Think Long-Term

With the unfortunate news that the House of Representatives is going to bail out the Detroit auto industry (note: notice how Toyota, Honda, Mazda, and many other companies that make cars in the US don't need a bailout), I think it's time to reflect a little bit on the national debt. Obama is talking about an even larger stimulus package, different from the over-7 billion dollars already committed to the financial industry. So, here's my claim:

Debt isn't always good. Here's Michael Kinsley's analysis of it:

But is there a downside here at all [to a larger stimulus package]? Maybe these economists (and the Economist) think the downside is obvious, but it obviously isn't obvious, or we wouldn't have run up what seemed until a few weeks ago to be the very large deficits of the past 30 years. Unless there is a downside, why stop at a trillion? Why choose between cutting taxes and spending on infrastructure? Heck, let's do both. Party on!...
The answer is yes, there is a downside. Even though amounts this large inevitably seem like toy money, it's a real trillion dollars we are talking about spending. Even if we spend the money wisely (on bridges to somewhere), we or future generations will still have to pay it off, with interest. Or, more likely, we will inflate it away, along with the life savings of those who were foolish enough to save all their lives. It's just that the downside of doing nothing is worse. It's an easy choice, I guess. But let's not pretend that it's a happy one.

Agreed. Debt isn't always good. Maybe it does have some upside, and a down economy affects us all (churches get less tithing, retailers get less shoppers, many people lose jobs). I'm certainly not a macro-economist, and so I concede that a new public works project may benefit many as today's Denver Post editorial acknowledges. Public works bring jobs and renewed infrastructure, to be sure. But I'm not so sure we're selling away our future. Where is true wisdom in this mess? I appeal to some thoughts from Proverbs.

Proverbs 3:9 (NIV)
Honor the LORD with your wealth, with the firstfruits of all your crops.

"Firstfruits" imply that money to God comes first. It isn't a luxury. It isn't a mere 10%. It's the best we have to offer and we do it first.

Proverbs 21:17
He who loves pleasure will become poor; whoever loves wine and oil will never be rich.

Watch out, America! This is a good reminder for the Christmas season.

Proverbs 22:7
The rich rule over the poor, and the borrower is servant to the lender.

Who is America going to be a servant to now? China, inflation, Mid-East oil companies?

Proverbs 11:28
Whoever trusts in his riches will fall, but the righteous will thrive like a green leaf.

This is a helpful reminder to us all.

Proverbs contains a lot of wisdom about the topic of money. It's littered throughout the book. Check it out.