Debt…

Now there’s a dirty word, true?  Lots of consternation these days about debt of various kinds; credit card debt; student loan debt; our country’s national debt.  Why is it debt is so easy to get into and so hard to get out of?

I read recently that the younger generation is saving in their 401k accounts at record levels.  Pessimism over social security perhaps?  Pessimism, criticism, blaming the federal government for over-spending.  That’s nothing new.  Senator Everett Dirkson from my home state of Illinois and Minority Leader of the United States Senate from 1959–1969, famously said: 

A billion here, a billion there, pretty soon it adds up to real money. 

There’s always lots of rhetoric when it comes to spending, taxes, and the economy, yes?  Today’s headlines are nothing new.  Nor is it limited to the United States’ government.  It was once reported of Winston Churchill, UK Prime Minister: 

The opponents had asked for six ships.  The 'economists' tried to hold out for four.  And the result on the 'compromise' was eight. 

Roy Jenkins 

OK, we all know it’s hard to balance the budget.  Lord knows our federal government has been fighting, and losing, that battle since the George Bush, Bill Clinton era.  Even then the explanation and credit assigned to the appropriate person(s) was vigorously debated. 

As I understand it, the current Administration’s thinking is to cut taxes, increase defense spending, and rely on tariffs to make up the difference.  It reminds me of the 1980s and Ronald Reagan’s administration.  Reagan was counting on “trickle down economics” vs. tariffs to balance the budget.  The “trickle down” phrase is nothing new either.  It is credited to Will Rogers during the 1930’s Great Depression.  Reagan thought that was a good idea fifty years later? 

Every time history repeats itself the price goes up. 

Joseph A. Tainter 

Well, here we are again repeating history and dealing with debt.  Sadly, the price increase of history is not tax deductible. 

GAP 

When life gets tough we could get a helmet… or… we could leverage the peace and share the power of a positive perspective.