A Silent Foe: Examining the National Debt

Today’s political climate is charged with debate. Everyone seems to have their pet issues and their own assessment of what’s, “wrong with America.” Global warming, AIDS, abortion, and foreign policy are all issues that are being discussed. Yet one of the most frightening dangers to America has gone almost unchallenged for decades: the national debt.
At 8.8 trillion dollars the gross Federal debt would make a stack of dollar bills that would reach from the Earth to the Moon and back with some to spare.1 The numbers are astounding. It is almost unimaginable that a nation could sustain itself under such a load. It is a testament to the greatness of America that we have not yet fallen, however this cannot continue forever. Noted economist and financial advisor Larry Burkett said in his 1991 book, The Coming Economic Earthquake:
“The national debt is undermining the very freedoms we cherish.”2 “The time is approaching when the government can no longer fund its overspending without destroying the business base of America. When that time comes, there will be few options available other than the printing of more money. Every nation that has gone this route has sparked hyperinflation that eventually wiped out the middle class.”3
Sooner or later the debt will crush us as we scramble to simply pay the interest on what we already owe. According to the U.S. Treasury Department, the federal government paid almost $406 billion dollars in interest on the national debt during the 2006 fiscal year!4 It would seem obvious to anyone that we simply cannot spend more than we posses. It is a fundamental rule of financial management: if you spend more than you make you must cut your spending. Yet we almost never hear of people, politicians or otherwise, speaking of making significant cuts or sacrifices. Why is this? There are a host of reasons. To properly understand this issue we must look at both the history of the national debt and the lessons that can be learned from it. Please excuse the limited nature of this survey. This is a complicated and multifaceted issue and I would encourage further study. Due to the limited space that we have I am only going to look at the history of the debt in its early years.

The History: 1790-1812
One of the single greatest contributions to our nation’s debt has been war.5 Consequently, the United States has never been without debt. Born out of the blood of the American Revolution, this nation emerged victorious from a heroic struggle for freedom and independence. Yet the war was just the first of many trials. After the failure of the Articles of Confederation, Congress drafted a new document, the Constitution, to provide more unity and power for the central government. With the creation of the Executive branch the first presidential election found George Washington unanimously elected as the first executive of the United States. “The most urgent problem facing Washington’s administration was the payment of the national debt. Without a sound financial policy, the new government could not hope to gain the respect of either its own citizens or foreign nations.”6
Realizing this, Washington appointed Alexander Hamilton to be the first Secretary of the Treasury. “As Secretary of the Treasury, Hamilton’s burning ambition was to build a strong, prosperous, diversified economy in which political independence would find its roots.”7 Like Washington, Hamilton realized that America’s independence was still threatened by the debt that loomed over them. Without meeting its financial obligations the young nation could not hope to gain the trust necessary for a democratic rule.
At the time of the election, “The United States owed more than $11 million to foreigners and over $40 million to its own citizens.”8 Hamilton adopted an aggressive program to fund this debt that stood at $18.55 per person.9 Yet the desire to pay off the debt existed in the people as well as the leadership. Schouler in his History of the United States says: “The people, as the late campaign showed, were strongly for entering upon the regular reduction of the public debt.”10 Indeed the desire to pay off the debt was so pervasive that it continued to be strong in Jefferson’s administration from 1801-1809.
Jefferson took great steps to limit the size and scope of the government, cutting salaries, the size of the military, and many appropriations. “They [Republicans] made a conscious effort to cut federal spending and reduce the national debt. Jefferson and Secretary of the Treasury Gallatin agreed that the national debt should be paid as soon as possible.”11 His administration advocated thrift and industry and a closely kept budget. “Under Jefferson’s rule about $33,580,000 of the public debt had been paid.”12 So optimistic were the American people at this progress that, “…Gallatin expected to cancel the national debt about the year 1817.”13
This is where the, “…one black speck appeared in the horizon.”14 We said earlier that the single greatest contributor to our nation’s debt has been war. This maxim proved true in this case as well. The prosperity and peace that had been Jefferson’s ideal were soon to be swept away in an event now known as the War of 1812. This war destroyed the optimistic notions of quickly paying off the debt that had been commonplace just a few years earlier. This, very, brief look at the early history of the national debt can help us to identify some practical solutions to paying off the debt today.

Lesson One: War must be avoided at all costs
Had it not been for the War of 1812 we could have almost certainly paid off all of our debt before 1820. The debt that threatens us with a financial crisis in 2007 could have been dealt with almost 200 years ago. It was the war that perpetuated our descent into debt and insecurity as a nation. Please don’t misunderstand me; there are times when war is the only just course of action. We should never sacrifice our honor or justice for material prosperity or security. However, as Cal Thomas pointed out in a recent article: “Leaders of many nations, including America, have used patriotism to persuade citizens of policies that are not always in their country’s best interests. Hitler’s deputy, Herman Goering, cynically observed: “Naturally the common people don’t want war; neither in Russia, nor in England, nor in America, nor in Germany. That is understood. But after all, it is the leaders of the country who determine policy, and it is always a simple matter to drag people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is to tell them they are being attacked, and denounce the pacifists for lack of patriotism and exposing the country to danger. It works the same in any country.””15
We need to take this wisdom to heart and carefully examine a situation before we enter into war. Even now, many are advocating a war with Iran. Perhaps war is justified, that is for Congress and the American people to decided, but one thing is certain. We should carefully and calmly examine all the evidence, arguments, and agendas that come into play with any cry for war. History shows, as Thomas said, that America has been led falsely into war before now, and without vigilance and care it could easily happen again.

Lesson Two: Desire
One of the things that stood out to me as I studied the early history of the debt was the intense drive that both the leaders and the people had to pay off the debt. There are many today who either defend the debt or are apathetic. These people ignore the wisdom of our founding fathers, of Washington, Hamilton, Adams, Jefferson, the list goes on. Listen to what our first president’s views were on this issue: “The President’s opening message had taken decided ground in favor of plans for a gradual reduction, urging measures “to prevent that progressiveness of debt which must ultimately endanger all governments.””16 Our founding fathers were not infallible, yet there is much wisdom to be gained and even more to be lost if we do not even consider their words. The days of these great men stand in contrast to our own. Then the whole country knew that the debt had to be dealt with. “The foreign debt, all admitted, must be paid off according to contract and extinguished as speedily as possible…”17 If we want to see our current debt, which dwarfs the obligations of the early republic, paid off then we must make it an issue. It is to often glossed over in the political arena and the apathy that pervades our country on this issue, and others, could very well destroy us.

Lesson Three: Sacrifice
One of the single most important lessons that can be learned from this brief look at history is the importance of sacrifice. In the first part of this paper I asked the question why? Why is this not an issue that is talked about by people, politicians or otherwise? How is it that we can go through an election cycle and never discuss a $9 trillion dollar debt!
The answer is really rather simple. Politicians know that this is a problem. Many of them even recognize the solutions. However any solution to this massive problem will be painful. We can cut back on our spending, stay away from pointless wars and raise taxes all we want and the debt will not go away. A quick look at the federal budget will show that the two largest slices of the federal pie go to defense and welfare. Here’s a quick breakdown of some of the federal budget:

Defense- $631.3 Billion
Social Security- $589.2 Billion
Medicare- $372.1 Billion
Medicaid- $191.9 Billion
Other Spending:
Helping people in need- $179 Billion
Education- $70.8 Billion
Healthcare- $54 Billion
Labor- $46.5 Billion
Environment- $30.3 Billion 18

As you can see much of our federal budget, (and the statistics listed above are just a part of that,) is used in government handouts! As American citizens we must begin to pay our own way. This means that the young need to pay for their own college, without the aid of government grants and scholarships. This means that families need to take the responsibility to care for their poor family members. This means that kids need to learn to care for their elderly parents instead of passing on this God-given obligation to the government. Listen to this, rather lengthy, quote from economist Larry Burkett: “Without fundamental changes to health care, welfare, and Medicare, the problems can’t be solved. Recently I tried a personal survey on just one issue: Are the current retirees willing to sacrifice a portion of their “entitlements” for the next generation even if it means paying a larger portion of their own medical expenses, taking less cost of living increases, or even taking less actual income? After having suggested these ideas to many retired people, I found that the response was not encouraging. The normal reaction was, “I paid my dues. I have it coming. ” Perhaps they are right. I know the government made many promises to a lot of people in the past. But what if everyone takes the same position; what then? College students need government loans to go to school. Welfare recipients need what they are receiving (and more). New home buyers need FHA and VA loans to be able to get into their first homes. Depositors need government protection for their savings deposits; and so it goes. At some point we must make the hard choices that require placing the interests of the next generation ahead of our own, or one day they will look back on us with contempt.”19

This is an important and complex issue. In this paper I have not had the time necessary to give a comprehensive treatment of it. There are so many factors that I have not dealt with, and many stones that have been left unturned. It is my hope that this paper will spur you, the reader, on to a deeper study and understanding of this issue. At any rate I hope that this paper has challenged you in your thinking, and challenged you to fight against this threat to our security.


Endnotes:

1 “What’s a trillion?” 2007. How the U.S. Government raises and spends $3 Trillion per year. Online. www.govbudget.com/front/?p=whatsatrillion
2 Burkett, Larry, The Coming Economic Earthquake. Moody Press, 1991. Pg. 115
3 Ibid. pg. 112
4 “Available Historical Data Fiscal Year End.” 2007. Online. www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
5 The World Book Encyclopedia, Chicago, IL: Field Enterprises Educational Corporation 1961. Pg. 29
6 Lowman, Thompson, and Grussendorf. United States History: Heritage of Freedom. Pensacola: A Beka Book, 1996. Pg. 144
7 Heilbroner and Singer. The Economic Transformation of America:1600 to the Present. New York, HBJ Publishing. 1984. Pg. 83
8 Ibid.
9 The World Book Encyclopedia, Chicago, IL: Field Enterprises Educational Corporation 1961. Pg. 29
10 Schouler, James. History of the United States of America. 1880. Vol. 1. New York: Dodd, Mead & Company. Pg. 234.
11 United States History: Heritage of Freedom. Pg. 162.
12 Schouler. Vol. 2 Pg. 221
13 Ibid. Pg. 81
14 Ibid. Pg. 150
15 Thomas, Cal. “Love of country crosses party lines.” Wichita Eagle 4 July, 2007: 7a
16 Schouler. Vol. 1. Pg. 301
17 Ibid. Pg. 146
18 “2006 Budget” 2007. How the U.S. Government raises and spends $3 Trillion per year. Online. www.washingtonbudgetreport.com/gb/front/?p=spending
19 Burkett, Larry, Whatever Happened to the American Dream. Moody Press, 1993. Pg. 25

The American Flag

"I Pledge Allegiance to the flag of the United States of America; and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all."

Do you know that at military funerals, the 21 gun salute actually stands for the sum of the numbers in the year 1776?

I hope you have noticed the honor guard pays meticulous attention to correctly folding the American flag 13 times? You probably thought it was to symbolize the original 13 colonies, but we learn something new every day! Be surprised at the following only because "they" quit teaching this around 1955 in public schools... some of you out there might remember.

* The 1st fold of our flag is a symbol of life.

* The 2nd fold is a symbol of our belief in eternal life.

* The 3rd fold is made in honor and remembrance of the veterans departing our ranks who gave a portion of their lives for the defense of our country to attain peace throughout the world.

* The 4th fold represents our weaker nature, for as American citizens trusting in God, it is to Him we turn in times of peace as well as in time of war for His divine guidance.

* The 5th fold is a tribute to our country, for in the words of Stephen Decatur, "Our Country, in dealing with other countries, may she always be right; but it is still our country, right or wrong."

* The 6th fold is for where our hearts lie. It is with our hearts that, "We pledge allegiance to the flag of the United States Of America, and to the Republic for which it stands, one Nation under God, indivisible, with Liberty and Justice for all."

* The 7th fold is a tribute to our Armed Forces, for it is through the Armed Forces that we protect our country and our flag against all her enemies, whether they be found within or without the boundaries of our republic.

* The 8th fold is a tribute to the one who entered into the valley of the shadow of death, that we might see the light of day.

* The 9th fold is a tribute to womanhood, and Mothers. For it has been through their faith, their love, loyalty and devotion that the character of the men and women who have made this country great has been molded.

* The 10th fold is a tribute to the fathers, for they, too, have given their sons and daughters for the defense of our country since they were first born.

* The 11th fold represents the lower portion of the seal of King David and King Solomon and glorifies in the Hebrews' eyes, the God of Abraham, Isaac and Jacob.

* The 12th fold represents an emblem of eternity and glorifies, in the Christians' eyes, God the Father, the Son and Holy Spirit.

* The 13th fold, or when the flag is completely folded, the stars are uppermost reminding us of our nation's motto, "In God We Trust."

After the flag is completely folded and tucked in, it takes on the appearance of a cocked hat, ever reminding us of the soldiers who served under General George Washington, and the sailors and marines who served under Captain John Paul Jones, who were followed by their comrades and shipmates in the Armed Forces of the United States, preserving for us the rights, privileges and freedoms we enjoy today.

There are some traditions and ways of doing things that have deep meaning. In the future, you'll see flags folded and now you will know why.

This article is taken from the Kansas Army National Guard Website