HERE WE GO AGAIN (National Debt)

October 2, 2018


Some information for this post is taken from the Concord Coalition

Business, corporate, government or individual fiscal year calendars and planners for the US fiscal year 2018 as defined by the US Federal Government, starting on October 1, 2017 and ending on September 30, 2018. The calendars cover a twelve-month period and are divided into four quarters. With that being the case, once again the clock begins ticking elevating our national debt.  As of 2 October 2018, at 0900 hours our national debt was about $21.5 trillion dollars.

As you can see, a trillion is a one with twelve (12) zeros behind it.  We have twenty-one of these to deal with.  The chart below was “shot” at sixteen (16) hundred hours (4:00 for you civilians) on 2 October 2018.  If that debt is allocated for each citizen and each taxpayer, the debt becomes $65,447 or $176,475 respectively. We all had better have a really really good year.

Right now, our debt is approximately ninety-four percent (%) of our gross domestic product (GDP).  In 2050 that debt is estimated to be one hundred and fifty percent (150%) our GDP, which is considered to be unsustainable.   The chart below will give you some idea as to how quickly our debt has risen.

Well, if misery loves company, we are not alone with issues of national debt.  The following chart give debt of the top twenty (20) countries with significant debt.  Not a pretty picture.

WHAT IS THE CURE FOR US NATIONAL DEBT?

Entitlement Programs – When social security was first enacted the life expectancy in the country was sixty-three (63) years old.  Today that life expectancy is in the late seventies (70’s).  If we’re to get our entitlement programs back into line, we should think about changing the eligibility age for social security and Medicare to at least the early seventies (70’s).

We should also change social security disability and loosen the eligibility for those who are over sixty-two (62) years old.  Those who can’t continue to do hard labor (construction) type of jobs would be eligible to collect earlier.  We would also have to make sure that medical insurance companies use community rating so those older Americans could get medical insurance at a “reasonable” price until they reached the age of eligibility for Medicare.

The Military – It makes no sense that the United States should spend more than the next ten countries combined for national defense.  We have significantly more firepower than we need and as a result we tend to trot this ability out to other parts of the world and work towards “nation building”.  It’s time that we go back to the levels of military spending we had under previous administrations and even make larger cuts.  We just can’t afford the size military we have and the interventionists policies that we’ve developed.  We really cannot protect the entire world endlessly.

Tax policy – It’s not only the rich.  We do need to change tax policy on the richest Americans.  They do need to pay more, but so does everyone else.  Right now, we have close to fifty percent (50%) of Americans not paying any income taxes.  This just isn’t fair.  If we’re all to participate in the good things that our country has to offer, then we all need to participate in paying a “fair” level of taxes to support those activities.  Everyone should have “skin in the game”.

Public workers compensation packages – Thirty years ago people went to work for the government knowing they were going to make less money, but their job security was going to be very strong.  Today according to John Mauldin, we have a situation where government workers are paid on average forth percent (40%) more than their private sector counterparts.  This is more than unsustainable.  There is no reason government workers should have this sort of bonus and it needs to be brought under control if we’re to reign in our government debt issues

CONCLUSIONS:

The above suggestions and possible solutions are only the tip of the ice burg.  The problem is: WE NEED TO DO SOMETHING and do it quickly—like this year, right now.

 

 

 

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