What are the consequences?
In an attempt to push the economy ahead short term, Congress has extended and enhanced the home buyer’s tax credit. $10.5 billion was spent in ’09 on the tax credit and no doubt at least that much will be spent on the new round pushing our national debt even higher. As we found out in the late ’70s and early ’80s, massive debt will mean much higher interest rates.
Are we willing to accept those higher rates to make things a little better in the short term or should we be taking a stand and saying no more? The consequences are all about the choices we make. Where do you stand?