The National Debt Isn't A Problem

The National Debt Isn't A Problem

People are scared by big numbers. But what do those numbers actually mean?
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Time Magazine recently featured this as its cover.

And it is absolutely, positively, catastrophically, stupid. Here's why.

Two parts of the debt: bonds and interest

Our debt is actually just government bonds that our Treasury issues to people, banks, businesses and other countries etc., and a profit is made off of the bonds because they generate interest. For example, if you were to buy a 1-year bond for $100 with a 5 percent interest rate, you'd get back that 100 dollars, as well as the five dollars generated from interest.

A bond can be issued for as long as 30 years. When the bonds time is up, it has "matured". And until the bond has matured, The United States only has to pay the bond holder the interest, not the actual cost of the bond. And in many cases, a matured bond is just rolled over into the form of another bond.

Here's why this is all good news. Interest rates are near 0 percent right now. So paying for bonds/taking on debt is incredibly cheap, easy and worthwhile right now.

Yes, our debt is a lot of money. But so are our assets.

Of course, you don't want that debt to become unsustainable. Whether it be the interest rate, or the debt itself, those numbers are entirely irrelevant unless you scale it to our ability to pay it off.

For example, many students go into debt by taking out a loan to go to college. And the debt we take on is worth it because the careers that we go into after graduating will make us much wealthier in the future, and our new generated wealth then goes back into paying back our loans.

It's the same way with our government. Except it's a little better. People have to pay back their debts. Governments don't. This is because governments aren't people and they won't die in 80 years. So they can have debt for as long as they want, they just have to make sure that the value of their assets is greater than the value of their debt.

When the government issues a bond and uses that bond money to build a bridge, the government not only has more debt, but it also has more bridges. And those bridges generate a return on investment, and sometimes that return on investment exceeds the amount borrowed.

So in a weak economy, governments borrowing money to spend on a project with a much higher return on investment, is actually a very good thing to do, because the value of assets that the government acquires would be much greater than the value of our debt.

If the government finds things to invest in that'll have a higher return rate than a bond's interest rates, it should continue to issue bonds and run deficits rather than taxing people to fund those projects directly. This is a strategy we should be using right now, considering that interest rates are at historic lows, and there are several projects to invest in with return rates of well over 8 percent.

And when the economy grows as a result and has fewer things to invest in, they can take advantage of the broadened tax base, and run surpluses. But this should only be done in a healthy, recovered economy.

As long as the government keeps the value of its assets greater than the value of its debt, then the government will remain solvent and will continue to function. So not only is the national debt not a problem, but it's actually something that we need right now.

Cover Image Credit: Time Magazine

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6 Things You Should Know About The Woman Who Can't Stand Modern Feminism

Yes, she wants to be heard too.

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2018 is sort of a trap for this woman. She believes in women with all of the fire inside of her, but it is hard for her to offer support when people are making fools of themselves and disguising it as feminism.

The fact of the matter is that women possess qualities that men don't and men possess qualities that women don't. That is natural. Plus, no one sees men parading the streets in penis costumes complaining that they don't get to carry their own fetus for nine months.

1. She really loves and values women.

She is incredibly proud to be a woman.

She knows the amount of power than a woman's presence alone can hold. She sees when a woman walks into a room and makes the whole place light up. She begs that you won't make her feel like a "lady hater" because she doesn't want to follow a trend that she doesn't agree with.

2. She wants equality, too

She has seen the fundamental issues in the corporate world, where women and men are not receiving equal pay.

She doesn't cheer on the businesses that don't see women and men as equivalents. But she does recognize that if she works her butt off, she can be as successful as she wants to.

3. She wears a bra.

While she knows the "I don't have to wear a bra for society" trend isn't a new one, but she doesn't quite get it. Like maybe she wants to wear a bra because it makes her feel better. Maybe she wears a bra because it is the normal things to do... And that's OK.

Maybe she wants to put wear a lacy bra and pretty makeup to feel girly on .a date night. She is confused by the women who claim to be "fighting for women," because sometimes they make her feel bad for expressing her ladyhood in a different way than them.

4. She hates creeps just as much as you do. .

Just because she isn't a feminist does not mean that she is cool with the gruesome reality that 1 in 5 women are sexually abused.

In fact, this makes her stomach turn inside out to think about. She knows and loves people who have been through such a tragedy and wants to put the terrible, creepy, sexually charged criminals behind bars just as bad as the next woman.

Remember that just because she isn't a feminist doesn't mean she thinks awful men can do whatever they want.

5. There is a reason she is ashamed of 2018's version of feminism.

She looks at women in history who have made a difference and is miserably blown away by modern feminism's performance.

Not only have women in the past won themselves the right to vote, but also the right to buy birth control and have credit cards in their names and EVEN saw marital rape become a criminal offense.

None of them dressed in vagina costumes to win anyone over though... Crazy, right?

6. She isn't going to dress in a lady parts costume to prove a point.

This leaves her speechless. It is like the women around her have absolutely lost their minds and their agendas, only lessening their own credibility.

"Mom, what are those ladies on TV dressed up as?"

"Ummm... it looks to me like they are pink taco's honey."

She loves who she is and she cherished what makes her different from the men around her. She doesn't want to compromise who she is as a woman just so she can be "equal with men."

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We Lived To See History Made In The 2018 Election And That's Pretty Freakin' Awesome

Politics aside, we lived to see history.

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November 6th was a very memorable day in US history. Politics aside, election day was a very monumental day of change for the minorities of our country. Several women, Muslims, and members of the LGBT community were elected into office this year which is a huge step for our country.

In terms of women being elected, there was a record-breaking number in this year's election. 235 US house of representatives, 22 US senates, 3379 State of legislatures, and 16 governors (YASSS LADIES).

An openly gay man was also elected governor of Colorado, along with an Oregon governor who identifies as bisexual.

After the major hype of election day results, all headlines read "Midterm election will feature the most diverse group of candidates ever" and "The midterm elections have made history with several firsts". And I think it says a lot that the media is taking notice and praising the diversity.

The steps that we as a country are taking towards openness and acceptance of every individual no matter what their race, gender, or sexuality is something that I am proud to be part of.

Webster's Dictionary defines the term "vote" as: a usually formal expression of opinion or will in response to a proposed decision.

An expression of opinion.

Which everyone is entitled to, no matter who they are or what their opinion happens to be.

Politicians serve increasingly diverse communities with a wide range of different needs. Minorities, people with disabilities, and the elderly have a number of group-specific concerns that should be addressed by people who understand those concerns first-hand.

Think of it like this- who would know better about the healthcare for ***NOT DONE, ADDING ON***

Interested individuals from different minority communities will also draw on a larger pool of candidates. It encourages political participation by giving them a chance to stand up and help bring their particular issues to the forefront.

Diversifying candidates will diversify policy.

And the meaning of "diverse" goes way beyond just race or sex. Having an office of vastly diverse skills and passions is also beneficial because it gives more depth and balance to a department. If everybody political leader came from the same background and had the same morals, we wouldn't be able to properly address the needs of every individual.

In a nutshell, political diversity is how we can fulfill the needs of individuals in every political party. And I hope this election opens the doors for more people to have the courage to stand up for what you believe in and for what you want to do. No one should ever feel like they cannot accomplish their goals while still staying true to yourself.

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