>So I’m watching CNN the other day, and all of a sudden I see this ad by an organization called Defeat the Debt. Pure shock value. I’m sure it hasn’t gotten the attention as much as they would have liked though (except of course for this), since when I searched for it on YouTube I had to type in the full name of the video to find it. Plus it has less then 50,000 viewings.
After I saw this ad, I was surprised more people weren’t talking about it. After the whole uproar about a school in New Jersey singing songs about President Obama, isn’t just as ludicrous to have children discredit the pledge of allegiance? And get paid for it.
Not to mention the fact that the policies they are promoting are wrong. But before I get into that, let me premise it by saying Defeat the Debt is a front group for Employment Policies Institute (EPI) which is lead by Rick Berman. He is a lobbyist who has been hired by the resturaunt and tobbaco industries to promote libertarian (keep government out of my pocket) views. Now if you’ve ever had a conversation with a libertarian, you know there’s never any winning because they will just tell you you’re wrong and leave it as a fact.
Here’s an example:
Liberal: Man, I really hope Congress passes a public option for health care.
Libertarian: No, let the market do it’s thing. It always works itself out.
Liberal: No it dosen’t, look what just happened to the stock market and what the federal government had to do. Plus prices are rising so fast no one will be able to afford health insurance in a open market soon.
Libertarian: You’re wrong.
See, you just can’t win with these guys!
So anyway, on the “Understanding The Danger” page, Defeat the Debt says:
Other countries buy our debt because it is a good investment — they trust us to pay them back, with interest. The most recent figures show we owe about $3.3 trillion to the governments of other countries, including nearly $800 billion to China alone.
All true. But this will only happen if China asks for their money back, which they won’t. Why? Because it would freeze up the credit markets and no one would have any money to buy the exports China is sending into the country. There was just a huge shock to the system, if China does ask for their loans back it would only start another one.
At the G-20 summit in Pittsburgh, emerging markets and developed countries decided that the only way the world economy would be fixed is if they worked together.
So yeah, it really dosen’t feel good to owe so much money to other countries. But one of the reasons why China decided to take on our debt was because (as Defeat the Debt mentioned) they saw it as a good investment. America isn’t going anywhere. If China really does want that money back, they’ll enact policies to help America’s economy so they can get thier money back in the future.
The worst thing about places like EPI is that they use scare/shock tactics only to get people excited over something they may or may not have a full understanding of (See: Death Panels).
Part of the reason we have debt now is because of the stimulous package (to create jobs) and the TARP program (or better known as bailouts) which most economists now agree helped calm the crisis. But anyone who’s trying to look for a job right now can tell you the economy is still struggling. And the last thing those people need is something else to worry about.