On March 1, the national debt of the United States exceeded $28 trillion dollars. What is the national debt?
It’s everything our government owes to the public – think bonds and borrowed money - and everything the government owes to itself – think Social Security and Medicare obligations. It’s $22 trillion in debt held by the public and $22 trillion in so-called “intragovernmental” debt – the government owes it to citizens through entitlement programs.The highly respected and nonpartisan Peter G. Peterson Foundation explains the national debt crisis in these ways:
Our
$28 trillion national debt is larger than the economies of China,
Japan, Germany and India – combined. It amounts to $218,000 per every
U.S household or
$85,000 for every American. If every American household paid $1,000 per
month toward the debt, it would take 18 years to pay it off. Currently,
Americans are paying $800 million per day in interest on the national
debt.
With
yet another massive COVID-19 relief stimulus package teed up on Capitol
Hill, some financial analysts are predicting unprecedented additional
national
debt growth on the nation’s horizon. But that’s after Republican former
President Donald Trump increased the national debt by $7.8 trillion on
his watch.
As
has been the case for years, Social Security and Medicare entitlements
as they exist today are in deep trouble and fiscally unsustainable under
current
law while at the same time 78 million Baby Boomers like me hurtle
toward retirement.
The
two largest segments of mandatory federal spending are in fact Social
Security and Medicare, estimated to be $2.966 trillion for Fiscal Year
2021. That’s
nearly 60 percent of all federal spending, according to the
Congressional Budget Office and the White House.
So
as a nation, the American economy hasn’t seen debt and deficits at
these levels since the end of World War II. But with the federal
government able to issue
30-year bonds at 1.4 to 1.5 percent interest rates, the cost of
additional government borrowing – even for $2 trillion – is from an
adjusted for inflation standpoint (gulp!) negative.
But
the multiple COVID-19 inspired stimulus plans, which have far
outstripped the Obama-era Great Recession stimulus plans, have escalated
debt and deficit
problems, and raised the urgency for finding Medicare and Social
Security solutions sooner than later.
Before
the nation’s debt and deficits rise during and supposedly after
COVID-19, Social Security was only projected to be solvent through 2035 –
14 years into
the future. Have the COVID-19 hits to the economy and the requisite
stimulus spending escalated that timeline? It’s likely that Medicare is
on a shorter fuse, say 2026, according to most experts.
In
addition, there are predictions that COVID-19 may well impact the
fiscal health of both entitlement programs. But other voices are urging a
calmer, more
rational approach.
Philadelphia Inquirer medical writer Stacey Burling wrote in February: “Over
the last year, COVID-19 has been especially devastating for people of
retirement age. As of mid-February, those 65 and over accounted for 81
percent of the pandemic’s deaths in the United States. More than 373,000
older adults succumbed to the new virus, according
to the U.S. Centers for Disease Control and Prevention.
“Scary
as that all sounds, Paul Van de Water, a senior fellow with the Center
on Budget and Policy Priorities, expects Congress to rescue these
crucial programs
before they’re forced to cut benefits to core voters.
“‘The
truth of the matter is that Congress never has and never will allow
these programs to run out of money,’ he said. ‘No one should lose a
moment’s sleep
that the pandemic and recession will cause their Medicare and Social
Security benefits to stop.’”
But the national debt? That’s worth some worry.
Sid Salter is a syndicated columnist. Contact him at sidsalter@sidsalter.com
31 comments:
Captain Obvious strikes again! And as usual Captain Obvious does not offer any solutions but instead demands them!
I wish i could get a refund for the time I wasted reading this drivel!
“On March 1, the national debt of the United States exceeded $28 trillion dollars. What is the national debt?
It’s everything our government owes to the public.”
Great talent on display
When does Sid find time to write his sleepy columns? Isn't he working full time at MSU in some upper management position?
I am the person who is always commenting about the Federal Reserve.
Debt/Usury is literally slavery. Why? Because the lender is earning wealth by taking the surplus of your labor in exchange for nothing more than loaning you some banknotes that they created from nothing that are backed by nothing but the same debt. The government shackled us by making it illegal for us to trade with any instruments other than those same bank notes.
Indebted Americans are actually slaves and our masters are who control the supply if currency. I am not against paper notes and fiat currency. But it is evil for our central bank to be in the control of anonymous private bankers who serve their own interests. Money should be the instrument by which a sovereign government facilitates the trade of her citizens and the collection of her taxes
They are our Money Masters
“I care not what puppet is placed on the throne of England to rule the Empire, ...The man that controls Britain's money supply controls the British Empire. And I control the money supply“
Baron Mayer Nathan Rothschild
Politicians say "What me Worry?" Our system of leadership bears little difference from the ruling regimes of so called socialist/communist countries. The aim of the politician is to become a member of the ruling class, the central committee, the administration, or the dictatorship. Once that is accomplished you achieve immunity from the consequences of your actions, you are free to pursue your dreams with other peoples money. You can make the people happy by spending THEIR money. Foolish spending? So what? Who's being foolish? the one who spends or the one who pays? We will not overcome these fiscal problems until we redefine leadership in our so called democracy.
Accountability must be real and something to be feared.
The deficit spending by Republicans and Democrats has created a false economy and nothing will be done about it.
Yes Sid I love the way to point out issues that no one cares about to get to your mixed up message. The National Debt is on the way up as usual. I loved the way you mentioned Trumps 7.8 trillion like that’s where it started. You didn’t mention that Obama raised it 10 trillion. And presidents before that started digging the hole. You state the numbers that the government owes itself but a lot of that debt is owned by foreign countries. Some not so friendly to the U.S.
And yes there are a lot of boomers heading for social security that may be empty when they get there. But the government could be smarter, yet they never seem to get the message. One huge mistake was the absolute disaster of allowing about 20 million illegal immigrants to pour across the southern border. It’s actually closer to 25 million now and may be over 30 million by the time Bidens term is over because he needs those democratic voters. And their all eligible for Social Security, Medicare, free housing and education all paid for by the national debt and now water under the bridge.
The next huge mistake is keeping troops in foreign lands. American troops are actually guarding the Chinese hi way into Afghanistan so the CCP can bring in raw materials that help them in stomping the United States into the ground. So bring ALL the troops home. As much as you hated Trump, he at least wanted to help Americans first.
Nobody knows what’s going to happen when the bill comes due but it will be a world changing event. The Communist Chinese are looking forward to it. The day the United States files bankruptcy.
National debt was $1 trillion shortly after President Reagan's inauguration. 40 years later it is almost 30 times higher. I mostly blame Republicans for their huge tax cuts and massive defense spending (under Reagan, Bush/Cheney, and Trump), but Democrats went along with the defense spending. I loved Bill Clinton's balanced budgets and regret voting for Bush/Cheney both times. Before anyone calls me a Democrat, I voted for Trump both times as the lesser of two evils and hate everything Biden has done so far. Only Democrat I have voted for in 38 years of voting was Obama in 2008 as response to Bush's outrageous Iraq War and tax cuts. I would like to cut defense spending, cut federal employee salaries, and go back to Clinton era tax rates to reduce deficits and hopefully balance the budget.
If Sid ever had a fastball, he has lost it.
When Harry Figgie wrote "Bankruptcy 1995: The Coming Collapse of America and how to stop it" in 1992, the national debt was $4.0 Trillion. The government has a chronic and unconscionable spending problem, and as a whole, does not give one damn about fixing it.
For several decades I have recognized that Mississippi's leaders consider any expenditure that benefits the lazy, irresponsible residents is money robbed from the industrious, ambitious, personally responsible tax payers of the state who obviously deserve a break. And their loyal constituents are certainly suckers for undeserved flattery.
We are addicts craving the government drug. We elect our drug pushers who know that to keep getting elected they must supply our habit. We will hate them if they cut us off. We will stop when we overdose. God help us then.
What does the national debt have to do with anything? Just print more money that we don't have (called "make believe" or "monopoly money") and keep sending it to other countries. Makes perfect sense. Fiscal responsibility - an undefined term for our Washington "leaders" and "representatives".
As long as we continue to think in terms of Democrat vs. Republican, they (the common masters of both) will continue to control us. The two-party paradigm has been nothing but a tool for control for many decades.
I loved Bill Clinton's balanced budgets ...
LMAO. You probably also believe that oral sex is not actually sex.
10:41,
I agree and take it a step further. Those same masters do everything they can to keep us divided in every conceivable way. Their worst fear is for us to all wake up and stop blaming each other but instead come together and direct the blame toward them where it belongs!
That’s why Jan. 6 has them so rattled.
Clinton had a balanced budget..... When there was a Republican Congress
Sigh...
Our national revenues are nearly $4 trillon.
10:01 am thought he actually made a point when he said Trump's debt was 7 trillion compared to Obama's 10 trillion without that two terms are longer than 1 that 4 years. Multiply much 10:01 am? And, you seem to forget that financial disaster Obama inherited. And, God forbid that any partisan would bother with the details of debt or study economics beyond the basic or listen to those who actually have spent decades of study rather than the hacks on tv looking to their own pocket.
If you did, you'd know that
Clinton agreed to balance but only after he took a shellacking in the '94 mid-terms.
Most "undocumented immigrants" (being PC here for KF, as we know the real title) will receive a check. Yes, any "undocumented immigrant" with a social security number will receive a check.
Most "undocumented immigrants" have a SSN.
Another name for "undocumented immigrant" is future democrat voter, if not already.
Source: Senator Ted Cruz
I wonder about those who view the national debt as mortgaging the future of generations to come. Do they believe that human-driven climate change is real? Is not the sustainability of the living environment at least as important as the economy? An what about the wealth that is wiped out annually by weather-related events, with increasing frequency?
11:26 AM, you've provided (and proved) nothing beyond presenting a difference of opinion. No, we don't expect that 'you'd know that'.
An what about the wealth that is wiped out annually by weather-related events, with increasing frequency?
Link?
@12:07 - https://weather.com
Oh my allah!
Now kingfishie is gonna troll troll troll away in the debt!!
Yes! It’s about time to start that up again!!!
A 4 year sabbatical was far too long you troll farm you!
I am so glad now we can focus on spending!!!!
Can’t wait for updates!!!!
12:07 Do you really need a link to Hurricanes Katrina, Rita, Isaac, Harvey, etc.? Have you already forgotten what happened last month in Texas? Do you really need a link to all of the "unprecedented" weather events and record-breaking high/low temperatures that continue to occur? Do you honestly doubt that the costs of these events are measured in trillions of dollars?
Or, perhaps by requesting a link, you really just answered my question that you do not actually believe that climate change is real. In any event, here's a link for you.
https://www.nasa.gov/press-release/2020-tied-for-warmest-year-on-record-nasa-analysis-shows
@12:54
weather.gov would be a better source if you are trying to be clever. But the planet is actually cooling since the highs of the early 20th century. The polar glaciers are cavitating because so much new ice is forming to push them to the ocean. And the most significant greenhouse gas in the atmosphere is actually water vapor followed by nitrogen, because there is signicantly less atmospheric co2 than nitrogen and Dihydrogen Monoxide
Yeah, climate change is real and the ChiCom flu just happened to jump from some obscure animal in an open air ChiCom public slaughter flea market to humans right before a national election in the good ol' U S of A and Tony Fauci is just this benevolent apolitical little doctor only interested in our well being, health and happiness. Yeah, I believe all of that stuff.
NASA no longer has the same credibility as it did during the first 30 years of its existence. Now they are a political arm of the left and filled with diversity hires and activist womyn and numales.
How many of you sore saps are going to send the money back to the US treasury. I am pretty sure that if you live in Mississippi, you qualify for a stimulus check! Put up or Shut up!
In their closed door meetings Wall St Bankers can see that when inflation comes it will maximize the value their equities while diminishing their liabilities against the national debt and Social Security. Wall St will win and Main St will get the stuck with the bills..... So what's new?
Post a Comment