January - March 2012



Too Much Debt ?



It is hard to imagine a billion -- ten times more than 100 million. How do we grasp 15 trillion -- the recent amount of our National Debt?

Most of us have both income and bills to pay, happy about one, sometimes putting off the other. Some of us borrow by using credit cards to pay bills or to buy goods and services. If we fail to pay in full for what we charge each month, we establish or increase our debt and must pay interest to the bank until our balances are paid off.

As a country we have increased our debt enormously. So do we have too much debt?

Can we pay it off in one generation? In two generations? In three? The working life of most individuals is between forty and fifty years. If we set the goal of paying off our current National Debt in 100 years, then each year would cost us 150 Billion on our debt plus interest. At a 6% interest rate and with a work force of 130 million, the cost would be $1,535 per worker per year, or about $30 per worker per week.

So are we unable to pay? The answer is: No. We can pay.

Later it will be harder if we fail now to start paying what we owe. Why wait? Is this not the time to begin?