Activities
1. Analyzing an Opinion on National Debt
Henry George, in his book Social Problems, wrote the following about public debts, decades before they became a widely-debated in economic policy:
When we talk about calling upon future generations to do their part in the costs and burdens of the present, imposing upon them a share in expenditures we take the liberty of assuming they will consider to have been made for their benefit as well as for ours, we are carrying a metaphor into absurdity. Public debts are not a device for borrowing from the future, for compelling those yet to be to bear a share in the expenses which a present generation may choose to incur. That is, of course, a physical impossibility. They are merely a device for obtaining control of wealth in the present by promising that a certain distribution of wealth in the future shall be made-a device by which the owners of existing wealth are induced to give it up under promise, not merely that other people shall be taxed to pay them, but that other people's children shall be taxed of their children.... Those who get control of governments are thus enabled to get sums which they could not get by immediate taxation without arousing the indignation and resistance of those who could make the most effective resistance.
After reading the selection, please answer the following questions:
- What does George mean about the impossibility of borrowing from the future?
- Why is the author against public debt?
- What are the reasons that people, banks or corporations lend the government money?
- Why, according to the author, do governments not raise taxation instead of going into debt?
- Evaluate the arguments that have been given in this selection.
- Does this present generation have a right to cause future generations to pay off the debt?
- What are some of the arguments that can be given for a national debt?
2. Comparing radio with TV and the Internet
Having a radio was very important to families in the 1930s. It brought the "Fireside Chats" of President Roosevelt to millions, and it gave people a chance to escape the harsh realities of the depression. Because voices, music and sound effects took place of the visual, radio gave listeners an opportunity to use their imaginations. Many radio broadcasts of the 30s and 40s can be found in libraries. Have each student listen to one of them. There is a wealth of different programs to choose from, such as Jack Benny, Fred Allen, Jack Armstrong, Dick Tracy, Suspense -- or any of a number of daytime soap operas. All provide a window on the daily life of the era -- and the ads can be as interesting as the shows.
Students should compare the radio of yesteryear to today's TV, and the Internet. There should be little trouble starting a spirited discussion on the differences and what they reveal about society then and now. Here are a few points to consider:
- Do people generally experience this medium in groups, or by themselves?
- Which medium offers the greatest variety?
- Which seems the most effective place for advertisers to sell their products?
- Which medium offers the most reliable source of news and information?
- How does the opportunity of Internet users to interact with each other make it differ from the other media?
3. Reading Line Graphs on the National Debt
| The two line graphs at right detail the national debt from the beginning of the century to 1980. Graph A shows the national debt in billions of dollars. Graph B shows national debt as a percentage of Gross National Product (GNP) -- the total annual output of goods and services in the U.S. economy.
After studying these graphs, please answer the following questions:
- What factors accounted for the steep incline during the 40s?
- Extend the line on Graph A graph for the period after 1980.
- What other information do you think is necessary in order to better evaluate our getting deeper into debt?
- During the 1930s, deficit spending was the order of the day. Could the programs of the New Deal have been accomplished without going into debt? Explain.
- During the 1950s, our nation steadily lowered its federal debt. Do you expect the same thing to hap- pen with the current large debt? Why or why not?
- What can you infer from the two graphs about the level of inflation in the 20th century?
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4. Making Judgments about Debt
Below are parallel questions on a) personal debt and b) national debt. Answer each question in a sentence or paragraph.
Personal
- What results from your going into debt?
- Is going into debt helpful or harmful?
- How does it affect the way you relate to others?
- Are you for or against going into debt?
- What are some ways in which debt is encouraged in our society?
National
- What are the consequences for the nation of going into debt?
- Is going into debt helpful or harmful?
- How does national debt affect our country's values and actions?
- Are you for or against national debt?
- Which groups in society benefit from national debt? Which groups benefit from national debt? Which are hurt by it?
After you have expressed your judgments, compare your attitudes on personal debt with your attitudes on national debt.
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