Oftentimes people seem stupid. Government is always stupid. But when it comes to the story told by the chart above maybe the people actually understand some fundamental things about economics after all. Maybe they are smarter than they seem.
You don’t have to be smart (I’m living proof) to conclude that saving dollars that are becoming worth less every day is dumb compared to borrowing and paying the debt back later with money that is worth less than when you borrowed it. Basically everyone knows these things without even thinking about them.
So maybe the people watched as the government monetized its debt with purposeful inflation so they could pay their Social Security obligation to everyone with the money they purposely devalued? They created the money to do this out of thin air.
Perhaps the people represented in the graph just decided to play the same trick as their government? (Of course, unlike the government, they can’t just create more money to make their problem go away.)
Or does the chart show just what it looks like it shows? People can't save anymore because the economy is ruined and they can't keep up anymore. So they spend their savings and are still forced to charge their groceries and clothing. It’s a desperate situation. You do what you have to do.
Alternately, the people consume while they still have credit and worry about the debt later exactly like their government does. Hard to say.
Questions aplenty, no real answers. Just opinions and speculations from guys like me and you.
My point really has little to do with smart or dumb. It has to do with having an excuse to once again expose the government plan to wiggle out of the debt they incurred and all the promises they made. I’m pretty sure the chart never was intended to make the point I’m using it to make.
There are only a couple of ways the government can avoid the inevitable default.
The first is to just admit they can’t pay. That will never happen. Governments never admit their mistakes or reveal their actual motives.
The second is to pay people off with worthless scrip while claiming they kept their promises. That is happening right before our eyes and was always their plan.
There should be a third option. Reform the program to make it workable and honest. I listed only two options because the third one is just like the first one. One fairy tale is enough for any article. Neither will ever happen.
So are the people and the government both stupid? Yes, of course.
Both spend more than they have and pretend it will be okay. That pretense is stupid and you don’t have to be smart to realize it.