How Bad Is It?
It is so bad, that in his first month in office, your president stated:
” I refuse to leave our children with a debt that they cannot repay. And that means taking responsibility right now, in this administration, for getting our spending under control.“
Barack Obama, February 2009
… and that is when the debt began to explode. See the chart.
The Growing National Debt
(Rounded up to nearest billion)
These numbers are so big that they are hard to comprehend, so here are a few numbers to put it in perspective:
A. At $17 trillion, each U.S. citizen’s share the debt is about $55,000.00, but it’s worse than that: Since only about half actually pay income tax, your (paying) share may be much more than that.
C. The interest paid in 2013 was about $220 billion or about 6% of all federal spending, but its worse than that — since we borrow about 31% (link) of what we spend, if we would balance our annual budget (spend only what we take in), it would be closer to 9% of spending. And, it’s even worse than that.
D. What you think is important (for government to do) will no longer matter. As the national debt grows, all the taxes you will be paying will be on the debt for money already spent, and there will be less (or no) money for education, protecting us from terrorists or helping typhoon victims.
They are spending your money, and you’ve got to stop them.
1. Spend 30 minutes on the web and see for yourself the coming debt crisis, (this page will ruin your day).
2. Do you think as a country, we can forever spend more than the revenue we take in?
3. Google this: [millennials suckers paying social security].
The Conservatives Are Your Friends
Radio talk show host and FoxNews TV personality Sean Hannity calls this overspending “generational theft.” He is talking about theft from your generation. This guy is looking out for you.
Shouldn’t you be voting for the budget hawks and those persons who will take this issue — your future — seriously? Do Something.
Other interesting facts about spending and the debt.
1. It is much worse than $17 trillion — the true level of federal debt obligations (including future promises like federal pensions) is more like $ 127 trillion.
2. Federal budgeting automaticaly increases spending for federal programs every year — it’s called “baseline budgeting.” By definition, government growth is on auto-pilot with no evaluation of need or effectiveness. When budget hawks try to stop automatic annual spending increases to programs, the big spenders call that a budget cut (though no less money is actually spent, as only the automatic increase is contained). See Mack Penny Plan
3. 45% of 2012 spending went toward paying for Social Security and health care entitlements (primarily Medicare and Medicaid), up from 25% in 2002 (cite). This is why you should insist on reforms in these areas.
4. Here is a more academic Conservative analysis of the dangers of the growing national debt.
Why not tax the rich to help bring down the deficits?
It would only put a dent in the annual deficit. For example, if you taxed 100% of all income over $1 million, that would raise only about $616 billion when we are running Trillion+ dollar deficits and that money would be never be collected because all those earners would quit investing (to earn little or nothing) or invest somewhere else with lower taxes. From liberatarian John Stossel
Haven’t the Republicans been just as bad with the over-spending?
Until Obama, the answer may very well have been yes. But, there has never been anything like the growth of the national debt since his 2009 inauguration (see chart above).
The national debt is the central issue in the current struggle between the “Establishment Republicans” and the “Tea Party” which has been called the fight for the soul of the Republican party.
The Tea Party coalesced from protests of the overspending in Obama’s first stimulus plan, and this evolved into filibusters and government shut downs in rash attempts to force Congress to deal with the debt — that’s your debt.
If you now grasp the gravity of the national debt problem, you should understand perhaps why sometimes the Tea Party folks seem to act so damn crazy.