Wednesday, November 27, 2019

A Country in Debt

If you consider a simple economic construct, the country and many of its citizens are living on borrowed money and therefore borrowed time.

You can blame it on any number of things, but in many cases it simply comes down to wanting what we want now, and worry about tomorrow later.

This was part of the issue involved in the financial crisis of 2008-2009 where an assumption that home prices would only continue to go up led to loans on what is best described as a whisper and a prayer.

When they didn't go up and many of the mortgages couldn't be refinanced or paid, we had a collapse that almost drove us into a depression.

To solve that problem we inserted a great amount of money into the economy via stimulus to give us a jump start.

We are still living off a series of jump starts as we haven't reigned in spending and individual income growth has not kept up with debt increases.

We can't afford many of the things we want and the Government can't afford the programs it already has.

No one seems willing to do what needs to be done to address it so I guess eat, drink and be merry, until they take the T-Bird away.

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