Thread: The U.S. Is Not Drowning In Debt
#1 The U.S. Is Not Drowning In Debt
07-30-2011, 03:28 PM
- Join Date
- Aug 2005
In case you haven’t noticed, Washington is currently consumed in an acrimonious debate over whether to raise the debt ceiling.
There is no agreement about whether to do so or how, but both parties appear to accept the logic that the United States is suffering from an unacceptably high level of government debt and that further debt will doom the U.S. to generations of decline.
Judging by polling data, large swaths of the country agree. Nonetheless, that consensus is wrong.
The Republicans have generally been most vocal on this score. Eric Cantor, the House Majority Leader and a major player in the negotiations, has said,
“The government is a fiscal train wreck. It is over $14 trillion in debt and borrows nearly 40 cents of every dollar that it spends. Before us lie two divergent paths: one defined by crushing debt, slow growth and diminished opportunity; and one defined by achievement, innovation and American leadership. We stand at a crossroads. If we are to leave our children a nation that offers everyone a fair shot at earning their success, we must take the later path… House Republicans have taken an honest, responsible approach to confront the debt crisis facing our nation.”
Yet even President Obama believes further debt is untenable and has pledged to cut spending by trillions of dollars in the coming years.
What neither side seems to recognize — or at least acknowledge — is that what matters about the debt isn’t the dollar amount per se, but how much it costs us to service it. And by that measure, the debt isn’t nearly as big a problem as it’s being made out to be.
07-30-2011, 04:19 PM
Yet more cognitive dissonance from the Left. $14.5 trillion amounts to $47,320 of debt for every man, woman, and child in the United States. Ok, that's pretty bad, but it is certainly not insurmountable. However, what the good Mr. Karabell conveniently leaves out of his nifty little equation is a little thing called "unfunded obligations".
This is money that has been authorized to be spent on entitlement programs and just hasn't been collected by the recipients it's been promised to yet (e.g. today's 20-65 year olds' SS and medicare). This pesky little budget consideration, that seems to elude the pinhead who wrote the linked article, is estimated to be around $61.6 trillion (some estimates reach as high as $80 trillion +). That, my friends, amounts to a whopping $201,300 of debt for every man, woman, and child in the United States. And that's as of today.
Yeah, don't worry, be happy."Our president delivered his State of the Union message to Congress. That is one of the things his contract calls for -- to tell congress the condition of the country. This message, as I say, is to Congress. The rest of the people know the condition of the country, for they live in it, but Congress has no idea what is going on in America, so the president has to tell 'em." ~ Will Rogers
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