Sunday, August 13, 2006

An apology to our youth

"The principle of spending money
to be paid by posterity is but swindling futurity on a large scale."
Thomas Jefferson

The following is an open letter from Ed Hinders of Canyon, Texas. The copy that appeared in Hinder's local newspaper was accompianied by charts and tables demonstrating the severity of the national debt.

I aplogize to the Youth of America for the failure of my generation to be responsible stewards of our financial status, as we are transferring our debt to you with less ability to pay for it. This is indicated by the rapid deterioration since 1982 of the twin deficits, which are: 1) gross federal debt / gross domestic product (GDP), and 2) international trade deficit.

At the end of the Carter administration and the beginning of the Reagan administration, our debt was $995 billion, and the GDP $3.061 trillion (or 32.5% of GDP). This was the lowest and best debt/GDP ratio since WWII.

Today, our debt is $7.905 trillion, and the GDP is $12.290 trillion (or 64.3% of GDP). This is the result of our debt increasing much faster than the economy during the Reagan, Bush 41, and Bush 43 administrations.

In the 12 years of the Reagan and Bush 41 administrations, the debt grew 437% while the economy grew only 214%. During the 1st term of Bush 43, the economy grew 123% while the debt grew 137%.

During the 8 years of the Clinton administration, the debt grew 133% while the economy grew 153%. The debt/GDP ratio declined during the clinton years as the ecenomy grew faster than debt.

In 1982 our international trade surplus was over $225 billion and we were the world's largest creditor nation. By 1986 we were the world's largest debtor nation, and today our cumulative trade deficit is $5.2 trillion. In 2005 our trade deficit was a record $782 billion.

Do these deficits matter? Yes. By the end of this decade it is estimated that our national interest cost will be more than all discretionary spending combined, meaning less government services and increased taxes. If we do nothing about our trade deficits, others will claim our assets and incomes. This means they will increase control over politics and our freedoms will be reduced.

Is this a moral issue? It should be. Why have many Christians been AWOL on this issue? It is high time that the American People regained control of America. We need to get the facts, get involved in politics, and vote for candidates who have the vision to honor, rather than burden, our Youth.

Our Youth are depending on us.

Ed Hinders
Canyon, TX
Thank you Mr. Hinders for your letter!

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