Thursday, January 3, 2013
Thoughts on reducing debt in the USA
With the New Year comes many a resolution to lose weight. However it is all to common that we would do ANYTHING to lose weight except to eat less and exercise more. Is it any wonder that we have such an obesity epidemic in the USA?
It seems the United States law makers continue to treat our debt is very much the same fashion. They would do ANYTHING to reduce our debt except to raise taxes and cut spending. Even though we have a debt problem we've been told for many years now by political leaders our role is to spend more and be better consumers, which is a bit like encouraging an alcoholic to take another drink. How will that help us to reduce our debt of $16,442,558,207,926, which averages over $52,000 per US citizen?
Consider how in previous generations all the nation's citizens were required to sacrifice and ration for the additional costs required of a war. During 1944 and 1945 the top tax rate for individuals with incomes above $200,000 was raised to 94%. The current rate increase to less than 40% on the highest tax bracket is relatively small potatoes, and hardly constitutes "class warfare". With the USA's most recent wars in Afghanistan and Iraq the country went to war AND lowered the tax rate. It doesn't take a mathematician to figure out that combination will create a major deficit.
The citizen/consumer mantra in this nation has become "quick, easy and cheap". To lower our nation's debt will require time, it will be difficult and will necessitate sacrifice by all. Are you ready? A new year has dawned, and it is time we eat less, exercise more and start the hard work of reducing our personal and national debt.