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View Full Version : The federal debt, deficits, and you


Caswell
08-07-2006, 09:15 AM
After seeing a quote in another (now deleted?), I thought it important to clarify some details about our nation's financial situation:

Bush cut taxes. Of course, there is also that 7 trillion dollar national debt he created. From cutting taxes.

Bush did not create the entire seven trillion dollar debt. I'm no Bush apologist, but people often get the debt and the deficit confused.

The deficit is the year to year shortfall in annual spending versus annual tax revenue. The debt is the cumulative amount of money our government has racked up in deficit spending over the years. Even in years where there was no deficit, the debt has increased.

http://www.publicdebt.treas.gov/opd/opdhisto4.htm

If you want to ponder how ugly things truly are, remember that the Social Security "trust fund" has been systematically drained via special-issue, non-marketable bonds (a non-politician would call these IOU's) and put into the general fund to mask the size of the deficit. This has been going on since its inception under FDR, despite what any politician tries to tell you about a "lock box".

The pillaging of the fund has been possible because Social Security incomes have always exceeded expenses. In about ten years that changes, and not only will we have the excess Social Security income padding the deficit, but we'll have to pay back the IOU's so that the benefits can be paid out to those that become eligible. It's all scheduled to collape completely in 2042.

Our country is bankrupt. Has been for decades.

zhan
08-07-2006, 09:45 AM
i dont think this forum let u talk about sensitive issues like politics and such...

Roffey
08-07-2006, 12:40 PM
I stand corrected.

However, cutting taxes did not help.