Saturday, May 1, 2010

The problem of debt

Early in our marriage Christy and I racked up a lot of debt.  We had a rough patch where our credit cards were maxed out and charging us 18% interest.  We had to live with Troy and Christy (thanks again, Bollingers!) for 10 months because we couldn't afford to pay rent and our credit cards at the same time.  It was a humbling and difficult experience.

Greece is going through that right now.  The Greek debt is threatening to break up the European Union.

America's debt is about to do the same thing.  We are about to have to cut deeply on public spending and divert a tremendous amount of our tax dollars to paying off our debt.  This will be virtually impossible to accomplish through the normal political process--no congress-person will want to take the blame for cutting some constituent's programs.

Employment will dominate the 2012 election cycle.  Debt and spending cuts will dominate the 2016 and 2020 elections.

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