United States of Addiction

A one track mind
You can't be saved
Oblivion is all you crave
If there's some left for you
You don't mind if you do
--Robert Palmer

Addictions are habits that are extremely difficult to break. Addictions are pathological, meaning that they are disease-like. They generate negative, perhaps even life-threatening, consequences.

A perverse characteristic of addiction is the continued involvement with addictive substances or behavior despite the negative consequences. Moreover, dependence on addictive substances or behavior escalates with use, which correspondingly drives an upward spiral in consumption in order to achieve satisfaction.

It is often said that the United States is acutely addicted to spending and debt. But the fundamental addiction is consumption--our seemingly insatiable demand for living ever larger in the present.

We are consuming economic resources at a rate far in excess of what our incomes permit. Thus, the only way we can fund our consumption addiction is thru borrowing those economic resources from willing lenders.

At the national level, public debt is in the process of crossing the $14 trillion mark--which makes it roughly equal to US GDP and growing at a rate much faster than GDP.

In comical fashion, Congress periodically specifies a 'debt ceiling' beyond which we can't legally borrow. I don't know how many times we've established that ceiling in the past, but I do know that we've never been able to respect the limit. When we reach the ceiling, Congress merely votes to raise it.

We're approaching the national debt ceiling, currently ~$14.3 trillion, once again. Predictably, many in Washington are once again chanting that not raising the debt ceiling would be 'catastrophic' for the country.

If you're an addict, of course, then failure to score another fix is about as catastrophic as it gets...

There are those who suggest that we score another fix while developing a plan that will get us off the junk over time. But voluntary behavior changes rarely cure addiction since addicts lack discretionary discipline. Far more likely is that addiction ends when access to facilitating resources ceases.

For the US, the likely scenario is that the debt ceiling continues to be raised until creditors cut us off. If/when this occurs, then our addiction must be dealt with in 'cold turkey' style. The withdrawal symptoms could be fatal.

A far less likely scenario is that the incoming class of congresspeople, and the voters that put them there, exert enough influence to hold the debt ceiling at bay. Substantive plans could then be made cut spending and consumption so that we can be weaned off the addiction at a pace that, while unpleasant, would be less life threatening.

One way or another, however, laws of nature bring addictions to an end.