Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, March 28, 1993 TAG: 9303290421
SECTION: EDITORIAL PAGE: B-2 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Short
Let's examine whether our federal government should default on our national debt (or maintain its present course and hope for an eventual self-termination). I'm suggesting something similar to a Chapter 11 bankruptcy - only on a much grander scale.
If our economic infrastructure didn't collapse, who would be worse off? After the initial shock, we might possibly become a more viable economic power, without that huge debt dragging us down. Could it help stem the tide of outflowing tax dollars or perhaps lessen the influence of special-interest groups? We could all make do with less pork in our diets! How many financial institutions would collapse vs. the number that have failed to date? What has the taxpayer got to lose? We already have been shafted by the savings-and-loan debacle.
If we can cancel foreign debts owed to us, then why can't some or all of our foreign debt be forgiven? After all, didn't Brazil do something akin to this a few years back? And isn't that country still vibrant, alive and kicking, with their economic community intact?
And what of our domestic debt? What to do to curtail the shortfall and reduce net losses to the good folk who help finance it? One possible solution is to devise a plan whereby the aggrieved parties could achieve near-parity by having their tax burden reduced or cancelled (in lieu of quarterly or annual tax payments) until each instrument of debt is finally satisfied. ARNOLD D. ST.CLAIR HARDY
by CNB