Friday, February 25, 2011

Another option to get out of debt?

   In his article titled, "The sale of the century," Niall Ferguson supports the proposition of selling U.S. assets for the purpose of reducing the huge national debt. Ferguson's intended audience are primarily citizens concerned about our country's debt crisis and are open to options other than tax and cut. I would have to say that I am one of those citizens, and agree that the government needs to start acting like a business and sell off assets to balance its books. Unfortunately, I am afraid of what our politicians would do with the money from such sales. Ferguson explains that, "The root of the problem is, of course, a lack of political will,"  and politicians would still be reluctant to cut programs that would make their constituents unhappy. If we are not careful, that money will be spent and not used to reduce the national debt.
  
   Ferguson also comments on the proposed privatization of large and small firms, and even the nations highways Letting other countries lease or buy them to handle revenue and maintenance. My only concern with this idea is double taxation. We must make sure that if this is to be done, that tax dollars are not spent to build new roads that are then turned into toll money that flows out of the country. The idea is to relieve the our government of the maintenance costs associated with the highway system. In this financial crisis that is the hardest since the great depression, we need to open up to options not as desirable as those during times of plenty.
  
   To get out of debt you have to increase income, cut costs, or both and one way to increase income is to sell assets. If our Government acts wisely, we can make great strides by selling assets that we can afford to sell. As long as this money is used wisely, and not diverted to pet programs, we can begin on the long hard road of financial independence.




  

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