Reducing the National Debt

Discussion in 'Politics' started by tenthertoo, Jan 10, 2012.

  1. tenthertoo
    Offline

    tenthertoo ...worst of all I'm DULL

    Joined:
    Dec 30, 2011
    Messages:
    221
    Thanks Received:
    19
    Trophy Points:
    51
    Location:
    Deep South
    Ratings:
    +19
    Trying to even get a handle on the magnitude of the ND is a real challenge. Most of us, I think, can't even get what $16,000,000,000,000 (did I get it right) really is.

    It's a number that defies comprehension.

    From here down all numbers are approximate.(and many probably wrong - remember I'm just a retired working stiff)

    The debt is NOW more than 100% of GDP. A number most said just a short time ago would put Greece into default. Many believe that the ND should be no more than 70% of GDP.

    Let's start there. 70% would be about $11 trillion. So let's look at what it would take to get there.

    Our current deficit is running 1.4 -1.5 trillion a year. To get the ND down to we'd have to generate an annual surplus of 100 billion a year for 50 years. That would require a turn around of 1.5 - 1.6 trillion a year.

    Of course the task is aggravated by several very significant issues.
    • Current interest of Fed notes is about 1/2 of 1 % - The average is about 5%. At that rate the interest would be 100 billion a year more that would have to be added to the 1.5 trillion turn around number (sheesh I'm getting out of breath)
    • Taking more than 2 trillion out of the economy would create a loss in federal revenue of (about) 200 billion?? - we'll have to add THAT to the turn around number
    • And many more I'm sure the fertile minds on the forum will add

    I got lost somewhere in the second paragraph so y'all help me out here!
     
    Last edited: Jan 10, 2012
  2. Steelplate
    Offline

    Steelplate Bluesman

    Joined:
    Apr 25, 2011
    Messages:
    7,773
    Thanks Received:
    931
    Trophy Points:
    48
    Location:
    Central PA
    Ratings:
    +932
    Increasing the tax base would be a great place to start. C'mon private sector... bring back the good paying jobs so currently unemployed people can start doing their part in lowering the National Debt.

    Oh.... that's right. They are allowed to profiteer.. I forgot.
     
    • Thank You! Thank You! x 2
  3. DiamondDave
    Offline

    DiamondDave Army Vet

    Joined:
    Jun 30, 2008
    Messages:
    18,169
    Thanks Received:
    2,812
    Trophy Points:
    183
    Location:
    MD, on the Potomac River
    Ratings:
    +2,816
    Yes increasing the tax base.. implementing the flat tax with zero exceptions, zero loopholes, and no salary floor

    BUT that is only a start... because we have a spending problem... we have to reduce the spending and the size of government DRASTICALLY for ANYTHING to work in debt reduction
     
  4. tenthertoo
    Offline

    tenthertoo ...worst of all I'm DULL

    Joined:
    Dec 30, 2011
    Messages:
    221
    Thanks Received:
    19
    Trophy Points:
    51
    Location:
    Deep South
    Ratings:
    +19
    That would require an increase in the GDP of 12 - 15 trillion a year for 50 years or about an increase in the GDP of 80 - 100% (if I figured it out right?) ROTSARUCK
     
    Last edited: Jan 10, 2012
  5. Steelplate
    Offline

    Steelplate Bluesman

    Joined:
    Apr 25, 2011
    Messages:
    7,773
    Thanks Received:
    931
    Trophy Points:
    48
    Location:
    Central PA
    Ratings:
    +932
    Oh... you want it to be paid back overnight? Wow... even a mortgage holder gets 30 years nowadays.
     
  6. Steelplate
    Offline

    Steelplate Bluesman

    Joined:
    Apr 25, 2011
    Messages:
    7,773
    Thanks Received:
    931
    Trophy Points:
    48
    Location:
    Central PA
    Ratings:
    +932
    Yep... the Conservative Mantra... Damned poor people... they need to pay up!
     
  7. Misty
    Offline

    Misty Gold Member

    Joined:
    Aug 11, 2009
    Messages:
    7,137
    Thanks Received:
    1,897
    Trophy Points:
    245
    Ratings:
    +3,308
    "On Sept. 18, 1789, the new secretary of the treasury, Alexander Hamilton, entered into negotiations for a temporary loan with the Bank of New York and the Bank of North America—the only two banks in the country at that time. The following February, the deal went through and the government borrowed $19,608.81. It was the start of the American national debt."

    Good luck getting rid of it. Lol
     
  8. merrill
    Offline

    merrill VIP Member

    Joined:
    Dec 27, 2011
    Messages:
    1,263
    Thanks Received:
    92
    Trophy Points:
    83
    Ratings:
    +92
    The debt is not a big deal depending on how the money is spent.

    Covering the cost of preferential tax breaks and wars for oil = tax dollar moneyholes

    Creating new USA industry that stays in the USA = investment in the USA.
     
    • Thank You! Thank You! x 2
  9. DontBeStupid
    Offline

    DontBeStupid Look it up!

    Joined:
    Jun 23, 2011
    Messages:
    4,463
    Thanks Received:
    422
    Trophy Points:
    48
    Location:
    Los Angeles, CA
    Ratings:
    +422
    There is no reason we need to pay down our national debt.
     
  10. tenthertoo
    Offline

    tenthertoo ...worst of all I'm DULL

    Joined:
    Dec 30, 2011
    Messages:
    221
    Thanks Received:
    19
    Trophy Points:
    51
    Location:
    Deep South
    Ratings:
    +19
    NO - no 50 years
     

Share This Page