Cammmpbell
Senior Member
- Sep 13, 2011
- 5,095
- 519
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Federal Budget Spending, Deficits, the National Debt, and Social Security
"Suppose you spend more money this month than your income. This situation is called a "budget deficit". So you borrow (ie; use your credit card). The amount you borrowed (and now owe) is called your debt. You have to pay interest on your debt. If next month you spend more than your income, another deficit, you must borrow some more, and you'll still have to pay the interest on your debt (now larger). If you have a deficit every month, you keep borrowing and your debt grows. Soon the interest payment on your loan is bigger than any other item in your budget. Eventually, all you can do is pay the interest payment, and you don't have any money left over for anything else. This situation is known as bankruptcy".
Reagan and Bush 41 quadrupled the national debt after cutting rates for their "good buddies."
Clinton raised those taxes, balanced the budget and actually ran surpluses with the entire debt on course to be paid off by this year.
George Bush cut taxes(twice), ran two wars off budget and doubled the national debt again. When Obama came in the interest on the Reagan/Bushes debt was nearly half a trillion dollars a year. Right now the Republicans are fighting any effort to take the rates back to the same they were during the Clinton years. You would think they might catch on!
...................................Annual Interest/National Debt..................................
"Suppose you spend more money this month than your income. This situation is called a "budget deficit". So you borrow (ie; use your credit card). The amount you borrowed (and now owe) is called your debt. You have to pay interest on your debt. If next month you spend more than your income, another deficit, you must borrow some more, and you'll still have to pay the interest on your debt (now larger). If you have a deficit every month, you keep borrowing and your debt grows. Soon the interest payment on your loan is bigger than any other item in your budget. Eventually, all you can do is pay the interest payment, and you don't have any money left over for anything else. This situation is known as bankruptcy".
Reagan and Bush 41 quadrupled the national debt after cutting rates for their "good buddies."
Clinton raised those taxes, balanced the budget and actually ran surpluses with the entire debt on course to be paid off by this year.
George Bush cut taxes(twice), ran two wars off budget and doubled the national debt again. When Obama came in the interest on the Reagan/Bushes debt was nearly half a trillion dollars a year. Right now the Republicans are fighting any effort to take the rates back to the same they were during the Clinton years. You would think they might catch on!
...................................Annual Interest/National Debt..................................
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