What can we do about national debt?

My answer to the question  : It is hard to cut taxes with high National debt. Monetary policy can only go so far in helping economic growth. In order to keep the interest cost of carry the National Debt, bond yields are too low so retired people don’t have enough income to pay their bills, investment returns for retirement savings plan will be lower and workers will have to either save more or work longer. ricodilello commented on The Multiplier, a theoretical concept invented by John Maynard Keynes in the 1930s

In another blog ricodilello refers to student loans and how they affect families and delay young people from buying a home, which in turn, cripples the economy.

So, you plan to spend (say) fifty thousand after-tax dollars to send each child to college.  This is a bad idea.  You don’t get what you pay for. You pay for what you get. What, exactly, does your child get for your money?  The first two years are wasted. Maybe more.

The average book assigned to college freshmen is at a 7th-grade level.   There are parents who pay for this. You should not be one of them. The RPC (Ron Paul Curriculum) suggests that a high school student should quiz out of the first two years of college. The exams cost about $2,000, total. A student can pay for this, and should.

RPC trains high schoolers to do this.    http://www.ronpaulcurriculum.com/public/department135.cfm

There are smart ways to earn an accredited college degree. Physically attending the first two years of college away from home is not one of them.

The above paragraphs are from the Ron Paul Curriculum website. My point is that students and families of students can save a lot of money for college to reduce their debt. That is where debt reduction must start. Ron Paul’s suggestion requires more initiative of the student and the support of the family to get him / her there. Do you set the example as a father? as a mother? as a family? Do you teach your children about debt? Do you pay off your credit card automatically every month? National debt does not come out of the blue. Our Senators and Congressmen willingly oblige to the public requests of more programs and more conveniences to get our votes. They conveniently forget having to scale back when the economy is down!

I am re-reading The 7 Habits of Highly Effective People by Stphen Covey. Habit 1 is to be pro-active instead of re-active. In the stimulus of going to college a pro-active response requires self awareness, imagination, and an independent will, by the student. He / she has the freedom to choose and their language should be: I can, I prefer, I will, instead of: I can’t, I must, if only. “If only my parents had enough money to send me to college.” They might, if the student would do the work and do the exams recommended by Ron Paul, thus saving two years of tuition plus room and board!

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