It is so hard to tell if the economy is really slipping or if it is just the media telling us the economy is slipping. What I really think the problem is – debt. Personal debt in this country is staggering. It reached $2.46 trillion in June 2007 (and this does NOT include mortgage debt). We like to spend more than we make. Instead of cutting down on purchases using Amazon and Lillian Vernon coupons when we can, we tend to “put it on credit.” Unfortunately, we don’t realize that we eventually have to pay this credit off.

Fifteen percent of Americans carry over $10,000 of debt on their credit cards and the average family has 5% of their income in debt.

We see this carry over to the government as well. Here in New Jersey we are in a budget crises. We are over 38 million in debt and the solution? Raise taxes. An average consumer, when in debt, does not get the benefit of taxing his neighbors to bring in more cash. Instead he must cut spending. And that is exactly what government must do now. Instead of spending and taxing, but big government.