The mountain of debt that has accumulated within government seems impossibly steep. The national debt load is somewhere around $11.5 trillion, and being added to by new spending efforts by the Obama administration. Meanwhile, the state is borrowing some $700 million to pays its bills because of shortfalls, and it is likely the next fiscal year will see more funding crunches.
Who can blame citizens, then, if they too have fallen into the debt trap? It seems our nation was founded on debt (our first loan was to pay for the Revolutionary War). Shifting that financial philosophy ingrained in our society will not come easily, and possibly will not come at all.
But with that will come consequences. Eventually, the government - and most Americans, too - will have to cut back. Economists predict that if we do not work to decrease our national debt, it may be our next full-blown economic crisis.
That could result in higher taxes or fewer benefits and services - or all of the above. Living within your means, whether on an individual basis or a governmental one, requires sacrifice, and that sacrifice is generally unpleasant.
As the U.S. spends trillions in an effort to stabilize our economy, thus pushing down the value of the dollar, the treasury securities investors buy - which largely finance our debt - become less attractive. If major holders of our debt were to flee, economists say it could shake the global economy and force up U.S. interest rates.
The longer we avoid steps to make a dent in our debt, the more painful it is likely to be when it comes crashing down on our heads. It's not a problem easily solved, but it is a problem that should be recognized and addressed, and the sooner the better.