Your Children Are In Danger – In 10 Years. Do Something Now Or Wait?
by Chuck Donovan
What do you think of this headline?:
“U.S. Debt Woes Are Not So Dire, Experts Say” L.A. Times (1.)
It didn’t sound right to me, so I read the article. Here is a quote:
“…economists worry that such large public debts are corrosive to growth and give the economy little cushion should another recession strike or interest rates surge.” (1.)
Our economy is limping along. The government continuously worries about growth, but the L.A. Times doesn’t think it is “dire” that more debt will be “corrosive to growth”. The prudent statement would not be “should”, but rather “when another recession strikes and when interest rates surge.”
Further reading reveals the headline as the fraud it is:
“The evidence shows that the country is on a course of spending and debt accumulation that could lead to serious trouble not today or tomorrow but probably 10 to 20 years down the road.” (1.)
Understand the authors are saying we will have “serious trouble” in 10 to 20 years. What that means is your children will face this “trouble” head on. Your school children today will face “serious trouble” when they graduate from college. Is that good enough for you? Why is the L.A. Times so blythe about a “serious” economic event in 10 years, but maintains a crisis mode when they talk about a possible climate event in 50 years or longer?
That’s not good enough for me.
Government debt is a burden, no matter how it is financed. Americans are shouldering that burden in the form of lost jobs, and lost purchasing power. Waiting and hoping for another 10 years is not plan for prosperity, it is a plan for death.
The L.A. Times might want to make believe there isn’t a debt problem and that fiscal hawks are more like Chicken Little, but when Americans turn to their senses instead of the mainstream media, they understand the reality of this crisis.
“Much to the chagrin of the so-called experts, a sizable portion of the American public can smell a rat: they know that raising the debt ceiling is not needed to avoid calamity, and they know it would just let the politicians continue to waste our money.” (2.)
That is how the Libertarians and the Austrian Economists I admire have been talking about the national debt since the formation of our Party in 1971.
New headlines don’t change reality or economic law. Debts large and small all must be paid. Henry Hazlitt pointed out in his book Economics in One Lesson, that good economic analysis requires people to look past the short-term effects on some people and to focus on the long-term effects to all people. The long-term effect of our national debt is economic destruction. Economic reality will strike us no matter how much hope we have or how we twist our headlines.
The only answer is fiscal sanity now, not in 10 years.
Don’t be afraid of letting freedom win.
AUDIO TO LISTEN TO
“Entrepeneurs and Conscious Capitalism“, from the Cato Institute
Whole Foods CEO John Mackey points out that our bodies must produce red blood cells for us to live, but the purpose of our lives is not to produce red blood cells. Similarly, businesses must produce profits to stay alive, but their purpose is not just to produce profits.
(1.) “U.S. Debt Woes Are Not So Dire, Experts Say”, by Don Lee and Jim Puzzanghera, Los Angeles Times, Jan 31, 2013, http://articles.latimes.com/2013/jan/31/business/la-fi-debt-economy-20130201
(2.) “The Case Against Raising The Debt Ceiling”, by Robert P. Murphy, Mises Daily, June 9, 2011, https://mises.org/daily/5362/The-Case-against-Raising-the-Debt-Ceiling