by Lam Luu

Created on: September 16, 2008

Almost 9.7 trillions and counting, that's the size of the US' public debt. Almost 10 trillions. It is joked that a whole new type of data is created in our CPU just to store that ridiculous number (by the way, don't believe in nerd joke). As James Carville put it, debt is like alcohol: if you have a little everyday, it's good for your health; however, if you drink too much, you will get into troubles, big ones. The US is drunken. Decades after decades of "trickle down economics," with a short break with president Bill Clinton, the richest country in the world has accumulated the biggest public debt in the world. That, by the way, does not count the staggering inequality in the US today. The next president must definitely raise taxes, to fight against debt and for economics prosperity as well as justice.

First, let me explain why high debts and little social spending are bad. Some people do have justified of large debt, but they cannot get the size of the problems created by the debt. Most critically, debt reduces the value of the money. In other words, debt celebrates inflation. Goods' prices will rise faster than normal thanks to the debt. For everyone, this means that their property, be it wage, investment, or saving, will be reduced! With inflation, investors would invest less, consumers would consume less, producers would produce less. And the economy suffers. Terribly. Furthermore, debts are even more troublesome in the US. Politicians use debts as justification to cut social programs, and forget about infrastructures. This is disastrous! I mean, seriously, why Google could become Google? Because they have a large infrastructure, the Internet, to tap in. Hence, from a small start-up, they could concentrate on their goods, search engine, and contribute to the economy. Without infrastructure, without social programs, there would be less start up companies, and the chance of success of those small companies would shrink. This will take away to creativity and dynamic of the economy, which, by the way, is the strong edge of the US! Education, too, suffers from lack of funding. CNN reported that 88% of 8 graders in Washington DC is not good enough in reading. 88%, more than three-fourths of all 8 graders. This means people have less skills, thus the economy suffers. In the end, the "efforts" to fight debt produce miserable side-effects.

Second, about foul treatments for debt. "Tax cuts will pay for themselves" and "trickle down economics" do not work. Actually,

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