Skip to content
Catholic Online Logo

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

10/30/2013 (1 year 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 (1 year 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'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for June 2015
Universal:
That immigrants and refugees may find welcome and respect in the countries to which they come.
Evangelization: That the personal encounter with Jesus may arouse in many young people the desire to offer their own lives in priesthood or consecrated life.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Politics & Policy

Presidential candidate Mike Huckabee speaks out on Obama's gay pride light show and the legalization of gay marriage Watch

Image of

By Hannah Marfil (NEWS CONSORTIUM)

In celebration of the Supreme Court's gay marriage ruling, President Obama lit up the White House with rainbow colors, which garnered a response from Republican, former Arkansas governor and now presidential candidate Mike Huckabee. Huckabee was noted as saying that ... continue reading


Supreme Court 'unwrote laws of nature' GOP presidential candidate Mike Huckabee declares Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

Saying that the Supreme Court tried to "unwrite the laws of nature and the laws of nature's God" when it legalized gay marriage across the nation last week, GOP presidential candidate Mike Huckabee also pointed out the fact that President Barack Obama himself ... continue reading


'They will stand behind lying Brian Williams, but won't stand behind people that tell it like it is': Donald Trump fired from NBC for controversial immigrant statements Watch

Image of Donald Trump retired from The Apprentice after announcing his presidential bid.

By Abigail James (NEWS CONSORTIUM)

NBC has made the decision to cut ties with Donald Trump, over his political view and controversial statements regarding immigration made during his presidential announcement. Donald Trump and NBC have had a relationship, including Trump's produced Miss USA and Miss ... continue reading


When is the best time to take out Social Security? Watch

Image of 100-year-old woman.

By Talia Ramos (NEWS CONSORTIUM)

Financial advisers usually advice their clients to take Social Security benefits at the age of 70 for maximum growth. However, it is found that most people don't take that advice, as they are likely to withdraw what they have saved up as soon as they hit retirement. A ... continue reading


IT'S NOT OVER: Freedom of Religion may trump same-sex marriage victories Watch

Image of

By Matt Hadro and Adelaide Mena, CNA/ETWN News

Friday's Supreme Court ruling against the traditional understanding of marriage may pose huge obstacles to the free exercise of religion and conscience across the U.S., the nation's bishops have said in response to the decision. Washington D.C.(CNA/EWTN News) - ... continue reading


Decisions on same-sex marriage, power-plant emissions now in the hands of Supreme Court Watch

Image of Six major cases, all of them affecting the American Way of Life are in front of the Supreme Court.

By Catholic Online (NEWS CONSORTIUM)

Six major cases, all of them affecting the American Way of Life are in front of the Supreme Court. Decisions regarding same-sex marriages, power plant emissions and execution methods will all be rendered by either Friday or early next week. LOS ANGELES, CA ... continue reading


Obama adviser Valerie Jarrett's family has strong communist roots, files prove Watch

Image of Valerie Jarrett's father, pathologist and geneticist Dr. James Bowman, has been found to have had extensive ties to Communist associations and individuals.

By Catholic Online (NEWS CONSORTIUM)

Does the apple truly fall far from the tree? Recently uncovered files show that Valerie Jarrett, a senior adviser to U.S. President Barack Obama and trusted confidant has family ties with those with communist leanings. These uncovered files prove that Jarrett's ... continue reading


Donald Trump surges in popularity polls in New Hampshire Watch

Image of Dismissed by political professionals, who view him as little more than a

By Catholic Online (NEWS CONSORTIUM)

Dismissed by political professionals, who view him as little more than a "novelty candidate," there's no denying Donald Trump's surge in popularity in opinion polls in New Hampshire. The billionaire developer and reality TV show star comes in at second among ... continue reading


Terrorists who pose as journalists will no longer have protection from the U.S. new Pentagon manual states Watch

Image of The new manual from the pentagon is designed to reflect the fact that many fighters do not wear military uniforms or pretend to be trusted civilians to hit targets.

By Matt Waterson (NEWS CONSORTIUM)

The Pentagon has released new instructions on dealing with terrorists, or more specifically, terrorists who pose as journalists or journalists who work with terrorist groups. LOS ANGELES, CA (Catholic Online) - The "Department of Defense Law of War Manual" is a ... continue reading


Offensive or not? University of California issues bizarre speech police to tell you what not to say Watch

Image of The University of California administration issues handout that recommend students refrain from using some words.

By Talia Ramos (NEWS CONSORTIUM)

University of California is providing suggestions on what to say and what not to say within the campus grounds. However, the words and statements they deem as offensive, sexist and racist are not simply explicit words with direct negative connotations. According to ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

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

Daily Readings

Reading 1, Genesis 21:5, 8-20
5 Abraham was a hundred years old when his son Isaac ... Read More

Psalm, Psalms 34:7-8, 10-11, 12-13
7 The angel of Yahweh encamps around those who fear ... Read More

Gospel, Matthew 8:28-34
28 When he reached the territory of the Gadarenes on ... Read More

Saint of the Day

Saint of the Day for July 1st, 2015 Image

Bl. Junipero Serra
July 1: Miguel Jose Serra was born on the island of Majorca on November ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter