What's a trillion look like?
See it here.
Now the government wants to move the debt ceiling past $14 Trillion? I think we have a problem....
Showing posts with label national debt. Show all posts
Showing posts with label national debt. Show all posts
Thursday, January 6, 2011
Saturday, November 27, 2010
Sacrifices
I found this story about Alan Simpson to be very interesting. In it, he calls out Seniors for being greedy. I don't think it is just seniors that are being greedy, but everyone that has their hand in the government cookie jar. That includes State Governments, Unions (public sector and private sector), Green Energy, Big Agriculture, Small Agriculture, Defense, Health Care, and many many more.
So what is it going to take in the way of sacrifices for the US to find its fiscal way? I'm not entirely sure. However, I am willing to make sacrifice as I undoubtedly benefit from many government programs (defense, transportation, education, etc.). To be fair (whatever that means) I am willing to make sacrifices if the government is willing to makes changes. If the government would adopt the changes being recommended by the National Commission on Fiscal Responsibility and Reform, I am willing to give up what they recommend and maybe a little more.
The sacrifices that I am willing concede include raising the age in which I can collect social security to 69, dropping the mortgage interest reduction, and cutting the child credit. In fact, I am willing to forgo my entire social security check if the government would stop collecting the piece of Social Security Tax they collect directly from me. They can keep what they have already collected (over $190K) and they can continue to draw the piece my employer pays on my behalf (which is part of my total compensation by the way).
I give the chances of the NCFRR recommendations being implemented at close to 0%. Why? Because special interests will not make sacrifices. The government has created this cruel dependency over the last 100 years and people won't, and in some cases can't, go into rehab to get over this addiction. This addiction is powerful as the demonstrations in Greece, Ireland, Britain and France clearly indicate. There will be lies and misinformation, scare tactics and intimidation every time someone's handout is eliminated.
Politicians have neither the will or desire to stand up and do what is right to save this country. They only have the incentive to get re-elected, not do the prudent fiscal tasks to improve our situation. Term limits will help, but the political incentive system is unfortunately the down side of democracy. When more than 50% of eligible voters have the incentive to keep the gravy train running, there is not much that can be done to save the Republic.
It is all rather depressing, and hopefully I am wrong and the American people will awake from their funk.
So what is it going to take in the way of sacrifices for the US to find its fiscal way? I'm not entirely sure. However, I am willing to make sacrifice as I undoubtedly benefit from many government programs (defense, transportation, education, etc.). To be fair (whatever that means) I am willing to make sacrifices if the government is willing to makes changes. If the government would adopt the changes being recommended by the National Commission on Fiscal Responsibility and Reform, I am willing to give up what they recommend and maybe a little more.
The sacrifices that I am willing concede include raising the age in which I can collect social security to 69, dropping the mortgage interest reduction, and cutting the child credit. In fact, I am willing to forgo my entire social security check if the government would stop collecting the piece of Social Security Tax they collect directly from me. They can keep what they have already collected (over $190K) and they can continue to draw the piece my employer pays on my behalf (which is part of my total compensation by the way).
I give the chances of the NCFRR recommendations being implemented at close to 0%. Why? Because special interests will not make sacrifices. The government has created this cruel dependency over the last 100 years and people won't, and in some cases can't, go into rehab to get over this addiction. This addiction is powerful as the demonstrations in Greece, Ireland, Britain and France clearly indicate. There will be lies and misinformation, scare tactics and intimidation every time someone's handout is eliminated.
Politicians have neither the will or desire to stand up and do what is right to save this country. They only have the incentive to get re-elected, not do the prudent fiscal tasks to improve our situation. Term limits will help, but the political incentive system is unfortunately the down side of democracy. When more than 50% of eligible voters have the incentive to keep the gravy train running, there is not much that can be done to save the Republic.
It is all rather depressing, and hopefully I am wrong and the American people will awake from their funk.
Tuesday, July 8, 2008
When The Bills Come Due
There is a good editorial today in the NYT about New Jersey's struggle to pay off the $32B debt that reckless prior governors and legislators ran up in order to appease voters. Ultimately, the challenge is now one where the debt has grown so large that interest payments are becoming a problem to pay. In fact, the State of New Jersey now has to come up with over $2B annually to cover interest alone.
Fortunately Gov. Corzine has said enough is enough. He actually pushed a budget that is less this year than last year. Not a decrease in growth (as is normally a politician's way of saying he cut spending), but a real decrease in money for 2009 vs. 2008. The Governor's good work is going to produce a $650M windfall to pay down the debt. This sounds great, but it only reduces the cost of debt by $130M (interest). At this rate, New Jersey will never get out of debt.
This is certainly a lesson for other government entities, including the Federal Government. Eventually you take on so much debt that the debt service cost becomes very hard to pay. New Jersey has reached this point and the Feds are getting closer to this same point every year. In 2007, the Feds spent $430B on interest on the national debt. This was the third largest budget item in 2007.
In 2008, the national debt will exceed $10T! This is not what is promised in future benefits (that number is closer to $60T), but the actual federal debt, money that has already been borrowed. This figure represents over $33,000 in debt for every citizen in the country. For a family of four it is a debt over $133,000. Most families do not even have a mortgage this large, but they are being force to cover the interest expense on this debt.
It is time to get this spending under control before we mortgage the future of our children and put the Federal Government in the same position as New Jersey. Vote for fiscal restraint and smaller government and save our children's future.
Fortunately Gov. Corzine has said enough is enough. He actually pushed a budget that is less this year than last year. Not a decrease in growth (as is normally a politician's way of saying he cut spending), but a real decrease in money for 2009 vs. 2008. The Governor's good work is going to produce a $650M windfall to pay down the debt. This sounds great, but it only reduces the cost of debt by $130M (interest). At this rate, New Jersey will never get out of debt.
This is certainly a lesson for other government entities, including the Federal Government. Eventually you take on so much debt that the debt service cost becomes very hard to pay. New Jersey has reached this point and the Feds are getting closer to this same point every year. In 2007, the Feds spent $430B on interest on the national debt. This was the third largest budget item in 2007.
In 2008, the national debt will exceed $10T! This is not what is promised in future benefits (that number is closer to $60T), but the actual federal debt, money that has already been borrowed. This figure represents over $33,000 in debt for every citizen in the country. For a family of four it is a debt over $133,000. Most families do not even have a mortgage this large, but they are being force to cover the interest expense on this debt.
It is time to get this spending under control before we mortgage the future of our children and put the Federal Government in the same position as New Jersey. Vote for fiscal restraint and smaller government and save our children's future.
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