Where I Stand — Brian Greenspun: Pay down the U.S. debt

Sunday, Jan. 30, 2000 | 10:41 a.m.

Brian Greenspun is editor of the Las Vegas Sun.

Greenspan, Greenspun ... what's the difference?

I ran into Federal Reserve Board Chairman Alan Greenspan on the last day of the 20th century. He and his wife, Andrea Mitchell, and some 300 others were enjoying the once in a lifetime hospitality of the White House at the dawning of a new century. I was fortunate enough to be there soaking it all in.

When I knew my meeting him would be unavoidable, I tried to think of something clever to say to the man who shares in the credit for keeping America's financial house in order during this longest running economic boom we have yet experienced. Since I had more than an inkling that President Bill Clinton would renominate him for a fourth term as the chief federal banker, I knew I had to be on top of my game.

The moment came but that's all. There were no pearls of wisdom flowing from my normally fertile brain -- only a quizzical look on the chairman's face when I managed to utter, "We must be cousins," or some such nonsense. Thank goodness for Andrea who, as an admirer of my late father, carried the conversation over the chasm of unbelievability, which allowed Mr. Greenspan to respond. How he managed seven-syllable words in run-on sentences on the subject of familial relationships is beyond me. Suffice it to say that I made an impression on the man and it was not a very good one.

In the weeks that have passed I have taken solace in the fact that at least I was there to celebrate with him and, who knows, we might be cousins. I thought more about the cousin thing the other day when I listened to his confirmation hearings before the U.S. Senate and some of his words of caution about our multitrillion-dollar national debt. It dawned on me that one of my life experiences and his lifetime of experiences led us to the same conclusion about what to do with the money we owe.

Since I am the far simpler of the two cousins -- you see how I have already made the leap -- my story should be easier to understand than the string of economic verbiage he so eloquently lets fly in answer to some quite inane yet obviously fawn-like questions from both sides of the political aisle. The question about the debt, though, and his somewhat simple answer spoke a truth about which I am quite familiar and should give us pause to consider when the presidential aspirants come our way this year promising the moon.

I was a newlywed with a credit card close to 30 years ago when I entered the United States Army at Fort Knox. I had just graduated from law school, during which time I was fortunate enough to have been mostly supported by my parents. I supplemented my income by working for Sen. Howard Cannon and, I might add, doing a pretty good job of it. Back to the credit card. It was the first one I had ever had -- at age 24 -- so, like many young Americans, I hadn't a clue about the terms of such ownership. Reading the fine print was not a priority. Until ...

Until, as a first lieutenant in the Army earning $9,000 per year I had run up a credit card balance due of $5,000! That was the limit on the card, which came as a shock to me. Not why it was so low but how could any responsible company extend that kind of credit to a person earning $9,000 yearly with no other apparent ability to repay. That was my first and last lesson about credit cards.

Immediately, thanks to the clear thinking and discipline of my wife, Myra, we embarked upon a plan to pay off the card. The first thing we did was cut that plastic menace into a hundred tiny pieces. The next thing was to come up with a pay-as-we-went type of plan that included the repayment of all monies owed within two years. We were lucky, too. Within a few short months, the Army decided it didn't need me to fight a war that was winding down and the Clark County Public Defender's Office decided it wanted me at a salary increase that was quite significant. The credit card debt was soon retired and I was determined never to fall into that trap again. Then I got into the newspaper business, but that's a whole other story!

I reflected back on that mess I got myself into when I heard Chairman Greenspan talking about the prudence of repaying the $3.6 trillion national debt we owe before we start spending the expected but not certain surpluses on tax cuts and other programs. He wasn't suggesting that either tax cuts or more spending were, in themselves, a bad thing, because there is room to address those issues. What he did say was that from a priority standpoint, paying down debt while we can was a far preferable course of action.

I can recount the many reasons why I think debt retirement is a good thing but I believe my simple life experience says as much as most of us need to know. You can't plan for your future, your children's college and your retirement when the specter of repaying more money than you can reasonably expect to make hangs over your head. First things first. I can't say that our decision to get out of debt has been responsible for all the good fortune that has come my way, but I can claim with absolute certainty that getting into and out of more debt than I could comprehend taught me a lesson I have not repeated and hope never to have to in my life.

Listening to Alan Greenspan say the same thing about the need for our country to handle its debt while we can reasonably afford to do so, rings true at a time when many of the politicians would have us squander the opportunity for some short-term political benefit. In the end, it is about a proper balance and a proper priority for our economic house. Paying down the debt will make everyone's life much easier in the long run, especially the lives of our children. We got into this huge debt during our generation; it is our responsibility to get out of it before the next one gets stuck under its oppressive weight.

When Alan Greenspan talks, the whole world listens because his voice carries with it the weight of great intellect and a history of tremendous achievement. When I speak, I am lucky if my own family pays attention. In this case, both my "cousin" and I are saying the same thing, which makes what we say that much more credible.

Pay down the debt. Raise up the ability for the next generation to succeed.

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