Skip to content
Catholic Online Logo

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

10/30/2013 (2 years ago)

Catholic Online (www.catholic.org)

Liability could be higher when you consider not all adults pay taxes.

The federal debts is now so large that each American taxpayer owes 1.1 million in debt. Also, it gets worse. Much worse.

It will never be repaid.

It will never be repaid.

Highlights

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

10/30/2013 (2 years ago)

Published in Politics & Policy

Keywords: National debt, liability, 1.1 million, solutions, problem, balanced-budget, repudiate, bankruptcy


LOS ANGELES, CA (Catholic Online) - You now owe more towards the federal debt than you will probably earn over the rest of your lifetime. Your individual liability is now 1.1 million dollars.

That's $1,100,000 for every adult citizen in the U.S.

It gets worse. When you consider that about half of adult Americans actually pay anything in taxes, you realize that your liability is probably much closer to 2.2 million than the reported 1.1.

The national debt has just passed the $17 trillion mark with $7 trillion coming during the Obama administration's tenure. Add the "Affordable" Care Act to the mix and we're looking at trillions more because many Americans will enter the Medicaid system, Medicare patients are being dropped, and government subsidies are making up the difference.

It is time to recognize that our country is broken. We are broken in many ways (spiritually, morally, socially), but within the scope of this article, we are broken financially, and this will have a profound impact on our future. The credit of America is far from AAA.

Our government spends a little over ten billion dollars per day according to statistics reported by the Tax Policy Center. However, our receipts only cover about two-thirds of that amount. Future projections by the Center suggest better times ahead, but we will continue spending more than we take in for the foreseeable future.

Any disruption to our economy, a terrorist attack, a war, a financial collapse, or even a good recession can sink the economy further, making those dreamy, low deficit numbers turn into bigger nightmares.

Someday, the United States of America will be so far in debt that we will no longer be able to repay it, ever. Our creditors know this, but for now, they believe the U.S. will do anything to repay them. Only when they feel we're at the end of our financial rope, will they start cutting us off, then the pain starts.

There are only two possibilities for the country. One is to dramatically cut spending, by at least a third. Not over 10 years either, but immediately. Much of this would come from the military, but some would have to come from social welfare programs and various government schemes.

The most important thing is for the government to cut its corporate welfare policies out. Specifically, the government pays out much of its $10 billion dollars per day to contractors who bill the government premium rates for goods and services. Healthcare is also a major expense. Unless the government learns how to say no to high prices, we're doomed.

Of course, the ramifications of these policies is economic decline. A reduced military will reduce U.S. hegemony. That means less favorable trade in the long-run. The dollar could lose its status as the world's reserve currency. Cuts at home would reduce spending stimulus. Welfare money is expensive, but it sure stimulates the economy, because these recipients spend all of it-they can't afford not to.

The cuts in big-time payouts to government contractors would also be pretty painful. Quality would drop, unemployment would increase, but we would have fewer millionaires living in belts around the D.C. area where a surprising concentration of government contractors now reside. These people would have to enter the more competitive, private market to maintain their fortunes. It would be harder for them, but increased privatization of some government services would give them a new niche while reducing costs. Naturally, we don't want to bankrupt these citizens who also pay the most taxes, but we also don't want them suckling upon Washington either. They consume much more than they pay. Yes, they're going to hate this-vehemently. Do we really have a choice?

The impact to medical care would also be unknown, but cutting back on this expense in the form of smaller payouts, possibly even price controls, would lead to shortages. There would also be much less innovation in healthcare coming out of the United States, although current innovation is of questionable value when every new drug sells for a price that can bankrupt a family within weeks.

So such cuts would be painful, they would provoke an immediate recession, but are the only way to wrangle the economy back under control. Future administrations would have to keep up the discipline, possibly through a balanced-budget amendment.

If the first solution is a crash-diet, then the second is liposuction. The United States could, theoretically, repudiate its debt. In other words, the nation would declare bankruptcy and stick debt holders with the loss. The country would wipe its debt-slate clean and start again at zero.

Of course, even if this were truly possible, we would have to start over on a diet, because our credit would be ruined-no more easy money to fund government, and we would never again be able to afford massive expenditures because the funding would not be there. A balanced-budget would be forced on the nation because nobody would loan us money, at least not for a long time.

In actuality, the most likely result is the second one, in another generation or so. There's no way to tell what the future really holds. For now, we seem to be hoping that the next generation discovers some breakthrough that will bring surpluses back to our economy, just as the development of the internet did in the 1990s.

However, the likelihood of that is quite small.

No child should be born with a debt against their name, especially a debt that for them produces no return. Our massive fiscal irresponsibility is a product of our broken political system, the malignant spread of liberal spending policies, ironically perpetuated by Republicans and Democrats quite alike, and the doting of our leadership on both corporate and individual welfare recipients. If you are poor, you love the government. If you are rich, you have reason to love the government too, the rest of us, not so much.

Our house of cards will collapse one day. We had best decide now how to manage it, because it will happen. The sooner we start, the easier it will be on everybody, and our troubled republic.


A birth foretold: click here to learn more!

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2016 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for May 2016
Universal:
Respect for Women: That in every country of the world, women may be honored and respected and that their essential contribution to society may be highly esteemed.
Evangelization: Holy Rosary: That families, communities, and groups may pray the Holy Rosary for evangelization and peace.



Comments


More Politics & Policy

LOL! Clinton chief upset about what happens when a public servant breaks the law, begs judge to save her from criticism Watch

Image of Cheryl Mills is unhappy that her deposition might become the source of criticism.

By David Drudge (CALIFORNIA NETWORK)

Hillary Clinton's former chief of staff from the State Department, Cheryl Mills, has asked a court to shield her from conservatives who are seeking the transcripts and recordings of her deposition scheduled for Friday. Mills is worried she will be taken out of context ... continue reading


REVEALED: China has an army of paid trolls, guess who else has one? Watch

Image of Don't feed the trolls.

By Marshall Connolly (CALIFORNIA NETWORK)

The next time you encounter an internet troll, be warned, he could be getting paid to fan the flames, or to douse your conversation. A new study our of Harvard reveals that China is using an army of 448 million fake troll accounts to influence public opinion. And China ... continue reading


REPORT: Inspector General SLAMS Hillary Clinton for BREAKING LAW, was WARNED by staffer, whom she PUNISHED! Watch

Image of Audit: Hillary Clinton broke the law.

By David Drudge (CALIFORNIA NETWORK)

The State Department Inspector General has ruled that Hillary Clinton broke department rules for using a private email server and for deleting emails she sent and received during her tenure. The report was released on Capitol Hill today. LOS ANGELES, CA (California ... continue reading


You won't believe who buys the most weapons from the US! Watch

Image of The United States provides the most weapons to which country (NATO)?

By Kenya Sinclair (CALIFORNIA NETWORK)

The United States provides 33 percent of the world's arms such as fighter jet aircraft, tanks and more - so which countries are buying? LOS ANGELES, CA (Catholic Online) - According to the Defense Security Cooperation Agency, the number one country purchasing ... continue reading


Obama risking national security to meet political obligation? Watch

Image of Is the Obama administration sacrificing national security in favor of meeting quotas (Reuters)?

By Kenya Sinclair (CALIFORNIA NETWORK)

With many Senate Democrats calling for a faster processing, the Obama Administration and U.S. Citizenship and Immigration Services (CIS) have drastically increased the number of Syrian refugees admitted into the United States. LOS ANGELES, CA (Catholic Online) - ... continue reading


FBI investigating Gov. McAuliffe, Clinton Foundation for Chinese ties Watch

Image of Virginia Gov. Terry McAuliffe is under FBI investigation for accepting illegal campaign contributions.

By David Drudge (CALIFORNIA NETWORK)

The FBI is investigating Virginia Gov. Terry McAuliffe on the grounds that he accepted illegal campaign contributions. There is overlap between his donors and donors to the Clinton campaign. Investigators have discovered that a Chinese politician made a particularly ... continue reading


American Steel v. China's Production - There is no such thing as free trade Watch

Image of American steel jobs have drastically fallen (iisssc).

By Kenya Sinclair (CALIFORNIA NETWORK)

As American steel production falters, China has begun efforts to dump its excess steel at slashed prices. LOS ANGELES, CA (Catholic Online) - According to Thomas J. Gibson, president and CEO of the American Iron and Steel Institute, and Chuck Schmitt, president of SSAB ... continue reading


'Shame, shame, shame': House Democrats boo Republicans Watch

Image of House Republicans halt the hostile amendment in its tracks (EPA).

By Catholic Online (NEWS CONSORTIUM)

Chaos erupted as the US House of Representatives refused to pass an amendment meant to strip away religious freedom and protections for religious contractors and those who work with the federal government. LOS ANGELES, CA (Catholic Online) - When House Democrats ... continue reading


Judge SPANKS Obama's attorneys who LIED to the court! Watch

Image of Judge Andrew Hanen shut down Obama's attorneys for lying.

By David Drudge (CALIFORNIA NETWORK)

An angry federal judge has ordered Justice Department attorneys to take annual ethics classes for lying. The lies told by Justice Department attorneys tricked 26 states into filing a lawsuit against the administration. LOS ANGELES, CA (California Network) - U.S. ... continue reading


Bill Clinton, America's favorite rapist? Watch

Image of Thew family that rapes together, destroys women's rights and justice together.

By David Drudge (CALIFORNIA NETWORK)

As Hillary Clinton declares herself the presumptive nominee of the Democratic party amid the cheers of millions of millennial supporters, few people seem to remember that her husband, Bill Clinton, is an accused serial rapist. And far from being a supporter of women' ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

  • 70-year-old Christian woman stripped and beaten by Muslim mob
  • Daily Readings for Friday, May 27, 2016
  • Blessed Mother Teresa of Calcutta HD Video
  • St. Augustine of Canterbury: Saint of the Day for Friday, May 27, 2016
  • Daily Reading for Saturday, May 28th, 2016 HD Video
  • :-D MILLENNIALS REJOICE! New emoji Bible translation is coming!
  • $3,600,000,000,000: the price to repair America

Daily Readings

Reading 1, Genesis 14:18-20
18 Melchizedek king of Salem brought bread and wine; he was a priest of ... Read More

Psalm, Psalms 110:1, 2, 3, 4
1 [Of David Psalm] Yahweh declared to my Lord, 'Take your seat at my ... Read More

Gospel, Luke 9:11-17
11 But the crowds got to know and they went after him. He made them ... Read More

Reading 2, First Corinthians 11:23-26
23 For the tradition I received from the Lord and also handed on to you ... Read More

Saint of the Day

Saint of the Day for May 26th, 2016 Image

St. Philip Neri
May 26: If one had to choose one saint who showed the ... Read More