Debt Reduction Lawsuit

President George W. Bush got sued the other day (March 22, 2006, to be precise). He’s not too worried about it. A group called Public Citizen now has two lawsuits against the President for passing the Deficit Reduction Act of 2005. Apparently, there were a couple of typos on the bill Bush signed into law, so technically; he passed a different Act than the one approved of by Congress.

This debt reduction lawsuit seems, at first glance, to be about a group of people who really need part time jobs. But the national debt reduction lawsuits are trying to point out some flaws in the Deficit Reduction Act, which only squeaked by Congress.

The Deficit Reduction Act & You

The national debt or deficit is what the American government owes to the banks and governments of other countries. These banks are no fools – they charge interest rates that would make your credit card company jealous. The current National Debt, according to the web site “U.S. National Debt Clock”, is — wait for it —

$8,832,546,056.49

Well, give or take a few million. Anyway, the Deficit Reduction Act seeks to cut this figure – by raising interest rates on student loans and raising the cost of Medicaid, among other places. The debt reduction lawsuits have come to nothing, and the Act is law. If you are on Medicaid or have a kid in college, you’ve been feeling the pain.

If America Can Get Away With The Debt, Why Can’t I?

The whole reason I’ve pointed out this rather bizarre episode in American legal history is that it mirrors the persona debt problems of the average American. They see the government getting away with trillions of dollars in debt and wonder why they’re getting hassled over the payments on a recliner. Unfortunately, a recliner can be repossessed. The entire country of America cannot. Many never think about personal debt reduction. Lawsuits can be threatened, but lawsuits rarely ever come to court.

Debt reduction, lawsuit-inspired or not, is a personal issue that should be a priority with individual Americans. Not being in debt is a very self-empowering experience. Don’t look to the government to ever get out of debt, for the government has no priority to get out of debt. But you have a priority to make yourself the best person you can be. Dealing with debt reduction, lawsuits, or any other financial matter can help you take control of your life. If you learn to reduce your personal debt and manage your money, you can learn how to change other habits in your life.
Then, you could teach the government a thing or two.