Moving South Financially And Drowning In 16 Trillion Dollar Debt
One has to believe in tooth fairies. At least this administration must believe we do. A tooth fairy that is going to sweep in and take care of our 16 trillion-dollar debt. No questions, no worries, no problems.
To even think that what they are telling us has any remote possibility of sounding coherent. The President said that over the next 10 years the debt is in a sustainable place, and echoed by many Democrats pointing to the CBO projections. But the numbers don’t add up.
While they take their victory lap they leave out much of the rest of the CBO projection. Such as the money the federal government owes to domestic and foreign investors is 90% higher than in 2008. As of July 2013, we are swimming in 16 trillion dollar debt.
Now think about what things will be like by 2023 when the public debt will grow to 19 trillion, which will be a 36% increase since 2007. So what does this actually mean numerically? Today we spend about 223 billion in interest and on programs such as Social Security, Medicare and Medicaid. In 2023 the payment will be 823 billion. That is an increase of 600 billion dollars. Trying to process this boggles the mind.
“CBO’s new long-term budget outlook again highlights the urgency of reaching agreement on a bipartisan and comprehensive long-term deficit and debt reduction plan,” Senate Budget Chairman Kent Conrad, D-N.D., said in a statement. “We must address the projected explosion in federal debt. If we fail to act, it will have devastating consequences for our economy and for the future well-being of the American people.”
Now it doesn’t take much of a math wizard to see that we are going in the wrong direction. We’re heading straight toward financial collapse. At this point, it’s unavoidable. The simple truth is there are only two ways to sustain the course we are presently on. One way is to raise taxes and cut benefits. The other way is to change the tax code to a sales tax for individuals and business, and open the country up to energy and manufacturing. Which seems the most reasonable, logical solution?
This is the stark reality of the facts with no ifs, ands or buts about it. Today a person’s discretionary income on average is only 39%. That means that 61% of the money you make is going to government, and by 2023 that figure could be as high as 70%. There are many that may call this crazy but I am thinking that the numbers are reversed.
We should be bringing home the 70% and let the bureaucrats wither on the vine. And having said that the cry of the liberals will be that we want to throw the middle class off the cliff. And we say to them that the middle class can do more with a 30% pay increase than they can with the same empty promises of the liberal tooth fairies. Because the tooth fairy can’t pay up.by