Raising the Roof

By far the most consuming political issue right now is the debt ceiling suspension. In fact, I was watching the news Sunday morning with my mom, and that was the only thing they talked about (for the entire forty minutes that I was watching). I decided to look up a bit more about the issue online and found a great article on Forbes, the link for which is: http://www.forbes.com/sites/brianjacobsen/2013/10/17/debt-ceiling-deal/.

            The article’s main point was that the “deal sets the stage for future fights,” meaning that no final agreement long-term was really made and that the government is going to have to come back to this issue in a few months. Government officials have just pushed off their final decision and nothing was really accomplished with the shutdown besides a few minor negociations.

I know for sure that it is not just one party’s fault; both are to blame for this issue.  When George Bush was in office, Republicans spent a ton of money for the things they thought were important, and now that the Democrats are mostly in control, they are spending for what they think is most essential.  So the question really isn’t whether or not we are going to spend – spending is inevitable.  The question is what do we want to spend money on.

            I found this comic and thought it really illustrated the lack of ability to compromise that the two parties have.  If one party wants to cut back spending on something, the other one will refuse.  We cannot agree on what needs to be cut, and we are getting a taller and taller ceiling because we cannot compromise.

            This spending theme is not just in the government - it is a common trait of most Americans in general.  Many people, especially on the North Shore, buy nice cars and houses and don’t save much for the future. I am also guilty of spending more than I should; if I make $100 dollars mowing lawns, chances are that I am only going to save about 25% of it, at the very most. We only worry about the present, and don’t plan ahead for the future.  Sooner or later, all this spending is going to catch up with us and we are going to have a big inflation problem on our hands. Devaluing the dollar will be the only way to dig our way out of debt.

           

            Please respond with your thoughts on the suspension or any other ideas about inflation or spending. Thanks!