These first to issues are forever linked to each other and the resolution of these issues is vital to the future of our country. We can not continue spending money we do not have and expecting that the consequences will not be dire. We already should realize those dire consequences. Our nation�s debt is primarily owned by foreign powers to which it leaves us somewhat beholden. As of September 2006, the total U.S. government debt was $8.5 trillion. And like many families that are buried in debt, all we manage is the payment of interest. And, since we can not seem to balance our budget, the debt continues to grow.
The federal budget deficit, which in essence creates the federal debt, is the primary problem as I see it. We, as a nation, can not continue to spend money we do not have. We need to determine how to be more efficient with the money we do have and possibly explore new options for generating money. This may mean difficult decisions come budget time. We may need to cut or streamline programs. But that is really the easy way out of the problem.
What we really need to do is determine new ways to accomplish our goals. We need to think outside the box. We need to scrap programs that eat up large sums of money and do not accomplish their goals. It seams like our general strategy is that if it does not work, throw more money at it. This boils down to throwing money away. We can not afford to throw money away! So we must change the way we do things.
As far as the debt is concerned, there are varying opinions about paying it down. The well respected Alan Greenspan actually advised caution in paying the debt down. He basically said that it is an easy way for foreign investors to invest in our country. My understanding of his point is that, were the debt paid down, foreign investors may invest their money elsewhere, which could weaken the US dollar. The other side argues that freeing up the money spent on the debt would only strengthen our economy.
I tend to agree with paying down the debt, which can only be done if we control our spending. If we pay down the debt, our budget will be that much easier to balance, because the interest payments will shrink as the debt shrinks. Besides, it truly scares me that the Chinese government owns more than 300 billion dollars of our debt and is buying it up at an alarming rate.
Solving the deficit and debt will not be easy. It will likely require sacrifices. And it will definitely require change. But I believe we can and should do it.
The Environment