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Jay Evensen: Credit card debt will soon be all of society's problem

The underlying truth to the entire economic meltdown is that we, our country, and to a large extent, the entire world, had grown accustomed to living on ever increasing levels of debt. All debt, whether personal or public, is nothing more than a promise of future sevitude. I receive something today in exchange for the promise of paying back based on my future earnings In terms of public debt, the future earnings of the entire nation have been comitted to paying back the debt and interest.

THIS IS A DISASTROUS POLICY, and has been for years.

I have lived extremely frugally my entire life. I've lost 60% of the savings that I've accumulated during that frugal life. I have no debt other than my mortgage. And now the government is about to obligate me and my posterity to paying off the debt of SOMEONE ELSE?!?!?

One answer to getting people to spend AND allow many to get out of debt is to make credit card debt tax deductible. This would mean that taxpayers not in debt would help those who want to get out of debt to do so, and at the same time it would likely increase spending by many which will get the economy revving. I have no credit card debt, and my mortgage is paid off, but I still need my job to pay the other bills so I would sure like to see people start buying lots more goods and services, and one way is to accomplish this is to make for credit card debt tax deductible.

The last thing the government should do is make credit card debt tax deductible. In fact, the government should do the opposite, lower overall tax rates and get rid of all tax deductions.

I wish government would stop trying to control public behavior through the tax code. You shouldn't buy a car or a house or make an investment based on what the tax policy is. You should do those things because they make good financial sense. Likewise, you shouldn't have children or give to charity because the government will give you a tax break. You should do those things because they make you happy.

The result is that we have a tax code that takes a library to store and a dozen tax attorneys in order for the average company or citizen to comply fully.

We hear cries everyday to get government out of our bedrooms, away from our personal conversations, and away from our other personal decisions, yet we let them meddle with our spending decisions through the tax code.

Is it any wonder that we choose debt over savings? When you consider that the real price inflation rate is probably 2-3 times the nominal rate stated in government statistics, it makes no sense to save. You're forced to buy now before prices go up, especially because your wages are the last thing to rise. Said another way, saving money penalizes you. Your government has made inflation its official policy, making it impossible for you to get ahead, let alone maintain your current financial status, by saving. You are forced to chase economic bubbles just to stay even. And you do that by borrowing at low rates and investing in hot markets, just exactly as your government wants you to do. If they say otherwise, they're lying.

The borrower is slave to the lender. Encouraging more debt (by the government or individuals) will lead to more servitude. Taxes are too high, the government too big, and the lax morals of our society focus too much on the self and not others.

Rather than pay $500 in interest on credit cards each month to the banks, imagine how much good could be done by giving the same amount to charity. Savings may lose to inflation, but giving endures forever... it changes one's view of the world.

Greed and glutony got us where we are. Compassion and sharing will get us where we need to be. The government encourages and expands the former. The latter must come from one's heart.