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December 8, 2007

What The Reagan/Bush Debt Means To You

-- by Dave Johnson

As I write this, the US national debt is about $9.17 TRILLION dollars. This debt is the amount we have borrowed to pay for our government since the Reagan tax cuts - compounded by the Bush tax cuts. This is because of a choice we made - yes I say WE, because this government is US - to borrow and pay later instead of pay now.

Don't for a minute think that you do not owe that money. It comes to about $30,000 for each American, including infants. If you are a family of four you now owe about $120,000 thanks to those tax cuts. YOU owe this money, even though the tax cuts have primarily gone to the very rich. You WILL be paying it, one way or another. Don't think that debt like that just goes away.

PLUS now each year we pay about $433 billion for interest on that debt. That amount, of course, rises every year. So in addition to owing all that money we have to service the debt by paying $433 billion every year. That amount is larger than the current federal deficit - which means if we had not cut those taxes and borrowed all that money in the past we would have $433 billion more each year to spend or save AND we would not owe $9 trillion.

I do not understand how we tolerate this situation. Yes, it happened because we listened to lies, but how many of our candidates are seriously talking about the changes that need to be made to fix this?

The Gross National Debt

Posted by Dave Johnson at December 8, 2007 12:37 PM

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Comments

To answer your question: there is one candidate.

Ron Paul

Of course, he doesn't limit himself to talking about the nominal national debt. He also talks about the unfunded liabilities of the federal government (mostly Medicare). This amounts to $60 trillion or more. By focusing on the $9.2 nominal national debt, you're really minimizing the problems just like so many politicians do.

And, he's for real. Because he will stop the spending!

Posted by: Jay Muntz [TypeKey Profile Page] at December 8, 2007 10:17 PM

Ha I just clicked on that counter and in 20 seconds I owed another house.. But in all seriousness this is a big problem.. Teemed with a shaky economy, a declining housing market, the feds lowering rates(again) and we are already at "war" it will take a miracle to pull us out of that debt..

Posted by: Nick Abbott at December 9, 2007 12:39 AM

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