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Show Nation in Debt: Attitudes find Obligations By Sen. Wallace F. Bennett Do we need to pay off our National Na-tional Debt? Some people say we don't that so long as we continue paying Interest on It, we needn't worry about paying it off. After all, they say, we Just ow it to ourselves. This idea is gaining more and more support In Washington and throughout the country. As one of those who disagrees, I believe it is my duty to explain why I do. It's true that our national debt is owed to American citizens, who have loaned money to their government gov-ernment by buying bonds. But these citizens and all other citizens must pay the interest on that loan through taxes. And at the present time, it is costing the taxpayers more than $8 billion bil-lion per year. Suppose that we don't pay the debt off. but that we Just continue con-tinue paying interest. And suppose sup-pose further that the debt doesn't increase, but that we balance the budget from here on out. At the end of a century, we will have paid as interest on the national debt $800 billions; That is 27 times as much as all the cash now in circulation in the United States! And even then, we will still be stuck with the national debt of $280 billion, since we won't have paid off a penny of it And all this is assuming that we balance the budget every year on the average. If we don't balance bal-ance the budget (and it doesn't siem likely that we will, this side of the Millenium) then both the amount paid and the amount still owed will be much greater. It isn't a very bright picture, is it? But there is something we can do. We can make up our minds to get out from under this steadily steadi-ly growing burden of national iebt by doing two things: living within our income, and paying a little on the principal each year. The idea of paying off the principal of our national debt seems ridiculous to some people, who look at the $280 billion figure fig-ure and assume that it's impossible impos-sible to wipe it out. But it isn't impossible given enough time and the will to take the necessary neces-sary action. Suppose we decided to pay off just one per cent of our present national debt each year. That would be J18 billion per year. At that wte. it v.ould take 100 years to pay off the debt but by so doing, we would save $485 billion in interest! And after the 29th year, the payment of both principal and interest would be less that what we are now paying pay-ing on interest alone. - Of course, it may be argued that despite our economy efforts. Federal expenditures will increase, in-crease, because of increases in population and possibly greater defense costs (or because Congress Con-gress isn't willing to cut down on welfare programs). Possibly so but if we do spend more, then we should be prepared to pay the additional out of current Income, and still make payments on the principal of our national debt Some people also argue that if we are able to cut spending, all the surplus should be returned to the taxpayer in the form of tax cuts, instead of paying anything on tht debt. I believe this, too, is an Important goal. But it's going go-ing to cost the taxpayer much more in the long run if we refuse to face up to the debt. I am inclined to think that perhaps a compromise between these two courses would be best. That is, if we can come up with a surplus, let's allow half of it for tax relief, and make the other oth-er half available for payment on the national debt. Maybe all of this is wishful thinking. Maybe we Americans aren't yet willing to make the basic moral decision to pay our own way and relieve our children chil-dren of at least part of the debt they will inherit. And the makeup make-up of this Congress doesn't hold out too much promise for action in this direction. But I am convinced that sooner soon-er or later the absurdity of our present course will become apparent. ap-parent. Let's hope it will be soon. |