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barking_iguanaSomeone at Facebook was talking about our debt being out of control, conceding in his next comment that it's only almost out of control, but still saying weshouldn't be borrowing despite the amazingly low rates the world offers us and despite the recession/'depression. I think my response is worth posting here.
It isn't even almost out of control. the debt problem right now is political much more than economic. If we had the will, we could reverse it with far less impact to our standard of living than we willingly endured wo tin WWII. That will be true for some time to come. But it's scary because not only the politicians, but our society as a whole seems unable to reconcile what we perceive as needs with what we're willing to attend to financially. That's unsustainable in the long run, so even though there is still considerable slack, we don't know that we'll turn it around in time.
But it's also true that balancing the books during an economic downturn is almost always a bad idea. If we want to make things right without truly drastic repercussions, we're gong to need growth. And as long as the world is offering us essentially free money, we need to be taking it and putting it purposes that will develop our physical and human capital, so that we can generate financial capital.
In short, we should be treating this country as an ongoing concern that must attain stability, not some company in irrevocable bankrupcty whose only purpose is to return as much as possible to the investors before closing its doors.
It isn't even almost out of control. the debt problem right now is political much more than economic. If we had the will, we could reverse it with far less impact to our standard of living than we willingly endured wo tin WWII. That will be true for some time to come. But it's scary because not only the politicians, but our society as a whole seems unable to reconcile what we perceive as needs with what we're willing to attend to financially. That's unsustainable in the long run, so even though there is still considerable slack, we don't know that we'll turn it around in time.
But it's also true that balancing the books during an economic downturn is almost always a bad idea. If we want to make things right without truly drastic repercussions, we're gong to need growth. And as long as the world is offering us essentially free money, we need to be taking it and putting it purposes that will develop our physical and human capital, so that we can generate financial capital.
In short, we should be treating this country as an ongoing concern that must attain stability, not some company in irrevocable bankrupcty whose only purpose is to return as much as possible to the investors before closing its doors.
