Never create debt unless that debt creates wealth?

Question

This is a philosophy that has made many people wealthy. It is a philosophy that has been lost in America today.

Spending future earnings today on consumer items is foolhardy and a sure way to financial ruin. Whether an individual, a business, or a government bases their current expenditures on income not yet earned, the outcome is the same: disaster.

When creating debt, there must be a net gain when the debt is finally paid. In government funded programs like education, building infrastructure, or national security there is a net gain in an expanded economy and a larger tax base.

Pork barrel projects and entitlement programs, however, create a debt for which there is no return.

Runaway spending in both the private level and government level has created debt in the USA equal to $1.01 for every $1 of assets. When those numbers are put on a balance sheet, any CPA will tell you your bankrupt.

I would be interested in knowing just how those people who think the USA can take on the cost of a national health care system expect to finance the program. Health care cost accounts for 17% of the gross national product in America. Just how is a bankrupt system going to pay for such a huge expenditure that gives no net return.

Answer 1

I like your thinking.

On the healthcare front, however, I see it as being the combination of higher taxation and enforced corporate contribution. Neither are going to be well liked, but perhaps in 50 years, when new generations have grown up with a system that cares for the health of ALL citizens, we will see the return...

Answer 2

I watched a healthcare committee meeting and the dems had the you know whats to bring out a list of taxes from other countries around the world. they talked about how all the countries that had national healthcare had tax rates of 40 to 43% and their economy wasnt "that bad" ofcourse their growth was less than 1 percent over a 3 year period.

But the biggest thing is it will be paid for by the doctors. This is exactly what is going on in the pediatrics offices across the country and we have seen a decrease of over 30% in pediatric doctors and is growing every month due to medicaid. My wife did a rotation in a pediatrics office while in med school and the doctor is now closed. he said basically it works like this.

No matter what the child is in for the doctor gets an avg of $7. no matter what the cost of treatment. One specific account she told me about was a kid came in on and ambulance that the doctor has to pay because ambulances are private contractors, she had to see the nurse, fill out the papers that cost money. took away a spot for someone that was paying because it was an emergency coming in on an ambulance and all it was was a SUNBURN. the doctor estimated its cost to him after breaking down electricity, staff pay, medicine and ambulance over $300 to treat this kid for a sun burn and he was paid $7. Imagine getting 10 of these a day and in some cases in west texas with illegal immagration getting 30 to 40 a day you cant afford to stay in business. This is a microcosm of what a national health system for everyone would do.

Answer 3

The real problem is that to have workers you must take care of them .The normal progression is that those who have been doing the job replace themselves with others who were hired in long after you . Thus if you have been careful with your earnings you have made enough to retire and take it easy . Investing the profits from your labor for the future . This is simple common sense . If you have not prepared for your medical needs that you know are coming is it up to me to pay for them . If you have worked for me then yes it would be in my interest to protect the investment I made in training you and one day I expect before you go that you also train your replacement . This is in an idealistic concept and does not happen often . We see where It did happen is in the government who continues to care for its own and electing those who will do them the most good . This means the people end up suffering not because the government went in this direction but for failing to get on board in time and being left out in the cold . Employers have never had to care for workers and we have many people who live off the labor of others while not caring for them long term . The NFL is an example of a business that takes in billions and has a horrible retirement program for those people who abuse their bodies for pay . Should My tax dollars go to benefit or save an ex football player who partied for 10 years went broke 10 years later and now can hardly move with out the benefit of drugs which make him unable to work effectively .
Health care is a big issue and unless you go after the people who benefit across the board with a graduated tax system like we had 40 years ago .
Yes we had debt back then too but we where spending billions on the cold war space race and wasting billions . We need to collectively come to the conclusion that people suffer from the bad choices we make today tomorrow . A huge divide is a foot in this nation not between democrat and republican but rich and poor . Many people who are rich do not even acknowledge it . Spend happy people who think the gravy train is always gonna be around . Over a million people lose homes each year and people with a little cash can snap up deals if they choose too . By a little I mean a lot actually Working capital in the neighbor hood of 200,000 and more to really be able to play in the real estate market at the bottom end . But you can make that a reality on an average income if you are careful .
I should not be forced to make up the problems with health care and we need an aggressive inheritance tax of 80% or more and anyone who can not survive on a million bucks and a home is not producing and does not deserve our sympathy . People have it backwards and all think they will become rich and set up a dynasty that will last a thousand years . I do not want all the money and property of a man with 30,000,000 to go to uncle sam ,he can leave his relatives a million a piece and sam can keep the rest is all . That means that if he wants leave each person in his family a million bucks three kids husbands grand kids nieces nephews how ever he wants but cap it at a million per household . This will put money into the system as it is meant to be .
I just watched a show last night about people tossing million dollar parties and multi million dollar parties .Who hire rockers and entertainers for 50,000 or 100,000 to play the private parties . How do you make that kind of money without taking it from the working people . We need some justice in america and it begins with paying people a decent wage . This should allow them to save and invest enough to take care of themselves . Hospitals and doctors need to lower costs dramatically if we are going to be able to provide care for people .
Families need to be tapped for the care of family members . It is wrong for me to pay a bill that the family should cover . My parents brothers and sister get sick it is my responsibility to help and pay regardless if I did not like who they married or how they raise the kids . We write people of in this country and make it the nations problem . Easy to say hey not my problem you married that loser . I told you to stay in school what do you expect . Well bottom line its a families job and not the nations we have raised people to go on there own path rather then work together . This has caused our nation to fall apart .
I will be glad to pay a little more if it would make a difference and get things back on track .
How ever i think it is just more money wasted with no long term return .

Answer 4

Thoughts are okay, but your question is?

How about if we charge a 50% tax on all money leaving the USA? That would ensure that we are making money from all these foreign borns who think it's our job to support the rest of the world.