Star Parker: National Debt Reflects a Nation That Has Lost Its Way

Tensions over raising the nation’s $31.4 Trillion debt ceiling are increasing. The headline that should be flashing before every American is that the country is not functioning.

This sad and troubling fact must be acknowledged in order to make things better.

How is it possible that our national debt is equal to the size of our entire economy, which amounts to $32 trillion? Where were all of us when this happened? In 2008, our GDP was only 39.2% and not 100%.

Taxation without representation was one of the most popular protests that fuelled the American revolution. However, this is exactly what we are seeing today. Who is responsible for the $32 trillion of debt? You and I.

Federal spending can be funded in one of two ways. You can choose to pay taxes or take out debt. Politicians hate taxation. They have to tell citizens upfront that they are taking their money. Borrowing is a way to achieve the same goal without asking.

Congress had not passed another $1.7 trillion of spending prior to its shutdown. These spending amounts were not covered by taxes. This is added to the massive debt that you and I owe.

Milton Friedman, economist, said it: “There is no such thing as a free lunch.” We pay for everything.

Instead of paying our taxes honestly, we pay the debt via inflation and slow growth.

We need to realize that spending and debt are not just about accounting. It is about principles.

Our current crisis stems out of our failure to adhere to the basic principles that God founded a nation free from all control.

A nation free from corruption, irresponsibility, and big government is not possible under God.

Let’s take a look at so-called entitlements: Social Security, Medicare and Medicaid.

Our annual spending is almost two-thirds mandatory spending — entitlements. Rest is discretionary spending, interest paid on debt, and the rest are discretionary.

When I tell Social Security that I am entitled to it, I receive letters confirming my assertion. “Don’t call this an entitlement! I paid for it!”

But the label “entitlement” This government label refers to payments that the government must make. It is not used for discretionary spending like defense spending.

People who consider this a personal right need to ask themselves if they have the right to be free from the system. It is not, however. The government can still make you pay payroll taxes. It can also make payments to your retirement account. The government decides which taxes and payments to be paid.

We have even more dishonesty.

Social security is insolvent. According to the trustees of the system, there is not enough money to meet obligations that will begin in 2034. This is eleven years ago. Every American young worker must now pay taxes into a system with insufficient resources to pay for promised benefits.

There has been much discussion about whether entitlements should be part the debt ceiling negotiations. Yes, I agree. These programs aren’t broken. It is just too complex to be fixed in a matter of hours.

Social Security reform should not be about cutting corners, but rather about reforming and changing the entire system.

The system is flawed because it does not follow American principles of ownership, personal responsibility and accountability. It is dependent on the government.

If Americans could own their payroll taxes and invest directly in retirement accounts, they would be able to earn far more without taking on unnecessary risk.

We are living in dishonesty today because we allow government to control so much of our lives. In a country where people are supposed to be free and accountable only to God in Heaven, we have irresponsibility and corruption.

America is in need of major changes. Only we can decide if we want a better future.

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