How does national debt affect you as an average person? Lets take the time to understand it, as I believe it is a fundamental question that need to be understood. It is fascinating for me to encounter many people, that are well aware of this issue, take it as an abstract fact and chose to ignore its practical consequences. National debts are one of the main reason for the lack of income, stability and prosperity on a social and personal scale. To understand why we will need to address the topic straight forward. The only way a government can get the funds needed to pay its debt is by collecting taxes. The logic behind taxes is quite simple, More taxes exist less money is left for its citizens. Lets put on the table some practical examples:

• The increase in income tax have a direct affect on how much an individual is actually earning for his work. (more taxes= less income)
• Increase of income taxes diminish the amount of employees small and medium businesses can employ. (more taxes= more unemployment)
• The increase of sales tax affect directly the price of the commodities we buy on a daily basic, affecting the prices of all the products on the market. (more sales tax= less food in the supermarket basket for the same price).
• The increase in sales tax increase the cost of basic services. (more sales tax= the price of gas, water and electricity are higher).
• The increase in import tax, increase the price of products imported to local market. (in this case increasing sales tax and import tax is doubling the increase in the price).

Before we continue this conversation,  it is important for me to clarify an important point. The conclusion of this post is not that taxes should not exist. They are a necessity to maintain an healthy communal and public system. The problem is the amount of taxes that are taken and what they are used for. At this point another conclusion can be logically understood – more  tax money is used for paying this national debt, less budget exist for health, education and public services. This services are the core institutions that maintain a prosper society and gives roots the a better future.

The absurdity in all of this is that instead of stopping this cycle of misery, governments are continually rising taxes, making the people poorer, decreasing the state of local education, health services and pensions without even having a solution in mind. In the way I see it, it is like we are all riding a manual train that requires all of us to work hard for gaining speed. We all know the train is going straight forward into a wall, but we continue to work harder and increasing its speed. All this time explaining ourselves that since we never saw the wall maybe in the end it doesn’t really exist.

The conclusion is very simple.

• This national debt issue is one of the biggest burden on the majority of the western countries.
• The majority of the western country in the world do not have the capacity to pay back this debt.
• These countries are  ignoring this situation, by finding momentary solution in the form of increasing taxes.
• These taxes are one of the biggest burden on normal citizens, as it makes them work more, earn less and spending more on less products.
• These burden is blocking any path to prosperity of the individual in their lives and their society as a whole.

Hopefully, part of you start to understand why the subject of national debt is so relevant, urgent as important to handle with. Understanding is the first step toward finding a solution. In my next post we will discuss, why governments are comfortable with leaving this dangerous status quo and what can we (as citizens) can do to start fixing this problem. 

Share you thought with me in comment and express your opinion. Awareness and open conversation are the key for the creation of a better future.

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The post National debts, the real problem of the average person. Part 2 – How does it affect me? appeared first on Back to Ourselves.