Our social security problems continue in the U.S. and we are walking a fine line my friends. Here’s the deal:
Our country is in massive debt, heading towards the $14.3 trillion mark (yes, trillion with a “T”). Take a look at the U.S. Debt Clock for actual, real time numbers. The problem is that we have a $14.3 trillion debt ceiling that we are going bump into around August 2.
It’s kind of like your family credit card. Let’s say that you have a credit card with a $5,000 limit. And with all of your happy-go-lucky spending sprees, you are rapidly approaching that limit. Let’s say your balance is now $4,500. You have two choices:
1) Stop the spending sprees and start paying down the debt… or
2) Keep the spending spree going strong
If you keep spending you’re going to run into a problem aren’t you? You are going to run into your debt limit.
Oh my! What to do?? Again, you have two choices:
1) Let your spending spree slam against your debt limit, preventing you from paying future obligations
2) Call the credit card company and ask them to RAISE your debt limit so that your spending fun can continue merrily along
What happens if your bank agrees to raise your limit? Happy times! But only temporarily right? Eventually you will run into the same problem with an even bigger debt to deal with. And if this continues, you are leaving your children and your children’s children with the burden.
This is what’s happening in the U.S. right now (and several other countries). We are rapidly approaching our debt ceiling and Congress is bantering back and forth on whether or not the debt ceiling should be raised. I’m no expert in this but there are ramifications either way.
I really want you to think about something. I want you to think about how vulnerable you are when you depend on someone else to take care of you and your family, especially the government.
Social Security Problems
The president announced yesterday that Social Security checks could be withheld or delayed if an agreement is not reached to raise the debt ceiling. That will affect millions of people. On top of that, inflation can set in, interest rates and taxes could rise, more jobs could be lost, etc, etc.
Like the credit card example I used earlier, if the debt ceiling is raised, we may see some temporary relief. This is called “kicking the can down the road”. It will still have to be dealt with.
Whatever happens, we are looking at making some tough choices coming up soon.
What’s the real problem?
Is the real issue all about Social Security problems? Or the debt crisis? If we look at this by taking the view of personal responsibility, the government doesn’t owe you anything. And you have no control over how your government handles debt and spending (well, I guess you do somewhat. Just be careful who you vote for.).
The responsibility lies within you. As a society we need to learn to take care of ourselves and our families. We need to reverse this trend of dependency and victim-hood.
Millions of people of all ages are taking that responsibility seriously and they are starting their own businesses, paying off their own debt, funding their own retirement and setting up a future for their children to do the same.
Is that something you’re ready for?