Government

We need more interest in our interest

If politicians truly cared about you and your family as they claim, they would be addressing this issue. Instead of proposing new spending, new free programs, our members of Congress should be working on our debt.
Sen Sanders claims US is the richest country on earth and thus we should be able to pay for …
Yup, the richest country is living on its credit card just like many American families and in the process wasting billions upon billions in interest payments.
“The interest on our debt is now the fastest growing part of the federal budget, over education, defense, health care or Social Security. Interest, which is expected to hit $383 billion in 2019, will balloon to $928 billion in 2029, according to the CBO. 
Next year, interest costs will exceed the amount of all federal spending on our children. And, in 2025, our interest payments will exceed the cost of our defense budget. Before 2050, we’ll likely spend more on interest payments than any other government program or department, according to Maya MacGuineas, president of the Committee for a Responsible Federal Budget.” Source: CNN.com
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2 replies »

  1. If anybody has a good visual explanation for interest, I would like to hear it.

    I have one for taxes. Give a kid an ice cream cone after eating 1/3. The 1/3 is the government tax. A kid can see that.

    Sales taxes are not as easy for us to see directly in the US but we understand at checkout an item is going to cost a little bit more. VAT taxes in Europe are hard to see since the sticker prices already include the tax, no additional money at the register. Either way, Americans who pay with plastic do not care. The item cost what it costs.

    I believe that people think the same way on interest. My payment is how much? They look into their checking account and go OK, I have enough money. But you’ll have to pay that much again next month. No problem, I get pay next week. The never make the connection for the total amount.

    How to you visually make someone see the pile of money that they pay back for mortgage, car loans, student loans because they agree to the loan?

    Like

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