The figure 338 trillion is overwhelming. It is something beyond the human imagination. We might think of the number of gallons of water in the sea, the number of molecules in a mountain or the distance to the farthest star. The number seems far beyond the reach of any human achievement. Three hundred and thirty-eight trillion is a lot of anything.
However, the number is in the news, and we humans are definitely involved in accumulating it. However, it does not represent the number of things we have but what we don’t have.
The 338 trillion number refers to dollars we don’t have. World debt has now reached the outrageous sum of $338 trillion…and growing. The American national debt has reached $37 trillion. The service of this debt now represents trillions of dollars that are not spent on more useful projects.
It is not the case to enter into the details of the parties involved in this debt. Instead, we must examine the process by which we have reached this lamentable situation.
Debt is a reality of life. Emergencies and necessities often force a person to borrow funds. Not much can be done to avoid such eventualities. However, there are other times when people buy things beyond their means to satisfy their desires and gratify their passions. A person might buy an expensive car over time when a present or a cheaper vehicle would suffice.
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Much debt is based on a desire for instant rather than delayed gratification. Thus, debt fuels lifestyles that cannot be sustained through normal income levels. A person foregoes the discipline of saving money and exercising restraint and insists upon having the desired object now. This often leads to a vicious cycle of debt as bad spending habits develop and incite passions that can never be satisfied. The amount of debt can easily reach levels where it becomes impossible to repay, leading the person to bankruptcy and destitution.
This same process applies to nations. Governments need budgets to carry out their functions to benefit the general population. Sometimes, they create programs better suited to private organizations or charities.
Demagogues constantly try to attract voters by promising them “free” benefits and entitlements. Such governments then borrow money to pay the bill and secure the votes.
A responsible government does not spend beyond its means. Temperance on the part of officials and populations keeps things within limits. Such prudent and temperate stewardship of resources assures the best possible outcome. The numbers involved are reasonable and proportional.
However, the key problem is when the passions become unruly. People want everything now, regardless of the consequences. The vast extent of human passions knows no limits, and it is impossible to gratify them all. People develop a frenetic intemperance toward life and do crazy things. They end up working against their own interests.
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Governments and businesses also develop this frenetic intemperance, which leads them to debt levels that surpass all reasonable limits. They do not have the courage to say no, so they begin to borrow vast sums of money to keep the grand party going a little longer.
The result is a never-ending cycle of debt that knows no bounds. It soon reaches levels that can never be paid down, especially by intemperate governments.
Hence, the 338 trillion number. It represents the passions that can never be satisfied. Eventually, it must all come crashing down. The solution lies not in finance and economic theory. The problem is deep inside our fallen nature. Unless our passions are restrained, they tend to disorder, which easily leads to disaster. There is no substitute for virtue when it comes to putting things in order.
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