Advanced Search
Like Most, Minnesota Needs a Raise
The compassion between a household and a state or national budget are wrought in the best of times, but one rhetorical flourishes that has always seemed problematic is the idea that household and the state have to live within their means.
While this seems to be a truism which we should live by, it really fails to recognize how life is actually lived. Are there people who get into debt because of frivolous spending? Maybe, but that is not what pushes the problems of individual debt in America. While I do not want to go into details of my own life I do think my experience gives some insight into what drives debt.
I have too much debt, but I have never had a credit card, nor do I own a home, or even a car. The reason I have debt are the reasons average American's fall behind. I am in my twenties and so not that long ago I was a college student, and today that means carrying some debt. Also, this year I faced a pretty serious medical issue, and while I have insurance, that has not covered every expense I had. My experience has taught me how perilous an individual's finances can be, how if I had a car or house payment, I could be so far behind that I would be facing foreclosure or bankruptcy.
What does this say about living within our means? I think that it indicates that debt is not about frivolousness. We live in a society where many do not have transportation options, particularly because as a society we have pushed suburban development, and this means most people need cars. Additionally, people need places to live, whether rented or owned that is a cost, and owning is an admirable goal and a core part of the American dream.
While we can talk about ways to find real solutions to the spiraling costs of higher education the fact is if you are a young adult or the parent of one, then the cost of higher education really means having some debt. And lastly, if you are sick what can you do except pay to get better, whether or not you have insurance that will cover the costs.
All these divers of debt are not luxuries, they are necessities; that they drive debt is less indicative of bad financial planning, and more a recognition of the failure of our society to create jobs that sustain a vibrant middle class who can withstand unforeseen costs.
In the same way, education, transportation, and health care are necessary costs for our government and the argument that cuts to them are necessary to live within our means only serves to show the rupture between how most people live and the perception the political class have of regular life.
Posted in Fiscal Policy | Related Topics: "No New Taxes" Personal Finance Public Policy Budget Deficit