So far I have established that debt of itself is not bad. Without it very few people can afford to purchase a home. For that people get a mortgage. I have also determined that individuals, companies, and state governments have to have a way to pay off their debt or they will go bankrupt. In California we have heard of cities like Stockton almost going bankrupt.
What about the national government? How do they pay off debts? What happens if they don’t? We can read articles about what happens if the national government goes “broke”. Somehow that does not seem to happen. In the graph below you can see the trend of the US national debt, and that it increases in the trillions! A year ago or so, the Republicans faulted Obama for having doubled the national debt during his presidency. The graph below shows that the national debt doubles about every 7-8 years regardless of whether there is a Democrat or a Republican in office. The same goes for congress. It does not appear to make any difference.
Of course there are consequences, like the value of the $ going down, the amount of interest on the debt becoming increasingly larger by each year’s budget, and many more. That is what this blog will be used for to develop further. Ultimately I want to see why no one in government seems to be concerned about the country going broke, and what it will take to get to that point.