It’s an election year! Let’s take a moment to put politics aside and just look at the math.
I don’t know where you get the $55k vs. $96k. According to CBO, the federal government spent $3.688T and took in $3.250T for 2015. This means they spent about 13% more than they took in. If we want to compare it to a household making $55k, that would be about $62k.
Note that spending of $3.688T is about 20.7% of GDP. This is a very low percentage by the standards of other industrialized countries. We could easily raise more money (including pay for the modest $75B that Bernie’s college plan would cost) if we were willing to do things that would hit upper-middle-class families, like raise the cap on social security taxes.
The federal deficit is 2.4% of GDP. Since GDP expands by about 2% per year and inflation grows by about 2% per year, we could run deficits of this size in perpetuity and never have deficits above 100% of GDP.
To use words like “crazy” and assume a national government has to behave in the exact same way a household would is fearmongering.
Using expenditures ignores accrued liabilities. Burden would be on you to show that normal laws of finance don’t apply to sovereign finances
Any way you look at it borrowing money for operating expenses is beyond stupid … which is what our government has been doing for years. My grandchildren will painfully pay for this …. not me. Sad
Sir Moosington, Stop dreaming, your figures portend to show US debt for one year. To date the US gov owes 18 Trillion dollars, a debt that will never be paid, Not in 1800 years.
Agreed. A country is not the same as a household unless that household has a printing press in their basement. Every sovereign state in the history of mankind since the invention of money has run a deficit over time. Since the invention of fiat money we are not dealing in debt or deficits but in terms of confidence. Do you trust the people in charge of the money supply? Do you trust them to maintain the value of your currency? Right now the dollar is the strongest currency in the world and the most trusted. Whatever it is we are doing, we are getting the results we need. All of those fear mongerers who bought gold have been taken out to the woodshed. Will they eventually be proven right? Maybe, but maybe not in their lifetimes.
Honestly, congress needs to be filled by Dave Ramsey-ites who’ve been to FPU and/or who understand that we’ve GOT TO STOP all the debt. This won’t end well. We have to stop demanding the govt. pay for your life. These Ramsey-minded congresspeople need to collar the national budget and get spending in line with revenues, b/c the current crop seems deaf to it. We need to pay down the deby and become a responsible nation. Pretending all this debt doesn’t matter won’t work.