Diadem wrote:In all seriousness. How does the US ever expect to plug that hole? That's $4,161 per person, just to break even. I don't see a family of 4 paying a 16k tax raise without going bankrupt.
How about we acknowledge that the US debt isn't particularly meaningful, that the US's debt as a proportion of its annual GDP is actually quite reasonable compared to the rest of the developed world, and then go on to point out that the majority of that debt was accrued under Bush because of irresponsible tax cuts that are now under consideration for extension, and that the entire "HUGE DEBT BAD!" thing is primarily a Republican propaganda campaign to smear the Dems?
1.3t / 14.5t = 9%
According to EU rules
, any deficit over 3% GDP is unsustainable.
In another news flash, it was about 2.5 % GDP under Bush. The transition from 2.5% to 9% happened over 1 year - the stimulus plan and TARP passed, making FY 2009 extraordinarily high compared to 2008. Spending did not go back down to pre-stimulus levels, and (by the current congress) is not projected to
As for "the majority of that debt was accrued under Bush"
Purple is where Bush ends. Green is where Obama starts. "Extended Baseline" is if no new policy was enacted.
See the vertical part of the purple line in 2008? That's TARP. About 10x more debt was accrued from TARP than the rest of the entire Bush presidency. In Fact, for the majority of 2000-2008, the debt as a % GDP..wait a second..did not actually change that much! Maybe the smear campaign was actually that the Republicans weren't actually that irresponsible in the first place?
I'm just going to reinforce that this is the DEBT. This is the amount of money we paid interest on. It doesn't matter if the Iraq War was in the budget or not, it still shows up in the debt.
big boss wrote:Many people fail to realize that much of the debt is owed to American citizens themselves and it is not as bad as the media makes it out to be. So yea that may turn out to be $4,161 per person in a tax but much of that money will be returned to U.S. citizens when the debt is actually paid, this may make the rich richer since im assuming that the debt is mostly owed to rich folks and not poor people seeing as they don't have the capital to invest in government, but thats a tale for another day. So yea the national debt is not going to ruin the U.S. any time soon.
If you default on the debt owed to "Rich Americans", you damned sure will ruin the US. Remember the top 20% of earners fund ~ 80% of the budget through their taxes, and even more through their buying of bonds. We live in the internet age. I can transfer my bank account to Switzerland with 2 mouse clicks. Sure, there might be taxes to pay on that transfer of funds, but if I currently pay 40k a year in taxes, a one time lump sum of 100k doesn't fix the long term annual shortfall I just created. Also, if the government starts defaulting on its debts to Americans, why would Americans keep paying their taxes?