Monday, December 1, 2014

Big Government and the 18 Trillion Dollar Debt

Would it be morally ethical for a parent to consciously build up a $56,000 dollar debt only to expect their child to pay it off when they themselves became an adult?

No! Of course not. They would be a horrible parent to do so. The primary role of parents is to get their children into adulthood adequately prepared to live independently and with as much success as possible. How are young adults supposed to survive those initial independent years already in a $56,000 dollar hole?

Our national debt just hit 18 Trillion Dollars. Spread that debt around and that is more than $56,000 per citizen and more than $153,000 per tax payer.

The problem is so large that we go into survival mode and simply tune it out.

Problem: Debt is growing at an uncontrollable pace
Solution: Methodically head back to the original intent of our Founding Mechanics

The Constitution lays out the intent of our national government in its Preamble: 

"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."

We all understand justice, domestic tranquility, and common defense. What is argued is the clause about "promoting the general welfare."

Before 1936, our government took a narrow / strict view on this clause, believing that "general welfare" referred only to Congress's enumerated powers described in Article 1, Section 8 and NOTHING else.

Since then, our government turned to a broad / loose view of this clause interpreting it giving Congress the power to expand as they see fit.

Thus, our debt as we know it was born.

Now our government has the power to promote some people's general welfare at the expense of others. As they promote more and more general welfare and make a lot of promises, though some benefit, the rest of the country will be crushed by it.

Chart Descriptions:

1: National Debt under Each Administration
2: Debt as a percentage of GDP and who was in power in Congress at the time
3: Rise of Entitlement spending and the shrinking of defense spending (opposite of our Founders' intent)
4: 2010 Expenditures in the Billions (none of those expenditures are Constitutional in a strict interpretation)