DEBT AND DEFICIT PERSPECTIVES IN THE UNITED STATES
YOU BE THE JUDGE
JUST THE NUMBERS
U.S. Total Production (GDP) $16 trillion
U.S debt $16 trillion (29% of all the household debt)
Medicare underfunding (liability) 50+ trillion (Trustees report, = all of U.S. household
debt)
Social Security underfunding 17 trillion (Trustees report)
Total debt and underfunding 83 - 112 trillion, estimated variously
Debt as % of household wealth 153% to 206%
U.S. annual deficit 1+ trillion (a tax of 37% of all the income of those
earning more than $250,000)
Total household (personal) wealth $54.2 Trillion 2009
Net worth of top 400 Americans 1.27 trillion 2009
Total income of over $250,000 2.7 trillion/year (much from investments)
Net worth
THE CONCERN
How can future generations and the middle class not be hit by the massive amounts owed, when there is not sufficient wealth (and number of people) owned by the wealthy?
It is impossible, mathematically, for the wealthy to cover these debts and deficits.
The middle class and future generations will be massively burdened with new taxes, mathematically.
Since one cannot possibly tax the "rich" enough to cover even the regular deficit, the other two programs must be balanced on their own. (This is what is called a "duh!" conclusion. But it doesn't become obvious until someone looks at all the numbers in perspective.)
If a person undersands this, a refusal to address and correct these as soon as possible suggests fiscal irresponsibility, which is not being addressed here as a moral issue but one that is a necessary set of actions that absolutely must be taken if the citizens and stakeholders of the United States are not to be severely damaged. (Ignorance of this in a politician is not acceptable. One should ask their representative if he/she reads these few pages, if he/she understands and agrees with them and what he/she will do about it.)
It has all the inevitably of a freight train rushing toward us, we must respond or be crushed.
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Yes, higher taxes may be necessary, but the negative economic effect of pulling money away from investing to spend it in goverment will reduce the amount of capital available and the growth of the economy. This is indisputable, though the amount of the effect is widely disagreed upon.
