McCain, Obama, Bush and other leading lawmakers are talking about a bailout of our credit markets – and with some exception all seem to feel that it is needed. Perhaps! But does it make sense to increase out debt ceiling in order to fund non-government bad debt?
According to CNN – “Rep. Barney Frank, a high-ranking Democrat, said he is convinced that by Sunday, lawmakers will reach a deal on the proposed $700 billion bailout of the nation’s financial system.”
The source said that when a plan is reached, Congress will not authorize a full $700 billion expenditure at once. Instead, it will be broken into a series of smaller transactions. The amount of the initial allotment continues to change, the source said.
The talks had stalled after House Republicans said they couldn’t go along with plans devised by the White House. Later, congressional leaders on both sides said they would send representatives to take part in negotiations.
Regardless of comments from private citizens, it appears that we, as a country, are hooked on debt and this bailout will happen. The concept of paying for what you consume is dead. The increase in the debt ceiling would make it such that (if it had to be paid back) each American would shoulder some $38,000 each to pay the debt. Nothing is free and make no mistake that a bail out is nothing more than the Government propping up failed private business failures. The whole process is much like maxing out your credit cards – having collection agents call – and solving the problem by getting a new card with a higher limit. The problem isn’t solved…it’s only an illusion.
It’s not a Republican problem or a Democrat problem – the problem is we don’t have, as a nation, the will to be fiscally responsible and until we do so – we will continue to burden ourselves and our children with debt.
As a business ethics speaker I often say: Every choice has a consequence. That is true for individuals, company’s and governments. Debt must someday be paid or we will be owned by the lender. Maybe someday our politicians will have the ethics to stop our policies that continue to increase our debt and begin to operate in a manner that respects those who are governed.
Your comments are welcome!