My Opinion

Over the edge in debt … and yet we want more and more

Your politicians are misleading and deceiving you, and giving you a false sense of security. And they do that in large part because you don’t want to hear the truth.

Look anywhere on Facebook or other social media and in the press and you will see politically motivated opposition to changing any entitlement. Even slowing the future growth in spending is described as a cut.  We just want  more. 

Look at the data below. As bad as it is, it gets worse each day … and nobody seems to care. 

Shall we do nothing to control spending? Shall we merely pass this burden to our children and grandchildren? What the hell is wrong with us always asking for more and not wanting to pay for it? Instead we always want someone else to pay and the political left accommodates and promotes that notion with its fair share rhetoric and creating the notion that wealth is bad or that somehow another persons good fortune and hard work have taken something from you.

The fiscal mess you see below is based on current law. At the same time you have the likes of Sen Sanders calling for more of everything; free health care and college and to make Social Security solvent at the expense of a few Americans.

Here is the truth about one item in the budget, a fact no politician talks about:

To illustrate the magnitude of the 75-year actuarial deficit, consider that for the combined OASI and DI Trust Funds to remain fully solvent throughout the 75-year projection period: (1) revenues would have to increase by an amount equivalent to an immediate and permanent payroll tax rate increase of 2.58 percentage points to 14.98 percent, (2) scheduled benefits would have to be reduced by an amount equivalent to an immediate and permanent reduction of about 16 percent applied to all current and future beneficiaries, or about 19 percent if the reductions were applied only to those who become initially eligible for benefits in 2016 or later; or (3) some combination of these approaches would have to be adopted. Source: Trustee Report


But even more important…

The United States recorded a government debt equivalent to 106.10 percent of the country’s Gross Domestic Product in 2016. Government Debt to GDP in the United States averaged 61.14 percent from 1940 until 2016, reaching an all time high of 118.90 percent in 1946 and a record low of 31.70 percent in 1981.

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2 replies »

  1. Everybody wants more stuff from the “Gubmint”

    Debt doesn’t matter until it does.Don’t believe me? Ask somebody from Greece or Venezuela.

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  2. It is not all the politicians fault. It is us. 1) for re-elect them and 2) wanting more on credit.

    In New Jersey, on my ballot there is a public question to raise $125 million in bonds for libraries. Yes, this is a noble cause but is it the right way to pay for it? New Jersey’s credit rating has been cut 11 times under Christie. NJ just raised the gas tax 23 cents because the transportation trust fund went broke. Since there is no extra money in the state budget, our legislators did not want to take the blame for the library bond issue so they put it on the ballot and they do this often will bond issues. This new bond will probably pass and another $125 million plus interest will be added to New Jersey’s debt. The politician can blame the taxpayers for wanting to raise the debt because of the “library bonds”.

    What people do not realize is each town can already have a library tax at 1/3 mill. since 1884. In 2010 it was supposed to be broken out on your property tax bills for transparency but both my town and county library is not separate on my tax bills. Since people may not realize that they are already paying for the libraries, I am sure that this will pass.

    Now do this at the federal level and that is how all the pork gets added to budget and the debt. “We the people” want and the politicians and are going to buy our votes to keep us happy. Want more Social Security or a new bridge to nowhere, no problem. “We the people” love our credit cards so it is only natural that Congress loves debt. We do not worry about how much debt until we cannot retire. One day, the day of reckoning will come for the country’s debt too.

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