More musings on this state's self implosion tendencies...
People raised here are led to believe ALL debt is of the devil, evil, destructive and should be avoided at all costs, including by the Federal government. They are brainwashed to believe this by none other than extreme Republicans and members of the Tea Party when in reality, a managed debt can be a godsend and any constitution that allows a rational debt cap is indeed beneficial to a struggling state.
Consider this; you have a credit card with a high limit so you go out and buy everything you want. You go out to eat several times a week. Before you know it, you have thousands of dollars to pay back, along with interest. You couldn't even dream of doing this on your salary alone. This is where people mess themselves up with credit.
Now this other scenario. You have a credit card with a high limit so you go out and you buy stuff you can resell at a higher price. You don't buy much at first because you know if it doesn't sell, you will be stuck with useless inventory and debt. With your keen intuition and selling ability, you manage to quickly sell all the items at a high enough price you can pay back your debt quickly, any interest (you are savvy enough to get a good rate) and have enough left over to buy some more items to sell. Before you know it, you are in business using that debt to build your own empire.
Of course there's many other ways to make money with debt, this is just one simplified option.
This is what people need to be taught, not just this blanket creed: ALL DEBT IS PURE EVIL AND DESTROYS ALL NATIONS
Not to mention states can sell bonds, something most individuals cannot do with their personal debts. This is the mistake people who balance their personal expenditure budget make - thinking the US government is the same when it's not. Even some states sell bonds.
So the key is regulation and wise spending, not just self indulgent whims and waste.
If Oklahoma had a way to create a bit of debt, the state would actually attract more business, be able to maintain it's infrastructure, and would have an easier time, generally. But nooooooo they are all brainwashed into believing debt is a horrid, horrid thing and no one sees to the majority of them having access to a high quality education, they can figure it out on their own and not be deceived. It requires thinking. They just want to take the most difficult path they can all the while priding themselves on poverty and hardship. Somehow, this makes them better than people in other states who prosper. It actually only makes people weaker.
Of course, yes, debt can destroy individuals, states and nations. The key is dedication to regulating and managing it. I would say put some people in the state government that know something about high finance, people with ethics, and let them amend the constitution a bit. That would make this place more of a power house in the grand scheme of things.
15 Jun 2014, 11:58 am
