On Sunday, September 26, 2010, Germany paid the final payment of £59.5 million (US $94,206,350), settling reparations levied by the Treaty of Versailles in 1919 to the assist the war-ravaged nations of Belgium and France, as well as reimbursing the Allies for some of the costs of waging World War I.
According to Telegraph.co.uk (http://www.telegraph.co.uk/), the reparations paid “the price for one world war and laid the foundations for another… when Germany was forced to pay… compensation for what was then the bloodiest conflict in history, leaving nearly ten million soldiers dead.” Germany’s economy was crippled by the staggering debt, resulting in resentment and a nationalist sentiment which helped propel the Nazis to power. As Chancellor of Germany, Adolf Hitler reneged on reparations, setting in motion one of the many domino decisions leading to World War II.
Thinking about 92 years of reparation payments boggles the mind, given the subsequent events of the 20th Century: the Great Depression, World War II, the Korean War and Viet Nam Conflict; the Civil Rights Movement; the Space Race/man walking on the moon/both Shuttle disasters; the Cold War and fall of the Berlin Wall; 9/11 and the Gulf and Iraqi Wars; globalization; the Internet (Twitter and Facebook); the housing/credit economic meltdowns and continuing recession.
That’s quite a lineup, considering how much progress civilization has made while Germany quietly chipped away at its debt. Progress cost money, and boy-oh-boy have we spent some money… From surpluses to mountains of debt—and that’s just in the last ten years. A quick look today (10/1/10) at the National Debt Clock (http://usdebtclock.org/) shows a tally of $13.5 trillion and counting, assigning $43,600 per citizen and $121,645 per taxpayer.
Recently, I listened to a young man (28 yrs old) speak regarding community economic development. Towards the end of the presentation as the answers became an intriguing mix of his professional and personal perspective, he touched on the touchy subject of social security, saying neither he nor his generation would ever benefit. He continued, saying that he and his voting peers would not continue to fund the excesses currently in place.
Looking around the room, I realized that the makeup included approximately 50% “Boomers I or Baby-boomers (born 1946-1954/coming of age 1963-1972), and Boomers II or Generation Jones (born 1955-1964/coming of age 1973-1983) with both groups concerned with job status, work ethic, and social standing; 33% Gen X (born 1965-1979) who often had both parents working, were exposed to daycare and divorce, and were known as ‘latchkey kids’; and 17% Gen Y (Millennium or Net Generation [born 1980-1995]) who are very technology wise and comfortable with ethnically diverse groups.” 1
I agreed with and echoed his sentiment that most of us wouldn’t benefit from having paid into the Social Security system; however, I had a deer-in-the-headlights moment realizing that I am in the group he has no intention of financing in my golden years. Then I wondered who was going to be paying for his parents (possibly Boomer II or Gen X). It occurred to me that we might be booking passage on the same ice flow together… 2
He has a point. Who is going to pay for the excesses, not just of Social Security, but the litany of programs, projects, and wars we’ve rung up on credit?
As a Boomer II, I’m planning on working for a long, long time─ doing my share and covering my costs. Of course my continued presence in the workforce potentially hinders a Gen X, Y, or Z’s (Gen Z [born 1995-20XX.] “They are not yet adults and have never known a life without the internet, computers and mobile phones.”)1 opportunity for advancement.
Oh my, as a long-term and continuing taxpayer, I’m an obstacle and liability, but necessity within the system. It makes me glad I haven’t had a child, effectively “replacing myself” on this earth, while saddling him/her with debt, resentment, and uncertainty.
Revisiting the origin of this musing, John Maynard Keynes (Keynesian economics), principal representative of the British Treasury at the Treaty of Versailles/Paris Peace Conference, resigned in protest of the magnitude of the reparations, protesting, “Germany will not be able to formulate correct policy if it cannot finance itself.” It took 92 years to pay off $94 million. I’m not even going to do the math on $13.5 trillion…
I hope there are some smart thinkers out there. After they join me on the ice flow, the substantial fortunes that Bill Gates and Warren Buffet have signed over for the betterment of the future will come into play. Maybe it’ll be enough to pay off the debt, wipe the slate clean, and start anew.
1 Jackson, Jo. Veterans, Baby Boomers, Gen X, Gen Y and Gen Z: Understanding the Different Generations and Their Characteristics. Suite 101.com. Jan 4 2010. Viewed Oct 1 2010 < http://www.suite101.com/content/veterans-baby-boomers-gen-x-gen-y-and-gen-z-a185353>
2 (http://www.straightdope.com/columns/read/2160/did-eskimos-put-their-elderly-on-ice-floes-to-die)
