Thursday, June 29, 2006

public debt is private accountability

There is a truth that begs to be said in plain and simple words. This has particular relevance to the fact of the so called “Public Debt”. The common tao has all the reason to know the basic nature and immediate implications of such a debt. The knowledge is in order specially so when the said debt is continuously building up during the tenure of the present administration.

In so many words, “Public Debt” simply means the following: One, the government perceives the need of money to finance its conceived projects. Two, the government borrows not only from local sources but also from foreign lending agencies. Three, the government guarantees the payment of all its borrowings, capital plus interest.

However, the ultimate implication of any and all “Public Debts” is that the general public must pay them. The government borrows but it is the general public that pays. The more “Public Debts” are incurred by the government, the more payments have to be made by the citizens. How convenient! The government has all fun borrowing while the people have all the suffering by paying. That is why when the government keeps on borrowing, it only means that the people have to continue paying. No more. No less.

When the government proudly announces that it has a good or high “credit rating”, this means that it has acquired the license to borrow more and consequently imposed more taxes on every citizen.

No wonder then that while those capable are obliged to pay direct taxes, everybody else, even beggars have to pay indirect taxes from birth to death every time they buy consumer goods, use electricity, consume gas, drink water. In fact, in this country, before a baby is even born, it is already destined to pay a multi-million public debt.

When the present government claims that it incurs big public debts in order to promote more the public good, this allegation is to be taken with a big grain of salt. The fact eloquently belies the claim—all government contrary argument to the contrary notwithstanding.

29 June 2005