Tuesday, December 13, 2022

Spending/Debt, Me and the USA

 One of a kind:

 The Doughnut truck by Tim Horton!

 For today:

The generation of working people before me, knew you could not spend more than you earned. The Great Depression came about because someone above the working class, did not know how to manage money.

My LADY and I were taught that, by example as we grew up.

Over the past 70 years people began to WANT things NOW, so they borrowed to get them.  At first it was what they considered essential. It has climbed now to a point Big girl and boy toys up to $50,000 are bought on the credit. After buying our first big RV, the salesman said, “You are in the top 2% of folks that drive these RVs. 98% never own them.

We know a couple who for the past 20 years have ran up debt so high, they declared Bankruptcy. They learned after the first time, they could do that about every 7 years, so they have did that. (Bankruptcy hurts those you owe! Some bankruptcies may be necessary, but PLANNED ones are the same as robbery!)

Now look around you and think. All USA Administrations over the past 60 years have NOT stopped spending more than they could pay.

The Clinton administration worked together with congress and was the LAST to have a balanced budget. Since then EVERY Administration, Democrat and Republican have continued to come up with ‘GOOD programs’’ but could not pay for them, so they borrowed.

A balanced budget is very good, but remember, under today’s terms that means you’re paying the interest on our National debt, not paying it off.


“If you really want to do something, you will find a way. If you don’t, you’ll find an excuse.” – Jim Rohn

NOTE: I do not expect a default for many years yet, but if something isn’t done, it will happen, eventually.

Lines or food....

(The above are from USA depression era, they are not actors but real people, just like us!)

What happens if the Gov’t defaults? My guess... It will take a couple years DEPRESSION to get back on track. What happens in that period? SS, Medicare, Medicaid, Govt Salaries, Police, FBI etc would either STOP or be cut in half.  EXISTING GANGS would become brazen and try to control cities and towns for food and money, etc.

I cannot find the information as to what processes would be required. Or how it would be handled. I remember daddy saying a friend who lived in Germany (1940s) said it got so bad that it would take a wheelbarrow full of money to buy your groceries, the money became worth-less.


PS:  I think wheelbarrow was used to mean ridiculous amounts.



Victor S E Moubarak said...

Many these days do not know the value of money.

Praying you and your family are well, Jack. God bless you all always.

I'm mostly known as 'MA' said...

Like you I grew up with parents who grew up during the depression and I learned to only spend what I had. There was a short time I had to use credit, but when I could I paid those bills and since have not charged anything. If I don't have the cash for something, then I don't need it. It can be tempting to do otherwise, but it is not worth it. With interest rates going up, I don't know if people will ever get out of debt.

Mevely317 said...

How I wish someone had sat me down at age 19 and imparted this sort of 'tough love.' Then again, would I have listened? Probably not.
Bankruptcy was never a consideration -- and I've some pretty strong feelings about that but won't go there.

I've not sufficient education to render an opinion about our government, but the picture you paint makes me shudder. What a world we're leaving our children and theirs!

Chatty Crone said...

I have seen those photos before and they are so incredibly sad. Our generation learned from it - not sure about other generations.