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Wednesday, May 5, 2010

Getting a Picture of the Debt

I was playing with some numbers trying to get a handle on the national debt. A 13 trillion dollar debt would cost each family about $130,000 before interest. If we were to accumulate no more debt and pay off the 13 trillion dollars (that is $13,000,000,000,000 written out) over a 30 year period just like our home mortgage that would cost each family about $1000 a month. The interest would be nearly 26 trillion dollars. That is money that most likely will not be put back into the economy; it will go to foreign nations, mostly China.

Another way to put it; the loss of jobs each year just to pay off the debt would be about 8 million, a way of saying 8% permanent unemployment. Which also means the 8 million out of work will not be paying their fair share so the burden will be continually shifting up the ladder to the working families. With the government wanting to take an even greater share away from working families by increasing taxes, that will mean more and more money will be taken out of the economy and greater unemployment. Can you see why socialist nations like Greece and France have a permanent 20% unemployment rate? And we think 10% is really bad.

The answer for this mess is simple, so simple a cave man could understand it. Quit spending, cut cost, make government smaller and increase our economic base by cutting taxes to release money into the productive economy. We need a pro-growth economic policy not a share the wealth policy to pay off the debt as soon as possible.

The doom and gloom is if we don’t do these things to eliminate the debt then America will cease to exist. This is what we MUST do if we want America to continue.

Nubby


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