Posts Tagged ‘national debt’

National Debt

September 12, 2017

I am concerned about our national debt.  We continue to spend more money than we take in.  Every month we create a bigger problem for our nation.  If our government were a family or a business, it would clearly be heading towards bankruptcy.

Can a government go bankrupt?

For a family or business, this problem is pretty straight  forward.  You must reduce your spending, increase your revenue or a combination of both.  I imagine that it is the same for a country.

Our leaders need to be taking this more seriously.  It is not enough to reduce the annual deficit.  We must eliminate the annual deficit and begin paying off our debts.  Cutbacks in spending is the first step.  Of course, people will be unhappy when something that they care about is reduced or dropped, but tough decisions need to be made.  Families do it all the time.  Businesses do it all the time.  Our country and our leadership need to distinguish between those things that we truly need to have in our budget and what things we can do without.   If you do not want to eliminate programs then you must reduce the amount spent on each.    The total expenditures should not exceed the total income.

Revenue could be increased by reducing or eliminating some of the many tax credits that are offered both to businesses and to individuals.  Tax rates also could be raised.  Taxes were higher back in the 90’s, but I seem to remember it as being a fairly prosperous time as a nation.   At the end of the Clinton presidency, we actually had a surplus.  Unfortunately, the first thing that President Bush did was to give that money back to the people and lower tax rates.  The tax rates should have been left alone.  The surplus should have been used to start paying down our debt.

We have a problem and it is getting bigger.  Our politicians need to make the tough decisions.

We can encourage them to act by creating awareness and calling for action.

We can contact our senators and representatives and tell them that this is important to us all.

 

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Something’s Not Right

April 12, 2010

According to the Quad City Times, April 8th edition, nearly half of U.S.  households will not have to pay any federal income tax.

That just doesn’t seem right. 

Why should one half of the country pay the cost for the other half?  I understand that the people who make more money should pay more in taxes, and I fully support that concept, but that doesn’t mean that 47% should pay nothing!

Politicians get elected by lowering taxes.  Politicians think that rebates and credits will stimulate the economy.  So politicians reduce national income and increase spending.  This is a problem.

It has gotten out of hand.  We have an enormous national debt.  We need to reduce spending and increase tax income.  We need to be financially responsible as a country.

Everybody who has an income can pay something.  We should be sharing the load, not getting a free ride.

Cut Back!

March 11, 2010

If an individual is spending more money than they make, they must either make more money or spend less.  If they decide to spend less, they will maintain the essentials and trim back on the non-essentials.

The same is true in the business world.  If you are not making a profit, then you need to remove non-essentials from your operating costs.  This can sometimes involve painful decisions.  It is important to make the right cuts.

The same is true with our government.  It is time to recognize  what is necessary, and what is non-essential.  It is high time to reduce spending in non-essential areas. It is not a time to be spending more money.  It is time to be spending less.

National Debt Reduction

March 10, 2010

I have an idea.

Personally, I think it is pretty good.

We have a huge national debt, with basically no repayment plan.  We just keep spending more money and racking up the debt and I don’t hear much talk about what we are going to do about it.

What if we tied political campaign contributions to debt relief contributions?

If you make a contribution to a political candidate, then, let’s say 50% of your contribution goes to the candidate’s campaign, and 50% goes to debt relief.

Furthermore, any candidate that leaves elected public service should surrender their remaining war chest funds to debt relief.

We really don’t need quite so much money spent on attack ads and telephone solicitation.

We sure could use some help paying off the debt our politicians have created.

What’s the Plan?

February 11, 2009

President Bush was severely criticized for not having an exit strategy for Iraq. 

What is the plan to pay back the debt that we are accumulating?  As our congress, pushed by our president, is about to pass legislation that will saddle us with yet another huge bill to pay, I want to know, what is the exit strategy?  How will we get our country out of debt?  Can we even pay the interest?  Before we sign for a loan, can we know the terms?  Where is this money coming from and how will we pay it back?  I don’t hear anything about those little details.

The current crisis in the banking industry has come about because banks made loans to people who couldn’t afford to pay them back.  The loans were bad for both parties. 

At what point are we as a country going to learn that we cannot borrow and spend our way out of our troubles?

At some point, families, businesses, and yes, even countries, must realize that they need to make changes.  They must make hard choices.  They must work on a budget.  They need to make more money than they spend. 

What is the cost?  We are going further into debt by astronomical numbers, lead by our president who proclaims that this is the way.  One thing about debts, they do not just go away.  Sooner or later you have to pay the bill.

Can a country declare bankruptcy?  What happens when the creditors demand payment and we don’t have the money?  Who are the creditors?  Isn’t one of them China?  Does anyone else think it is a bad idea to be deeply in debt to another country?  Especially a communist country? 

What is the exit strategy?

National Debt Reduction

November 10, 2008

I was amazed at how much money Obama was able to raise for his campaign.  He is obviously good at getting people to contribute to a cause. 

Maybe he could use that skill to reduce the national debt.  On the tax forms that we file every year there are boxes where we can make contributions to this cause or that cause.  Maybe we could add a box where we could contribute to paying off the national debt.  I don’t know what our arrangements are, or who we owe this money to, but the normal loan has payments of principle and interest.  We could establish a way for people to contribute to paying off the principle of the national debt by their donations.  

This first year, all of those people who make over 250,000 who voted for Obama could voluntarily contribute the difference between what they pay for taxes under Bush and what they will be paying under Obama.  That would be a nice start, and it really wouldn’t cost them any more than what they have offered to pay the government anyway.  Plus, there are many average Americans who recognize the need to pay down our debt, who might just check that box, and make a contribution. 

You have to start somewhere.

Just Say No!

October 22, 2008

Enough already!!  I like free money as much as anyone, but I really don’t think that the government giving away yet more money in the form of stimulus checks is a good idea.  There comes a time when it is necessary to tighten the belt and start being fiscally responsible, and we are way past the time.

Is the national debt simply going to go away?  Do we simply close our eyes and pretend it isn’t there?  If we thought it was bad when financial institutions fell apart because of loan practices, how bad will it be when the U.S. government falls apart financially?  Will we start to make better choices or will we run full speed into the wall?

Will somebody please do something about overspending?  Our government is like the person who has maxed out their credit cards, so they get a new one so they can charge more.  Sooner or later you are going to have to pay the bill.  Congress reminds me of a person who, while driving,  begins to slip on an icy road, and in a panic over steers, and loses control.  They are making a bad situation worse.

We keep adding to the debt.  When and how are we going to pay it back?