The American Interest’s cover story focuses on the national debt. Not necessarily the over 9 trillion dollar national deficit (Go check out the National Debt Counter for live updates…it’s like New Year’s Eve, with bigger numbers and less champagne), but the individual debts that millions of Americans owe. Far too many of us live in homes, drive cars, and wear clothes that we cannot afford.

While it would be politically convenient for leftists to blame a consumer society, millions of citizens have been able to stem the tide and lead fiscally responsible lives. In The American Interest, Barbara Dafoe Whitehead divides America into two groups: the investor-class and the lottery-class. The investor class is composed the mysteriously dangerous wealthy and educated elite. They take advantage of 401k plans, tax shelters, and build large retirement plans for their own fiscal solvency. The lottery class represents those with less money and even less financial education. By buying lottery tickets, one of the most regressive government programs, their attempts at improving their situation are not just irrational, they are counterproductive. According to Whitehead, of America’s 153 million wage-earners, 70 million do not have retirement plans. As nearly half of the country’s workforce leaves their future up to scratch-offs, government hand-outs, and luck, the rest of us have to pay for it.

When FDR enacted the Social Security program, it was supposed to be a *drumroll* SOCIAL plan to promote SECURITY. It was not, and is not, called the Spend All Your Salary, Government Always Bails you Out Program, and not just because SAYS GABO is a weird acronym. The idea was to supplement Seniors so they can survive in the event that they lost their savings in an economic crash. Ah yes, losing your savings. The good news is 70 million Americans are guaranteed to not lose their retirement plans. The bad news is 70 million Americans don’t have retirement plans.

preventing Seniors from eating cat food since 1935

Social Security: Keeping seniors from eating cat food since 1935!

So how do we stop a generation where more than half of final-year college students of four or more credit cards? WE don’t because WE can’t. The best we can do is try and educate the materialistic masses. At the end of the pay cycle, debt doesn’t pay. Payday lenders stay in business charging interest rates at 400% annually because there is a market for it. Go out and tell people to actually read the terms of their loans. Have friends and family check out what the interest rate on credit cards are AFTER the low introductory rate expires. There is a market for lenders who aren’t loan sharks (think loan goldfish). We can only open and grow that market when the sharks are starved (because sharks don’t eat goldfish…or so my metaphor goes).

We have an opportunity to grow our economy, build fiscal stability, and reduce reliance on the government. We don’t need regulations, improved productivity, or new innovations. All we need is a better understanding of our own financial limitations, a little bit of moderation, and a tad of common sense. And pragmatism. Don’t forget about pragmatism.