Spending more than earning, is at the root of much of the problems that plague personal, national and international economies. Credit is the facility that permits the expenditure above income. One is permitted, in varying degrees, to spend above income to the extent of one's creditworthiness. It is an empirical fact that the deeper one descends into debt, the more expensive new credit becomes and the less capable the debtor becomes of extricating himself from the debt trap. Servicing the debt then begins to impact negatively on current living standard because of the large portion of current income that must be utilised to service debt, making less resources available to function normally. So while credit has its very useful function, if there are no restraints credit can be abused and its addictive qualities lead to bankruptcy and ruination.

Servicing the debts

The evidence is very clear that, as a nation, we have overused the privilege of credit and the burden of servicing the debts of the past makes current income/taxes inadequate to service our debts and, at the same time, function normally. Sadly, the only restraint we seem to observe is non-availability. There is no silver bullet, magic wand or political messiah that can bring a miraculous transformation of our economic situation. The truth is, we cannot wish it away, tax it away or borrow it away. We have to produce/earn our way out. Not before we as a nation come to appreciate the importance of justice, austerity, prudence in strategic prioritising and thrift, will we end our addiction to overspending and start on the road to economic liberation.

I am, etc.,

Lucius C. White

Kingston