Green Room

Debt is slavery

posted at 5:56 pm on June 2, 2009 by

According to the CBO, at our current rate of borrowing and spending, by 2019 the U.S. debt will be 82% of the overall economy. And this is without adding any more disasters, wars, or new spending programs such as Nationalized Health Care. Think about that for a moment. That’s three quarters, a nickel, and two pennies out of every dollar just to pay for our debt.

If you get paid $1,000 per week, you will actually only have $180 left over of real money. If you sell an item for $200, you’d get to keep only $36 to feed yourself, your family, and your employees. The debt can be stretched out, but the interest is what is killing us, that and too many promises we cannot keep.

Scripture takes a dim view of debt. It was to be avoided at all costs. Passage after passage warns against taking on debt, both personally, and as a nation. It is so bad a situation, that Deuteronomy mentions debt one of the curses of disobedience.

If you diligently obey the Lord your God, being careful to do all His commandments which I command you today, the Lord your God will set you high above all the nations of the earth. All these blessings will come upon you…You shall lend to many nations, but you shall not borrow.
Deuteronomy 28:1,2,12

Debt is not just a curse, it is a form of slavery. The indebted has no freedom to work his own will. He is constantly at the mercy of the lender.

Just as the rich rule the poor, so the borrower is servant to the lender
Proverbs 22:7

Our nation’s debt does many things. It increases our stress level as we – the people – fret over our future, and that of our children and grandchildren. It encourages laziness as those who take no ownership of the debt (ie – those who do not pay into the system) feel no obligation towards it. It denies our country the ability to loan to other nations, and therefore collect interest ourselves – which just compounds the money that is lost in this trap. And it denies our nation the ability to give freely to nations which may need our help.

For example, a recently released U.N. report states that hunger in South Asia is at a 40 year high. 100 million more people are going hungry compared to just two years ago. 100 million is just under a third of our population. 1.2 Billion people live on just $2 per day or less. For $3.6 billion dollars, we could quadruple their income. Just not being hungry would have a dramatic effect on the population, increasing their productivity and allowing them to work their way out of poverty.

But the U.S. is actually out of money. It’s gone. Even Obama has admitted it. We are unable to help anyone else because we are in a serious hole with no possible way to dig ourselves out. What is our government doing about this debt? Spending more money, and planning to spend yet more money. We cannot stay on this path. We are spending so much money that people have actually become numb to the word ‘trillion’. It doesn’t mean anything to the average person on the street. We just cannot fathom that much money. So let me try to put it into perspective. In less than 10 years, a 99 cent cheeseburger will cost at least $5.50 – and that is without adjusting for normal inflation. Taco bell is going to have a hard time selling $10 burritos.

I can’t imagine what going to the movies is going to cost.

Red Dot in a Red State

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For example, a recently released U.N. report states that hunger in South Asia is at a 40 year high. 100 million more people are going hungry compared to just two years ago. 100 million is just under a third of our population. 1.2 Billion people live on just $2 per day or less. For $3.6 billion dollars, we could quadruple their income. Just not being hungry would have a dramatic effect on the population, increasing their productivity and allowing them to work their way out of poverty.

Ridiculous. Sorry, but that sort of thing has been tried. It doesn’t work. Ever.

TheUnrepentantGeek on June 2, 2009 at 6:28 PM

The example given doesn’t work.

That’s three quarters, a nickel, and two pennies out of every dollar just to pay for our debt.

The debt is a single number — pay it off and it’s gone; the overall economy (GNP or GDP) is activity over a period — there’s the periods before and the periods after, as well.

The problem is that the periods before have been borrowing and borrowing, and if the periods after don’t start repaying and repaying there will be no limit to the size of the hole that can be dug.

To evaluate debt load, one has to look at the size of the debt service obligation against the overall economy.

cthulhu on June 2, 2009 at 7:17 PM

The first half of this is excellent. The second part is making me think a lot. Thanks for writing it up!

spkthed on June 2, 2009 at 7:47 PM

Reagan sounded the warning in 1964.

The question then was the same as it is now.

….What do we do about it?

Hawkins1701 on June 3, 2009 at 12:26 AM

President Obama, the Democrat Party as well as the absolutely spinless Republican Party are enslaving our children with their irresponsible spending.

MsDollie on June 4, 2009 at 8:11 PM