For all you who have followed me in any way, you may
remember my article on the "Horror of our debt", which Brad was kind
enough to place on the main page. In that, I reported that I thought that it
would be best if the federal debt was removed in its entirety, to be replaced by
a 1 trillion dollar surplus to be used during times of war. After having spent
some considerable time researching the history of our federal debt, I realized
that Alexander Hamilton saw the public debt as a good thing, and even though he
worked to reduce it, he insisted upon the need of a small public debt. His
reasoning was that if the public had a financial stake in the government, they
were more likely to make sure that it succeeded. While that no longer has
implications today, I realized that the biggest problem with the debt after the
revolution was NOT simply that there was a debt, but rather that the debt of the
United States Government exceeded the assets of the federal government. That
leads me to my next point- we should reduce our debt, but the step that needs to
be taken first is the government needs to do a comprehensive audit of itself,
using an outside agency or panel or firm, to determine the value of the entire
assets of the Federal government. They should also determine the re-sale value
of the assets (meaning only things that could be sold, for example nuclear
secrets could not be safely sold, though they may have theoretical financial
value because they could be sold to terrorists). After this is done, the
government should try to keep as low a debt as possible, and of course if
possible, pay back the entire debt, though with no extreme urgency.
The difference I am trying to make from my original
position is this:
Before I thought that the debt was crippling to the economy
and the "standing" of the dollar. While it may hurt the dollar, it is
not crippling, because the value of the assets of the federal government exceed
the debt. When the capital holdings of the US are not worth more than the debt,
this will ruin the economy.
I still believe we should reduce our debt however,
because it cost's taxpayers 300 billion dollars a year. I just take back some of
the other measures I proposed, such as implementing a large sales tax. Perhaps a
small one would still work, but who knows. I still believe we should reduce our debt however,
because it cost's taxpayers 300 billion dollars a year. I just take back some of
the other measures I proposed, such as implementing a large sales tax. Perhaps a
small one would still work, but who knows.
I still believe we should reduce our debt however,
because it cost's taxpayers 300 billion dollars a year. I just take back some of
the other measures I proposed, such as implementing a large sales tax. Perhaps a
small one would still work, but who knows.
