Quote:
Originally Posted by J Man
As individuals we have no control what our gov't does and where they borrow money from. That is why as individuals we can complain out it.
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You raise an interesting point J Man.
The induvidual has little control over what his gov't does on his behalf. However you should be assurred that the gov't is borrowing on the best terms it can negotiate, also, no matter what flavour gov't is in power (or what they say to win power) the fact remains that until your gov't removes or reduces the subsidies it pays to citizens and corporations, you will continue to borrow.
For example I just returned from a holiday in New Zealand where the price of gas is not subsidised (but heavily taxed) we were paying NZD$1.99.3 per litre, OUCH! (And driving our 36 Pickup Truck). The equivalent in USD would be around $5.73.5 per gallon. How many Americans would be prepared to pay that amount for gas?
It is a political truism that should any American gov't attempt to increase the price of petrol by removal of the subsidy, that gov't will be voted out at the next election. So, by the unwillingness of the people to pay a reasonable price the gov't is required to borrow more money to support the subsidy. Of course the interest payments may eventually cost more than the subsidy thus you pay twice, once for the subsidy and once for the interest. Cheap gas? You decide.
Another interesting point made is the notion that we in western democracies are free to express our opinions and beliefs. Hence the US gov't is at the forefront of the promotion of democratic practices in other countries notably China and more recently the Middle East. (We won't mention US shenanigans in oil producing countries for the last sixty or so years where democracy was actively discouraged).
Perhaps one of the factors that will eventually change the dynamic between Chinese manufacture and western need is democracy. When the worker has rights of association and can bargain for a fair wage, his standard of living will rise, and so will the price. After China the last countries to be exploited by the west will be in Africa.
Eventually we will be having the same discussions as now, only we will be saying Sudan this and Ethiopia that. Nothing really changes...