by Roger Mitchell, Stevensville
Today, the federal government debt is well over $36 trillion and will reach $37 trillion by the time Donald Trump takes office. It is on a trajectory of adding $1 trillion every three months, +/-, for as far as we can see, which, if extrapolated for the next four years through Trump’s term of office, means that by the time he exits the White House for the last time, the debt load will be an astounding $49 trillion.
This cannot be maintained indefinitely and will stop someday. The only question will be whether it is halted voluntarily by choice because we recognize it as best for us or involuntarily because we refuse to live within our means. Regardless, whichever way we go, it will be quite painful and many won’t be able to withstand it.
“Enter by the narrow gate; for wide is the gate and broad is the way that leads to destruction and there are many who go in by it. Because narrow is the gate and difficult is the way which leads to life, and there are few who find it.” – Matthew 7:13-14
This passage of Scripture, which many take to be relevant only to salvation or spiritual growth, can easily be connected to America’s financial situation today. While there are some (including myself) who would choose to go “cold turkey” on the debt load, most people will scream bloody murder if their pet project, program, pension, or payout is threatened in any way at all. Since politicians of all stripes are more concerned with re-election than with fiscal rectitude and self-control, they will do whatever the voters demand, and it is certain that the voters will demand that the gravy train continues, with ever more generous dollops of largesse scattered about, even if it means that the money thrown around becomes continuously less and less valuable.
“What? Me think about the future? Are you kidding? I know what I want and I want it now! Let my grandchildren worry about how to pay for it.”
This is the prevailing attitude of today, and as America sinks ever deeper into the pit of insolvency, it seems to grow stronger and more demanding. Eventually, it will end with one of the two scenarios described above. This is certain and those who are wise will take steps beforehand to extricate themselves from the coming catastrophe, as much as is possible.
Hard times coming, folks. Face it. Face it as reality and take action to minimize the danger to yourself. This is about the best we can do. Individually, we cannot change the Big Picture, but we certainly can affect things at our own level, within our own power.
There is no time like the present.
Gary says
There is a simple solution that Warren Buffet proposed years ago that would solve this problem. His solution targets the root of the problem. This also happens to be the root of so many of our problems in the U.S. government, and that is the lack of accountability. Many will argue that elections are what hold government officials accountable. I would argue that this is completely false, because if it were true then this debt problem would not exist, along with many other persistent issues. Anyway, here is what Buffett stated, “I could end the deficit in five minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP ALL sitting members of congress are ineligible for reelection.” The important part of this statement is that “ALL members of congress” not just one or two. This is the same principle used in a lot of military training, and it works because it forces the group to take accountability for each other’s actions not just their own. If one person fails, we all fail and that should be the mentality of all of our congressmen and women. But it is most certainly not. Until congress is actually held accountable it is highly unlikely that anything will change other than the rhetoric they use to manipulate their constituent’s.
Alan says
I literally cannot find a single point I disagree with you on Roger. The debt is the elephant in the room no doubt. The pilfering of a nation is typically done by its leaders prior to the collapse of that nation. The federal government needs to be seriously gutted, there is no other way. You cannot tax your way to prosperity, you cannot have a stock market that is 80% owned by the richest 10% (Wolff NYU) and be prosperous. You cannot have 99% of the real estate market unaffordable to an average wage earner, and be prosperous.(Brooks, MoneyWatch) You cannot eliminate fossil fuels and be prosperous. These are self evident truths, and just a fraction of the financial issues this country is facing. We either fix it or perish.