Dad's Money

Dad’s Money (2/23/2011)

Nightly we are bombarded by incomprehensible numbers regarding Federal government spending: $14 trillion debt, $4 trillion budget, $1.5 trillion deficit and $180 billion interest payments. There are too many zeros on each number to print in this column, twelve each for the debt and deficit. Sadly, like gamblers in Las Vegas using colored poker chips we have lost sight of reality because no one touches the monies. As taxpayers our view of the government has become like a child’s view of Dad’s spending. A five-year-old watching his father has no idea where he gets money, but feels there is an endless supply. Sometimes Dad reaches in his pocket and uses green currency or coins like nickels and pennies. Other times Dad uses colorful plastic cards and swipes them in machines, and Dad has a book with checks where he illegibly scribbles names and amounts and declares the bills are paid. Of course, he also logs on his computer and banks via the web. Similarly, the government engages in a playful deception of payments, using computers, checks, and cash cards to move monies around.

Dad always seems to have money and as five-year olds we know he leaves each day and goes to work to make more. A connection between work and money seems obvious because doing chores sometimes brings allowance to children. As young children we always seem to have food, clothes, and toys. We don't know how the lights operate or anything about mortgages and rent, insurance, gasoline, or car payments. However, we know dad takes care of us and most citizens view the government the same way with no understanding of tax income or expenditures

Right now we are enjoying historically low interest rates, easing interest payments on our $14 trillion debt. If interest rates return to historic norms of 6% the payments will increase to approximately $840 billion, nearly 23% of our current budget. Like a five -year-old trusting Dad to make money and spend money to care for the family we believe our elected trustees will do the same. However, re-election drives decision making, not the tough longevity of parenting and sadly our federal government is recklessly spending money. Congress must be held accountable for the deficit spending because they are bankrupting our country. Every parent and grandparent should know what is happening and encourage Congress to stop today’s fiscal negligence. Congress is punishing our future generations with inflation, high interest rates and more taxes. Sadly a five-year-old cannot stop Dad’s recklessness, but as a voter you can stop Congress.