Oct. 23, 1981, the national debt rose to $1 trillion.
After watching the video, does any of this make sense?
One of the key points John makes is that government debt is not the same thing as personal debt—that much of our federal debt is money we owe to ourselves. While he rightly argues that debt is therefore less of a problem than it might seem, it does have meaning. In particular, it means that we have turned over decision-making about a growing part of our finances to government decision-makers.
The other thing that debt allows government officials to do is to spend money today and make people in the future pay it back. When debt is used to fund entitlement programs, such as Social Security, Medicare or Obamacare, it also implies redistribution—officials are redirecting the income of future people to their preferred groups today. They are expecting that other groups not represented in the political process today (because they’re too young or not yet alive), will pick up the bill. Millennials and the generation behind them are particularly affected by this.
- Is turning over growing our finances to government decision makers a good thing?
- Do you think you would be better off if more of your financial decisions were being made by authorities in Washington?
- Do you think it’s fair that politicians are expecting you to pay their bills?
15, Oct. 2018, 1 Trillion US Dollar [Digital image]. Retrieved from <google.com>.