Many people are trying to attract the public's attention to the dangerous size of the National Debt. The trouble is, it doesn’t seem to be working. Congress has a big brouhaha every time it comes to raising the debt ceiling. It eventually gets raised and business and life go on as usual.
The real problem, is the disconnect between the average person and the national debt. The country has always functioned as expected and this debt has never interfered with day to day existence. If interest rates rise, the consumer knows they will pay more for borrowed money. If inflation increases, people are prepared to pay more for groceries. Big deal if Congress raises the debt limit, they’ve been doing it for decades. Many people in Congress have warned that the county could go bankrupt if steps aren’t taken to curb current spending and they have been feeding that “rant” to the public for years. None of the dire predictions has come true, so why even listen to these worry warts? You certainly won’t get elected to Congress promising your constituents a half a loaf of bread, when they expect a seven course meal.
The average person has no idea or can even envision the net effects of government insolvency nor do they even care. Their group solution would be; “Do what you did before to keep the government going, only do more of it.” Government Bankruptcy is so far from their real world of football, work and raising a family that it borders on absurdity. People look at government sequestration and the budget cuts, and are really surprised how much gets cut when you try to cut the budget by 80 billion dollars a year. Everyone get indignant when Congress shuts down the parks and monuments for lack of funds. And if lawmakers attempted to cut anyone’s benefits, God help whoever made the attempt.
The Tea Party Republicans are coming to the conclusion, they have nothing to lose by standing firm. If the Hoi Polloi can’t comprehend government Ponzi financing, then let’s take the government down the hard way and end the Mickey Mouse bookkeeping. It’s the Democrats that have the most to lose; the 17 trillion dollars of paper IOU’s (already spent money) could go poof because of a stalemated Congress. Wimpy ain’t going to bum another hamburger for payment later. As with any Ponzi scheme, there won’t be anything left for either party to give away.
A government collapse is similar to taking an airline flight. You wouldn’t get on a plane if you though there would be problems. Many years ago, my dad got caught on a flight that landed in Amsterdam. The airline had gone broke between stops. The pilot had to pass the hat for gas money among the passengers just to get to London. In this example the solution was simple, but it gets a tad more complex when the organization that supports and issues the currency, is insolvent.
The National Debt is like a giant candy store. The kid buying the candy has no concern over how the store owner runs the business. Therein, is where the problem lies.