First and foremost, my view of debt is very rudimentary. I am not aware of the reasons that are given to explain why we are in debt, or why we cannot get out of it. The only knowledge on debt that I possess is a very, very basic understanding.
From what I understood in my U.S. history class, the idea of national debt being a good thing started, at least in the U.S., with Alexander Hamilton. He believed that a running national debt would keep other countries more invested in our economy's survival. To me, the idea makes sense, if someone owes you money, you wouldn't want them to go broke, otherwise they couldn't pay you. This is just on a bigger scale, we owe other countries, they want our economy to do well so we can pay them back, so they trade with us. Yes, this makes sense, but, as to how much debt we should maintain, there is a line, and in current society, we have crossed that line.
Having a little debt can be healthy, having to much debt can be dangerous. Our country has to much debt. I don't know how we accumulated so much debt, probably something to do with the war, but I do not believe that that is the only cause. I'll look into that subject, and talk about it later. Right now, I'm going to offer my opinions on what the government should do, and again, these are very basic ideas. For one, I think the government is to big. It has grown into a monster that the U.S. can't get ride of. The founding fathers never planned for a big government, actually, they planned for the opposite. they desired a small government, one that barely intervened in the people's lives. Not only should we respect the ideals that our country was founded on, but a big government does not make sense. How can something that only generates income by taking other peoples money survive? In order to keep growing, is has to tax more and more. If it keeps growing, it will employ more people, that may sound like a good idea in our current situation, but it's not. The more people in the government, the less people that pay taxes, the more money the government has to generate, means more taxes. Now, in order to get out of this depression, we have to tax people, I agree, but not like this. We need to start creating more non-government jobs, jobs that actually generate money. The Great Depression's end was credited to Franklin D. Roosevelt. In an effort to try and raise the economy out of the dumps, he created numerous government agencies. The New Deal alphabet soup. Many people credit the end of the Great Depression to these government agencies. I think not, I think that these agencies might have mitigated the damage of the present, but in actuality, they probably prolonged the depression. What really saved our economy was World War Two. Now, we are in our own war right now, and thats one of our problems, so what's different? Well, frankly I have no clue.
From what I understood in my U.S. history class, the idea of national debt being a good thing started, at least in the U.S., with Alexander Hamilton. He believed that a running national debt would keep other countries more invested in our economy's survival. To me, the idea makes sense, if someone owes you money, you wouldn't want them to go broke, otherwise they couldn't pay you. This is just on a bigger scale, we owe other countries, they want our economy to do well so we can pay them back, so they trade with us. Yes, this makes sense, but, as to how much debt we should maintain, there is a line, and in current society, we have crossed that line.
Having a little debt can be healthy, having to much debt can be dangerous. Our country has to much debt. I don't know how we accumulated so much debt, probably something to do with the war, but I do not believe that that is the only cause. I'll look into that subject, and talk about it later. Right now, I'm going to offer my opinions on what the government should do, and again, these are very basic ideas. For one, I think the government is to big. It has grown into a monster that the U.S. can't get ride of. The founding fathers never planned for a big government, actually, they planned for the opposite. they desired a small government, one that barely intervened in the people's lives. Not only should we respect the ideals that our country was founded on, but a big government does not make sense. How can something that only generates income by taking other peoples money survive? In order to keep growing, is has to tax more and more. If it keeps growing, it will employ more people, that may sound like a good idea in our current situation, but it's not. The more people in the government, the less people that pay taxes, the more money the government has to generate, means more taxes. Now, in order to get out of this depression, we have to tax people, I agree, but not like this. We need to start creating more non-government jobs, jobs that actually generate money. The Great Depression's end was credited to Franklin D. Roosevelt. In an effort to try and raise the economy out of the dumps, he created numerous government agencies. The New Deal alphabet soup. Many people credit the end of the Great Depression to these government agencies. I think not, I think that these agencies might have mitigated the damage of the present, but in actuality, they probably prolonged the depression. What really saved our economy was World War Two. Now, we are in our own war right now, and thats one of our problems, so what's different? Well, frankly I have no clue.
I like what you had to say about the line between being in debt in order to get other countries we are trading with to want to trade with us, and being in so much debt that they realize if they invest in us then they wont get money back. I agree America has definitely crossed that line.
ReplyDeleteIf the government makes incomes by taking other people's money to survive then the government wont be able to survive without making tax's higher on people. I don't like the idea of increasing tax, but i understand how it is necessary and agree with you that we need to start making more non-goverment jobs. -- Marie
I agree that a small amount of debt is necessary in order to keep other countries from trying to sabotage our economy, but that we have extended that debt far too far. I feel that you are right, that government should promote private business, but that taxes are necessary to keep the government functioning. It is frustrating that the government only gets money through taxing, but it is necessary to maintain the government. If we allowed the government to make its own money through its own private businesses, government would be biased to itself, and gain monopolies over aspects of business. This would lead to the government controlling the economy, and eventually, Communism. Therefore, taxes without independent government income is a necessary evil.
ReplyDeleteWow, umm.. I kind of love this post. Not only was it concise, but it had lots of good opinions and ideas in it. I agree with basically everything you said. The thought of having a smaller government as a solution to debt is something I never even thought of! Good idea man. I think that taxing does indeed need to take place in order for the debt to be lessoned, because that just makes sense really. But taxing people without letting them have jobs that will actually get them money with which to pay taxes is truly uncool, right on? Good job, good job. Yes, very thought provoking stuff. Love your title by the way...I don't really know why, but it hooks me.
ReplyDeleteStephen, I'm not suggesting that the government should start private businesses to make money for itself. What I think is that the government is to large, and therefore requires more taxes, and that they should downsize it in order to cut taxes and spending. I agree that if the government started to make its own money it would gain to much control over the economy, but that was not what I was suggesting at all. Unfortunately, what I am suggesting is not as easy as it sounds, because either no one wants to downsize the government, or no one knows what to downsize in the government.
ReplyDeleteI agree that our current government is too big. I also agree that our government has way too much un-accounted for debt. I also believe that taxes will always be a necessary evil. However, I would like to remeid everyone that a major reason that our government has so muuch debt is due to the Bush tax cuts. In this sense, lowering taxes would most likely only deepen our debt. I am still unsure of how our government will be able to pay off a multi-trillion dollar debt, and how long other countries will continue to invest in us, especially with our governments current priority of putting money back into the pockets of its citizens.
ReplyDelete