Posted on 07/06/2010 12:03:21 PM PDT by Mike Acker
The real consequence of debt is that in the future you will receive less than you earn
in 1950 anyone who would get up and go to work could make a descent wage. Get a job that same week. One income would pay for a home, a car, and send the kids to college
pile on debt
you are transferring future earnings into present consumption. where the government is involved the current consumption is re-distributed in the form of entitlements. some of this re-distribution is done by means of inflation -- increasing the debt by creating ever more and more money -- and the inflation steals from legitimate savings
today two ordinary incomes will scarcely exceed the poverty line.
if you let the people keep what they produce they will take care of themselves. those states with large entitlements are those which have the worst debt problems and these will be the first to fail.
It still can.
you are transferring future earnings into present consumption. where the government is involved the current consumption is re-distributed in the form of entitlements. some of this re-distribution is done by means of inflation -- increasing the debt by creating ever more and more money -- and the inflation steals from legitimate savings
But it is completely inaccurate to suggest that scenario was any sort of norm for America. It resulted from our victory in WWII and the ruin of the rest of the developed world's industry. Those times aren't coming back, except in the wake of another major war.
Union bosses make the same error, though for them it is a deliberate lie.
Homes were much smaller then, and didn’t have central air, and a host of other built in conveniences that we have come to expect in our housing.
hardly
the issue is what is the total value of goods produced domestically and of that how much is retained by the people rather than squandered by governments
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