I just read an article titled “Debt tantrum on a sinking ship by Richard Heinberg” that I want to share a few quotes from regarding our current national debt:
Republicans say that more government debt is unsustainable. If we keep piling it on, we’ll eventually get to a point where all government revenues are eaten up by interest payments. We have to get off the deficit treadmill now; if we do—if we downsize government by shrinking the federal budget—we can free private enterprise to create jobs and grow the economy.
Democrats agree that spending needs to be controlled, but argue that overly ambitious spending cuts will undermine the recovery. Government has a necessary role in priming the nation’s economic pump during a recession. At the same time, the super-rich—who benefitted so much from Bush-era tax cuts and are sitting on enormous piles of cash—should be helping the nation make ends meet.
These two perspectives are irreconcilable. Ironically, though, they’re both right. Debt will overwhelm us. Reducing government spending will cause the economy to relapse. But they’re also both wrong. Reining in government won’t automatically cause the growth of private enterprise. Yet neither will more stimulus spending.
All most of us have known is a growth economy based on debt. It is unsustainable… especially when you realize the growth is dependent on cheap energy, which is based on natural resources being used up much faster than they are being replenished. What do you think is going to happen when the forces driving the unsustainable practices finally stop?
