Debt destroys Individuals, Business and Countries
Last night I attended a function featuring a distinguished writer for the Wall Street Journal who spoke on the current state of the economy. Some of you may be thinking – that is exciting stuff – not! Well, maybe it is time to think of it as both exciting and serious stuff. Your future may depend upon what happens next.
Doom and glume is for the news media as is picking a political party to support. I want to go on record that neither party has done us any favors in the past decade. There is a problem and the problem needs to be addressed by responsible people who care about the overall good of the country rather than other things – specialty groups, power, ego and other things offsetting wisdom.
Here is the problem…
Too Much Debt is a very, very bad thing.
Over the past forty years of working in business and watching individuals, cities, countries, and businesses – there is one thing in common; if you spend more than you take in, you will go broke when the debt gets too big.
The bankruptcy courts are full of individuals and companies that have more debt to service than they have income to use for payments. This is a simple idea, yet, seems hard to do for many. And, countries are not sacred cows that can escape the crisis of debt – just ask the Greek government, too much debt to even service their payments or even interest.
We as a population need to educate each other about the downsize risks of big debt and begin to look for people to represent us – not based upon the political party they represent – we should be looking into their fiscal point of view. What do they believe in and what are their priorities – social, military, both, or sound financial standing?
The key to our future is growth. When business grows, opportunities grow, jobs grow, individual pay grows, and the economy grows. When the economy grows, we are capable of servicing our debt and still have something left over for additional debt reduction or discretionary spending.
Therefore, when you vote for people to represent you – vote for people who can balance a budget and believe in business growth and the things supporting this grow. We need people who can focus our country and companies on growth and abundance to make everything work.
If we do not take back this philosophy, then the Chinese are ready, willing and capable of taking our leadership role from us. They are focused and competitive – not perfect in all areas – yet, progressing at a 5 to 10% growth every year puts them in the drivers seat of controlling there own destiny.
These are just some thoughts to mull over during the holidays and the coming political elections. And, take these thoughts and apply them to your personal life or if you are a business leader to your organization. It is not too late yet, at the current pace of out of balance spending – we will be in a world of hurt within the next decade.