Lee Wilkinson

This conversation is closed.

Pay off the National Debt.

If we all worked towards a single goal of paying off our National debt surely that would put countries like the USA and Great Britain (Technically Great Britain is not a country) in a more productive place to tackle the future.

  • Feb 22 2011: Governments borrow money as a way to avoid raising taxes. It's popular with politicians who can claim that they "haven't raised taxes," when in effect they're deferring it for future generations. When you factor in compound interest, they're causing enormous harm to our future economic well-being. Interest payments will cripple out economies. So long as we continue down this path, our nations will continue to decline relative to Asia. One of the main problems the US faces is that we are borrowing large sums of money from abroad, which tips the balance of trade against us, and when you factor in compound interest, we are bleeding like a sieve.

    I would like to see the US attain real GDP growth rates of 3-5% a year. The only way to do that is to pay down our national debt, gradually reduce public and private spending (we HAVE to get our Social Security/Medicare dragon under control), increase the savings/investment rate, and internally fund capital investment. We could add to GDP growth by becoming a net exporter of investment which would pad our balance of trade. The other budgetary dragon we need to get under control is military spending. High-tech=expensive.
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    Mar 3 2011: It's a bit like borrowing on the equity on your home thought isn't it? It's okay until you can't pay it back and the bank has a lien on the house, then you lose the house. If we borrow so much that we are indebted to another country what happens then? At what point do we have to say enough is enough?
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    Feb 22 2011: The national debt is a strange thing. Really debt is what makes the world go round. Everybody owes everyone something. What really matters is your GDP. If you're making more then you're actually paying every year, then you're basically in a golden age.
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      Mar 3 2011: too bad, you can't grow forever in a finite world, and thought we would never run out of gold, the golden age would be eventually long gone...
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    Feb 21 2011: Yes, it is very important ... It is very telling watching how people respond to this problem. In fact, the problem is we are finding ways to avoid it and or not taking it serious enough. Unfortunately, people tend not to deal with it until they have a gun to their head. By all signs, it appears that is the direction we are going.