Prudence
I wrote the following “letter to the editor” on Feb 17, 2009 Prudence vs. Imprudence A prudent man with income sufficient to service debt will barrow the last of his credit line in order to invest in assets that he expects will increase production and foster more income. That income will allow him to improve infrastructure, repay the loan and generate a profit. In the end his condition is improved, the debt is repaid and his credit is restored. A imprudent man with income sufficient to service debt will barrow the last of his credit line and spend it on intangible or depleting assets (a new car, expensive vacation). While his income is sufficient to service the debt, the depleted condition of his infrastructure requires a capital investment. Credit exhausted, the infrastructure decays. Our Nation is currently engaged in an experiment. We are a debtor nation. Once we barrowed money from our citizens to fund government expenditures which taxes could not cover. In recent y...