Deficit’s future unsure

By BETH LUCAS
Collegian Staff Writer

The national budget deficit for last year was just reported as the lowest it has been during Clinton's administration, but the national debt continues to grow and may affect college students' retirements.

The deficit was $29 billion and the debt grew to about $5.6 trillion, according to The Concord Coalition, which educates college students about the national debt.

One concern students may have with the debt is how it will affect Social Security, a program originated when there were many more workers than there were retired people.

"This is really (college students') problem," Jeff Thiebert, youth and college outreach coordinator for the coalition, said. "They're the ones who are going to have to front the bill for Social Security."

This can cause stress because students want a good standard of living for themselves but also want to see their parents and grandparents taken care of by Social Security, he said.

By the time an incoming college freshman turns 35, more than half of the baby boom generation will have reached the legal retirement age of 65, he added.

"By they year 2032, there will be no Social Security money left, so we will have to start paying for all 76 million retired people," he said.

If Social Security funds run out, one option would be to borrow money from the government, a move causing an increase the national debt.

But economics instructor Paul Graf does not see the debt as a major concern, despite its size and increases.

"If the debt is owned by the U.S. and its people, it is one big transfer payment," he said.

The money is transferred to different parts of the U.S. government and private citizens.

"It is no problem if we owe it to ourselves," Graf said. However, 23 percent of the debt is owed to foreign investors who also earn interest from it, and this can be harmful to the economy, especially during a recession, he said.

Many students, however, do not hear much about the national debt, Hannatu Abbas (sophomore-division of undergraduate studies) said.

Education and communication are the only answers to student apathy, Thiebert said. The coalition asks students to concentrate on planning for their own retirements and educating themselves about what the national debt is.

John Stefens (sophomore-communications) is not concerned because he does not feel the national debt is unusual for a large nation.

"For the U.S., $1 million is a drop in the bucket," he said.

The current debt grows an average of $368 million every day, a phenomenon which can be viewed on Stanford University's National Debt World Wide Web site (rescomp.stanford.edu/~raistlin/debt.html). The debt may increase to $9 trillion by the time college students retire, Thiebert said.