You're Voting For The Future Of This Country
Tuesday, 14. October 2008, 15:53:32
Oh wait, that's right we are a debtor nation. We currently owe other nations over 10 trillion dollars or $516,348 per household. For an update on how much we owe at this minute, here is the link:http://www.brillig.com/debt_clock/
A couple of things to think about:
1. The Iraq War. What was the bill that raised the money to finance the war? There wasn't one. Congress authorized the President to spend the money for invading Iraq but they didn't raise the money through taxes; they borrowed it.
2. The war In Afghanistan. Again, congress authorized the spending for the war but they didn't raise the money for the expenditure; they borrowed it.
3. Bush decreased taxes on the rich. This reduced the income of the government so the government had to borrow more to finance the day to day operations of the government.
4. The prescription drug plan. Bush grossly understated the cost of the drug plan and the costs are climbing daily with no end in sight. Again, Congress hasn't funded the bill adequately.
5. Many, many programs that the government funds are fiscally unsound. The government spends more on the program that they can afford. The solution? Borrow.
6. The bright spots in the government are Social Security and Medicare. Contrary to what Washington says, both programs are running a surplus for now. Why does the government say that the plans are in trouble? The revenues for both plans come in and the government immediately writes a IOU for the money that they take from the plans. It's like lending your money to a bankrupt individual with the same odds that you will get your money back. But, as more of the baby boomers retire the fund payout will exceed the income
7. The costs of the entitlement programs such as Social Security, etc. will exceed the government income between the years 2030 to 2040.
8. Almost half of the income of the Federal government goes to service the National Debt and it will become harder and harder to service our debt as more baby boomers retire. If we begin to default on our debt, goods and services and loans provided by other countries will stop and our total economy will grind to a halt.
9. Earmarks are the buzzwords in politics these days. The earmarks last year were around $44 billion. A huge figure but a relatively small part of our $2.8 trillion 2007 budget.
10. Our government recently authorized a $700 billion bailout for the financial crisis. It is unclear where this money is coming from. Did the government have $700 billion sitting in a room somewhere just waiting to be spent? If the government is cranking up the printing presses to make more money without backing it up with some kind of value it will seriously deflate the worth of your money.
11. The government recently gave AIG $84 billion to bailout the company. Again, was the money sitting in a room somewhere just waiting to be spent?
12. Every day we hear about more money being spent to bailout the economy. Where is all of this money coming from?
The above examples of our financial situation seem to indicate that we need to tighten our collective belts and trim our spending and increase our income. But then, I hear both candidates say that they have very large gifts for the citizens of this country. Granted, the two candidates have different recipients of that largess. One wants to give it to the middle class and the other wants to give it to the rich so that it can trickle down. Both are similar in that the programs are a raid on the treasury with little increase in the income of the government.
It's time to start sitting down and seriously reviewing our ideas of what we expect our government to do. I'm not really worried that either candidate will carry through on their campaign promises because the money just won't be there. It's time for a leader to step forward and tell the American people just what our finances are like. We have to reign in our spending and to begin to show the true cost of government programs. If people really knew the cost of these programs I doubt that many of them would be voted into law.
















