Have We All Gone Insane?
As I have watched the debate about the debt ceiling, I am wondering if nearly all of our politicians have gone insane. For that matter, I am starting to worry about the American people. Do we really not care that we are destroying our economy for our children?
If you were an investor, would you lend to the following individual?
He owns a company that nets $1.5 Million a year, but he has $1.4 Million in debt. The business currently nets $220,000, but his is spending $370,000 a year. He as agreed to cut his spending to $350,000 per year ($9,000 of the cut to be identified now and the other $11,000 some time in the next six months).
It does not sound like a great investment does it?
Oh, one other thing. He was also given $250,000 in money for a aging relatives. He agreed to hold the money and pay additional living expenses and medical care for his relatives. He had originally put it in a saving account, but he decided to lend all of the money to his company in exchange for IOUs.
That is pretty much what is happening with our Federal Government. Spending has been out of control for the past 10 years and there is no sign of it getting better. Even with the budget deal worked out in Congress, by 2021 the debt will be $21,000,000,000,000. That is nearly $70,000 for every man, woman and child in the United States. Who is going to pay it back? Not the people who are collecting social security. Not the 47% of Americans who pay no Federal income tax.
As de Tocqueville noted: "A democracy cannot exist as a permanent form of government. It can only exist until the voters discover they can vote themselves largess out of the public treasury."
If you were an investor, would you lend to the following individual?
He owns a company that nets $1.5 Million a year, but he has $1.4 Million in debt. The business currently nets $220,000, but his is spending $370,000 a year. He as agreed to cut his spending to $350,000 per year ($9,000 of the cut to be identified now and the other $11,000 some time in the next six months).
It does not sound like a great investment does it?
Oh, one other thing. He was also given $250,000 in money for a aging relatives. He agreed to hold the money and pay additional living expenses and medical care for his relatives. He had originally put it in a saving account, but he decided to lend all of the money to his company in exchange for IOUs.
That is pretty much what is happening with our Federal Government. Spending has been out of control for the past 10 years and there is no sign of it getting better. Even with the budget deal worked out in Congress, by 2021 the debt will be $21,000,000,000,000. That is nearly $70,000 for every man, woman and child in the United States. Who is going to pay it back? Not the people who are collecting social security. Not the 47% of Americans who pay no Federal income tax.
As de Tocqueville noted: "A democracy cannot exist as a permanent form of government. It can only exist until the voters discover they can vote themselves largess out of the public treasury."
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