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01/04/2007: "More thoughts on debt reduction"
Following up my own post involving debt reduction, I've had another thought to add. Well, actually I've had several more thoughts, this is just the only one I've remembered to write down so far.
In his letter, Alex Thumm said:
Parents don't cut piano lessons or quality of food for their children so they can pay off their line of credit.
This too shows a significant difference between how debt impacts individuals and how it impacts governed citizens. As a result of dealing with some financial issues with a parent, we have determined that debt dies with the estate. That is, if you screw up bad enough so that you die with more debt outstanding than assets, at least your inheritors don't have to pay for your excesses. On the other hand government lives as long as its collective citizenship does, which will leave our children to pay for the excesses of our government.
Updated: My sincere apologies to Alex Thumm. I have no idea where I got the idea (ahem) that he was a she. Mea culpa!