BY RUSSELL TURNER
SIN TAXES AND DEBT
It constantly amazes me how people in the government are ready to impose additional taxes upon things such as cigarettes or to ban the sizes of soft drinks that we are allowed to buy. They justify their actions because they think they know better than us mere mortals about what is good for us. While bureaucrats are ready for us to stop our sinful ways, they seem to ignore a much bigger sin of reckless spending and diminishing the quality of life of many Americans.
The way our national economy has been operated over the past several years is nothing short of a sin. The only problem is our government is the one exercising destructive practices and many of our retirees are the ones paying the penalty. Recently the Federal Reserve Chairman stated that interest rates would be kept low until 2014. Many retirees have worked hard and saved their money with the plan being to use some of the interest income to help augment their social security benefits for their later years. Because of the manipulation of the Federal Reserve, not only are our retirees not having a decent return in interest income, but in fact their principle is shrinking because the rate of inflation is greater than the interest income they are receiving.
Our government has developed an addiction to borrowed money at a low interest rate. Today our government pays roughly 230 billion dollars a year for interest on the debt. Here in 2012 the private part of the national debt has increased 300% over what it was in 2000, but because of the manipulation of the rate the payment on interest has remained roughly the same. If our government would pay the same rate as it did in 2000 our government would owe an additional 500 billion dollars each year.
Not only has our government been increasing the national debt for future generations, it has taken half a trillion dollars from the private sector that could have improved the financial conditions of countless retired citizens. Our government has become addicted to money with low interest rates, and the responsible citizens of this country who saved and planned for the future are the ones paying for that addiction. Eventually even the Federal Reserve Chairman will not be able to stop the rise in interest rates and, when it does happen, we Americans will be forced to get serious about disciplined spending. When our government has gotten addicted to spending a fifth of a billion dollars every hour that you don’t have, it is hard to break the addiction. Our system seems out of whack when the responsible people are paying for the sins of out-of-control government spending.
SIN TAXES AND DEBT
It constantly amazes me how people in the government are ready to impose additional taxes upon things such as cigarettes or to ban the sizes of soft drinks that we are allowed to buy. They justify their actions because they think they know better than us mere mortals about what is good for us. While bureaucrats are ready for us to stop our sinful ways, they seem to ignore a much bigger sin of reckless spending and diminishing the quality of life of many Americans.
The way our national economy has been operated over the past several years is nothing short of a sin. The only problem is our government is the one exercising destructive practices and many of our retirees are the ones paying the penalty. Recently the Federal Reserve Chairman stated that interest rates would be kept low until 2014. Many retirees have worked hard and saved their money with the plan being to use some of the interest income to help augment their social security benefits for their later years. Because of the manipulation of the Federal Reserve, not only are our retirees not having a decent return in interest income, but in fact their principle is shrinking because the rate of inflation is greater than the interest income they are receiving.
Our government has developed an addiction to borrowed money at a low interest rate. Today our government pays roughly 230 billion dollars a year for interest on the debt. Here in 2012 the private part of the national debt has increased 300% over what it was in 2000, but because of the manipulation of the rate the payment on interest has remained roughly the same. If our government would pay the same rate as it did in 2000 our government would owe an additional 500 billion dollars each year.
Not only has our government been increasing the national debt for future generations, it has taken half a trillion dollars from the private sector that could have improved the financial conditions of countless retired citizens. Our government has become addicted to money with low interest rates, and the responsible citizens of this country who saved and planned for the future are the ones paying for that addiction. Eventually even the Federal Reserve Chairman will not be able to stop the rise in interest rates and, when it does happen, we Americans will be forced to get serious about disciplined spending. When our government has gotten addicted to spending a fifth of a billion dollars every hour that you don’t have, it is hard to break the addiction. Our system seems out of whack when the responsible people are paying for the sins of out-of-control government spending.
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