[Rhodes22-list] National Debt Correction

[Brad Haslett]

No! If it flies, floats, or f%#ks, lease it! It sure is fun though.


Brad

On 11/10/06, Philip <3drecon at comcast.net> wrote:
>
> What if you borrow money to buy a boat, is that prudent?
>
> Philip
>
> -----Original Message-----
> From:   rhodes22-list-bounces at rhodes22.org
> [mailto:rhodes22-list-bounces at rhodes22.org]  On Behalf Of Brad Haslett
> Sent:   Friday, November 10, 2006 3:13 PM
> To:     The Rhodes 22 mail list
> Subject:        [Rhodes22-list] National Debt Correction
>
> I made this same mistake the last time and Rik corrected me - I'll do it
> myself this time.  It is very easy to confuse terms when you discuss
> budget
> deficits and national debt.  This country was started on borrowed money,
> and
> has been in hock ever since.  As a percentage of GNP, we're 35th in the
> world. We briefly had a balanced budget under Clinton, which means we
> didn't
> ADD to the debt, but we never paid it off.  The debt is currently over 8
> trillion dollars, which is a big number but well below historical highs as
> a
> percentage of GNP.  If our GNP falls rapidly, we're in trouble.  Think of
> it
> like losing your job and not being able to pay your mortgage.  Borrowing
> money in our personal lives is common.  If you borrow to buy a house, go
> to
> college, or start a business, you are probably behaving prudently.  If you
> borrow for a vacation to Vegas, perhaps not.  Our long term growth in
> entitlement programs (read baby-boomers) is not sustainable - the public
> equivalent of a mass trip to Vegas.
>
> We could go into why paying off the debt too quickly is harmful to the
> economy but let's not.  There is a reason economics is referred to as the
> "dismal science".
>
> Brad
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