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 July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More Politics & Policy

'The whole Bible is incredible': Donald trump ridiculed for not naming favorite Bible verse Watch

Image of Donald Trump claims the Bible is his favorite book.

By Kenya Sinclair (NEWS CONSORTIUM)

During an interview with Bloomberg's Mark Halerin and John Heilemann, presidential candidate, Donald Trump was asked to name his favorite Bible verse but refused to name one. LOS ANGELES, CA (Catholic Online) - Seven minutes into the interview, Halerin told Trump, "You ... continue reading


EVERY 93 SECONDS: Foreign children born on U.S. soil Watch

Image of Children of immigrants born on United States soil appear to be wearing out their welcome, according to recent polls.

By Catholic Online (NEWS CONSORTIUM)

Children of immigrants born on United States soil appear to be wearing out their welcome, according to recent polls. It is estimated that a child of illegal immigrants is born every 93 seconds in the U.S. According to a 2011 Rasmussen Poll, only 28 percent of likely ... continue reading


Univision anchor Jorge Ramos EJECTED from Donald Trump press conference Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

"Go back to Univision," GOP presidential nominee Donald Trump told Univision news anchor Jorge Ramos at an Iowa press conference. Well regarded by his peers, there was no gravitas afforded Ramos at the event, as a security guard escorted him away. The occasion ... continue reading


The do-nothing Boehner is not only stupid, he's pro-Planned Parenthood - revealed by his incestuous political relationship with an abortion-affiliated adviser Watch

Image of Boehner makes a lot of money off Obamacare and other investments in the medical industry, thanks to his privileged position in Congress.

By Catholic Online (NEWS CONSORTIUM)

Charlotte Ivancic, Health Policy Advisor to Speaker John Boehner (R-Ohio), is leaving his office to work for a lobbying firm. Ivancic is the older sister of Cate Dyer, the CEO of StemExpress. Dyer was caught discussing the sale of aborted children on video by the ... continue reading


When it comes to illegal immigration, EVERYBODY WINS! Except you, of course you lose Watch

Image of Attitude is everything.

By David Drudge, Catholic Online (NEWS CONSORTIUM)

Americans tend to agree we need some kind of immigration reform, but they can't agree on how bad the problem is, or even what that reform should look like. Here is a story that will shock you into thinking harder about the problem. LOS ANGELES, CA (Catholic Online) - ... continue reading


It has happened before: President Bill Clinton PARDONED former CIA Director for home computer Classified Document mess Watch

Image of In truth, Hillary Clinton's current controversy over keeping sensitive, classified information on home computers had its basis in which her husband, former president Bill Clinton pardoned former CIA director John Deutch . who likewise kept classified material on unsecured, private computers.

By Catholic Online (NEWS CONSORTIUM)

In truth, Hillary Clinton's current controversy over keeping sensitive, classified information on home computers had its basis in which her husband, former president Bill Clinton pardoned former CIA director John Deutch who likewise kept classified material on ... continue reading


Federal judge states Hillary Clinton's private emails violated policy Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

"We wouldn't be here today if this employee had followed government policy," U.S. District Judge Emmet Sullivan, in reference to Hillary Clinton's recent email fracas, said. Controversy continues to swell over Clinton's email. Some argue that she violated government ... continue reading


POLL: Majority of Republican voters think Donald Trump is a likely presidential candidate Watch

Image of According to a recent Rasmussen Reports poll, 57 percent of all registered Republican voters say Donald Trump will likely be on the presidential ticket next year.

By Catholic Online (NEWS CONSORTIUM)

Republican presidential candidate Donald Trump has said many outrageous things that have deftly expressed the American public's dissatisfaction with domestic policy. There are still many people who think it is all grandstanding on Trump's part, but according to a ... continue reading


'I'd say 'ISIS wants to get you'': Presidential candidate Donald Trump says he will warn Pope Francis that ISIS is out to get him Watch

Image of Donald Trump says

By Catholic Online (NEWS CONSORTIUM)

Republican presidential candidate Donald Trump in his typical style made quite a few jaws drop in an interview on CNN this week. Reporter Chris Cuomo asked the billionaire what he would say to Pope Francis come his visit to the U.S. in September. In a roundabout way, ... continue reading


NEW EMAIL SCANDAL: Thousands of emails State Department said didn't exist 'magically' appear Watch

Image of The State Department has turned up a massive cache of Reines' emails. Philippe Reines rose to the rank of Deputy Assistant Secretary of State while Clinton was at the helm.

By Catholic Online (NEWS CONSORTIUM)

Democratic presidential candidate Hillary Clinton has yet another email scandal in the wings. Gossip Web site Gawker requested emails from Clinton's previous media handler Philippe Reines under the Freedom of Information Act in 2013. The State Department said that they ... 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, Jeremiah 1:17-19
17 'As for you, prepare yourself for action. Stand up ... Read More

Psalm, Psalms 71:1-2, 3-4, 5-6, 15, 17
1 In you, Yahweh, I take refuge, I shall never be put ... Read More

Saint of the Day

Saint of the Day for August 29th, 2015 Image

St. Sabina
August 29: St. Sabina's feast day is August 29th. We know St. Sabina only ... 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