Friday, May 29, 2009

Your bill: $546,668 government debt per household

According to an analysis by USA Today, American taxpayers “are on the hook for an extra $55,000 a household to cover rising federal commitments made just in the past year for retirement benefits, the national debt and other government promises.” Federal obligations now stand at a record $546,668 per household, quadruple what the average U.S. household owes for all mortgages, car loans, credit cards and other debt combined.

This debt is composed of medicare obligations, social security, Federal borrowing, civil service retirement obligations, military pensions, and miscellaneous other debts. And, we are not through adding to this debt load. With national health care in the works and continueing massive government spending, the debt burden will only grow. More and more tax receipts will have to go just to pay the interest on the debt.

Does anyone really think that we can grow the economy sufficiently to pay off this debt? Government borrowing will freeze out private investment and with anti-growth policies like cap and trade being anticipated and with greater government involvement in the economy, I do not look for vigorous economic growth to pull us out of this hole. We are much like a household that is borrowing on the credit card to pay the electric bill and each month we must borrow more just to keep the lights on. The difference is that in a household, eventually the credit card will max out. Unlike a household, government can print money. The only way we can pay our debts is with cheaper dollars. Does anyone doubt that massive inflation is not in our future?

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  1. This ireally sucks. The deficit is running into trillions and some countries have got the U.S by the *lls excuse my French. It's time to reduce this deficit otherwise the U.S will be in critical danger, that and North Korea's threats, not good at all. I hope this Government will act wisely to reverse the borrowing trend that has the U.S Economy in tatters. Good luck and I will pray for the American People. We all need to pray and ACT. Even if we are not living in the U.S it still affects the Global economy at large adn Globel Poverty is increasing instead of decreasing. The g8 didn't live up to its promise of eradicating poverty by 50% by the year 2016.

  2. Good thing we got a $787 billion stimulus package. I'm just waiting on the blame Bush stories to crop up.

    If China stops buying our debt we'll be f***ed.

  3. Passing by here. To Harrison: here it is.
    8 years of bad administration. I thought you american are the wisest and cleverest...oh I know...that's just in the movie!
    Now you whining over bad economy hahah, don't say you don't see it coming. You elected IT for God's sake!

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