what you and I are doing. It’s wrong. It’s immoral.