The Cost of America’s Debt
47% of Americans Pay no Federal Taxes and that number is rising according to CNNMoney.com
“In 2009, roughly 47% of households, or 71 million, will not owe any federal income tax, according to estimates by the nonpartisan Tax Policy Center.
Some in that group will even get additional money from the government because they qualify for refundable tax breaks.
The ranks of those whose major federal tax burdens net out at zero -- or less -- is on the rise. The center's original 2009 estimate was 38%. That was before enactment in February of the $787 billion economic recovery package, which included a host of new or expanded tax breaks.”
The Outstanding Public Debt as of 12 Apr 2010 at is:
The estimated population of the United States is 308,181,602
so each citizen's share of this debt is $41,670.19.
The National Debt has continued to increase an average of
$4.14 billion per day since September 28, 2007!
That’s just the debt. The actual debt PLUS the unfunded mandates is:
$108,230,242,000,000 and rising every second.. http://www.usdebtclock.org/..
Each and every Man, Woman and CHILD in America owes: $350,201.00
With an Administration that refuses to reign in their spending what do we do? Some has suggested we VOTE.. Well of course we need to do that.. It is a shame that the average voter turnout is around 56%. http://www.infoplease.com/ipa/A0781453.html
But is voting enough. We have elections every 2 and 4 years. While neither election on its own is able to effect a massive change of proportions it can and has consequences as we saw last year. But how do we stop a machine that seems intent to simply drive us off the cliff by any means possible?
Our DEBT is killing America. According to the CBO by 2020 or so the COST of servicing that debt will consume over 90% of our GDP. Many may not realize what all this means. So let me try to explain it.
“What Does Gross Domestic Product - GDP Mean?
The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.”
When 90% of this product is sold just to service the debt then we stagnate as Country we cannot grow..
“*When external debt reaches 60 percent of GDP, it results in a 2 percentage point decline in the annual growth rate. At higher levels than that, growth rates are cut roughly in half.
*At debt-to-GDP ratios above 90 percent, the result is a 1 percentage point drop in the median (midpoint) growth rate, and average growth falls considerably more.Carmen Reinhart and Kenneth Rogoff — well-regarded economists from the University of Maryland and Harvard University http://omaha.com/article/20100111/AP09/701119922
What does a stagnant growth pattern mean to you: Well just look to Europe and Canada as two examples..
“June 29th, 2007 by Pat Schaufelberger
Reports in Canada showed unexpected zero economic growth for the month of April, the Canadian dollar came crashing down from a 30-year high. The Canadian currency dropped to 94.16 U.S. cents from yesterday’s 94.39.”
”The tremendous drop in value of the Canadian dollar against the U.S. dollar has hurt Canadian exports. As Canada and the U.S. have a close trade relationship, further impacts on the Canadian economy could be seen. Canadian exporters, such as Vancouver based Canfor Corp., have already taken hits. Canfor, as North America’s fourth largest lumber producer, posted a 1st quarter loss of $42.7 million Canadian.”Gocurrency/Canada
This from Time Magazine in 1998: On Japan
SPEND JAPAN SPEND
“Now Hashimoto is gambling that Japan's consumers can spend the economy back from the brink of recession. But his belated attempt at a quick fix may not be enough to induce the Japanese to open up their pocketbooks. It's certainly not enough to influence Osaka housewife Eriko Tsutsui, 46, who's putting aside money in case her husband loses his job at an advertising company. "The government's making up policy as it goes along. There's no move to address the fundamental problems," she says. "Until that happens, you have to save and protect yourselves…What's worse, after churning out more than half-a-trillion dollars worth of spending packages to snap the economy out of its almost decade-long slump, the government seems to be short on ideas, and leadership
Note the similarities.. in today’s Government.
We have to stop spending like there is no tomorrow because quiet possibly if they continue on this course the “tomorrow” we all will see might not be recognizable at all.
Our debt is choking us.. Healthcare, Education takeovers, Cap and Trade and on and on and on the assault goes. America needs Jobs. To accomplish this goal the Government needs to get out of the way and let the Free Market work.
Maybe if Obama had spent the last year on Jobs instead of spending bills then maybe a little light will be showing behind the cloud. But as we see it today there is no silver lining.