Deficit Denial?

[jwoodie]

Are you concerned about never-ending trillion dollar deficits? If so, what can or should be done about them? Given our demographic trends, the current debates about taxes and spending reforms are almost laughably inadequate to address the enormity of our impending liabilities. In coming years, we may look back at a deficit of only a trillion dollars with nostalgic fondness.

So what are we to do, if anything? It seems to me that economic growth (jobs) can only take us so far, and rest will result in a massive (30-50%) reduction in our purchasing power. Any thoughts?

 

[PaulS1950]

The debt is so large that it is impossible to pay off, Right now it is at 16.4 trillion dollars and the ceiling has been, or shortly will be, raised to 20 trillion dollars.
If you pay a billion dollars a year (plus the interest) it would take a thousand years to pay back each trillion dollars. That means 16000 years and it is still not paid off.
If you pay 100 billion dollars each year (plus interest) then paying off 16 trillion dollars takes 160 years.
To pay off the national debt in a single presidential term would require paying 4 trillion dollars (plus interest) for each of the four years. The taxes collected last year were less than 3 trillion dollars. That includes Social Security taxes that are separate from income tax.

 

[Underhill]

The debt is so large that it is impossible to pay off, Right now it is at 16.4 trillion dollars and the ceiling has been, or shortly will be, raised to 20 trillion dollars.
If you pay a billion dollars a year (plus the interest) it would take a thousand years to pay back each trillion dollars. That means 16000 years and it is still not paid off.
If you pay 100 billion dollars each year (plus interest) then paying off 16 trillion dollars takes 160 years.
To pay off the national debt in a single presidential term would require paying 4 trillion dollars (plus interest) for each of the four years. The taxes collected last year were less than 3 trillion dollars. That includes Social Security taxes that are separate from income tax.

There is no way it would be paid off in a single term. That much is true.

But the solution to the debt is a relatively simple one. Stop running up more debt (that alone would mean big cuts and tax increases). Pay the interest for the next 20-30 years.

By then inflation (running at roughly 2-4% a year) would nibble away at it until 20 Trillion is worth more like 5 Trillion in todays dollars.

But it would mean being fiscally responsible for 20-30 years, by both parties. The odds on that happening make the lottery a good bet.

 

[Wonky Pundit]

Nobody with a financial background, either inside or outside government, actually wants the United States Treasury to pay off all its debt.

For one thing, having no debt would mean being completely unable to issue any type of government bond, which would not be at all good for anyone's economy. For another, a certain level of debt is inevitable when there has to be recovery from things like natural disasters.

That doesn't mean that the debt should be anywhere as high as it is, of course. Only that the focus has to be on managing it instead of paying it off.

 

[merrill]

big debt and super duper bailouts do not seem to bother Republicans, as long as they are in power.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

This GOP ENTITLEMENT - Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush.

This GOP ENTITLEMENT - Fully 81% of the national debt was created by just these three Republican Presidents.
Social Security Q&A | Dollars & Sense

 

[merrill]

What about it ...debt?

If it used properly debt is fine. Households and business people do it everyday.

To cover the cost of tax breaks,corporate welfare,weapons the military doesn't want and bailing out mismanaged financial industry and the auto industry then it is abused big time.

Creating new industry for the USA thus jobs, and rebuilding the interstate highway system is wise use of
borrowed money = investments in our country = new economic growth = new wealth for all.

 

[sparky]

Gargantuan and Growing: The US Debt Figure You've Probably Never Heard Of | InflationData.com

~S~

 

[edthecynic]

Are you concerned about never-ending trillion dollar deficits? If so, what can or should be done about them? Given our demographic trends, the current debates about taxes and spending reforms are almost laughably inadequate to address the enormity of our impending liabilities. In coming years, we may look back at a deficit of only a trillion dollars with nostalgic fondness.

So what are we to do, if anything? It seems to me that economic growth (jobs) can only take us so far, and rest will result in a massive (30-50%) reduction in our purchasing power. Any thoughts?

'I don't worry about the deficit. It's big enough to take care of itself.'
Ronald Reagan

 

[C_Clayton_Jones]

Deficit Denial?

It’s more like deficit prioritizing.

Jobs and the economy first, then the deficit.

 

[blackhawk]

Everyone knows what has to be done the problem is both the Democrats and the Republicans only want to do half of it. The Republicans just want to cut spending and the Democrats just want to raise taxes on the rich just doing one of these will never solve the problem.

 

[Rozman]

Liberals feel the government just doesn't spend enough now.
The only out of our debt problem is we need to spend more....

Go figure.

Not kidding folks...
Just find some video of that bearded ferret faced economist that the Libs love so much.
He will go on and on about how we need to spend more.

 

[SFC Ollie]

We have a spending problem.

Bush spent too Much and Obama has already outspent him.

It is time to reign it in.......The longer we wait the worse the belt tightening will have to be.......

I'm willing to give up 10% if the government would just cut every thing by the same 10 %....

I don't know if that would be enough but it would be a nice start......

 

[Toddsterpatriot]

big debt and super duper bailouts do not seem to bother Republicans, as long as they are in power.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

This GOP ENTITLEMENT - Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush.

This GOP ENTITLEMENT - Fully 81% of the national debt was created by just these three Republican Presidents.
Social Security Q&A | Dollars & Sense

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

That's an interesting claim. You have any proof?

 

[Rozman]

big debt and super duper bailouts do not seem to bother Republicans, as long as they are in power.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

This GOP ENTITLEMENT - Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush.

This GOP ENTITLEMENT - Fully 81% of the national debt was created by just these three Republican Presidents.
Social Security Q&A | Dollars & Sense

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

That's an interesting claim. You have any proof?

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

There really is no such thing as the Bush tax cut for the very wealthy.
All tax payers received a tax cut.The middle class as well.

The proof of this comes from Obama and the Dems themselves.
Just recently the Libs were bitching if the recent extension of the Bush tax cuts were to go away the Middle class would lose the benefit of .....you guessed it kiddies.
The Bush tax cut...

Have a good night.

 

[merrill]

big debt and super duper bailouts do not seem to bother Republicans, as long as they are in power.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

This GOP ENTITLEMENT - Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush.

This GOP ENTITLEMENT - Fully 81% of the national debt was created by just these three Republican Presidents.
Social Security Q&A | Dollars & Sense

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

That's an interesting claim. You have any proof?

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

There really is no such thing as the Bush tax cut for the very wealthy.
All tax payers received a tax cut.The middle class as well.

The proof of this comes from Obama and the Dems themselves.
Just recently the Libs were bitching if the recent extension of the Bush tax cuts were to go away the Middle class would lose the benefit of .....you guessed it kiddies.
The Bush tax cut...

Have a good night.

The upper 1% or whatever have been receiving tax breaks,tax loopholes and Cayman Island for going on 33 years. They owe the 99% a large refund.

 

[merrill]

big debt and super duper bailouts do not seem to bother Republicans, as long as they are in power.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

This GOP ENTITLEMENT - Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush.

This GOP ENTITLEMENT - Fully 81% of the national debt was created by just these three Republican Presidents.
Social Security Q&A | Dollars & Sense

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

That's an interesting claim. You have any proof?

From the source:

What impact would the conversion to private accounts have on the national debt?

The government would have to borrow an additional $4 trillion over the next 20 years to make up the money that would be drained out of the system by private accounts.

Former President Bush and Congress racked up an average $793 billion deficit each year Bush was in office.

Social Security privatization would raise the size of the government’s deficit by another $300 billion per year for the next 20 years. This does not seem to bother Republicans, as long as they are in power.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion. Over half of that amount had been created by Bush’s tax cuts for the very wealthy. Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush. Fully 81% of the national debt was created by just these three Republican Presidents.

Dollars and Sense

 

[SFC Ollie]

From what source?

 

[blackhawk]

big debt and super duper bailouts do not seem to bother Republicans, as long as they are in power.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

This GOP ENTITLEMENT - Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush.

This GOP ENTITLEMENT - Fully 81% of the national debt was created by just these three Republican Presidents.
Social Security Q&A | Dollars & Sense

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

That's an interesting claim. You have any proof?

Here is something people might find interesting note the source is not FOX or any other conservative leaning group.
National Debt has increased more under Obama than under Bush - Political Hotsheet - CBS News

 

[Toddsterpatriot]

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

That's an interesting claim. You have any proof?

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

There really is no such thing as the Bush tax cut for the very wealthy.
All tax payers received a tax cut.The middle class as well.

The proof of this comes from Obama and the Dems themselves.
Just recently the Libs were bitching if the recent extension of the Bush tax cuts were to go away the Middle class would lose the benefit of .....you guessed it kiddies.
The Bush tax cut...

Have a good night.

The upper 1% or whatever have been receiving tax breaks,tax loopholes and Cayman Island for going on 33 years. They owe the 99% a large refund.

They owe a refund for keeping more of their own money? LOL! You're funny.

 

[Toddsterpatriot]

big debt and super duper bailouts do not seem to bother Republicans, as long as they are in power.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

This GOP ENTITLEMENT - Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush.

This GOP ENTITLEMENT - Fully 81% of the national debt was created by just these three Republican Presidents.
Social Security Q&A | Dollars & Sense

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion:

This GOP ENTITLEMENT - Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

That's an interesting claim. You have any proof?

From the source:

What impact would the conversion to private accounts have on the national debt?

The government would have to borrow an additional $4 trillion over the next 20 years to make up the money that would be drained out of the system by private accounts.

Former President Bush and Congress racked up an average $793 billion deficit each year Bush was in office.

Social Security privatization would raise the size of the government’s deficit by another $300 billion per year for the next 20 years. This does not seem to bother Republicans, as long as they are in power.

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion. Over half of that amount had been created by Bush’s tax cuts for the very wealthy. Another 30% of the national debt had been created by the tax cuts for the wealthy under Presidents Reagan and George H.W. Bush. Fully 81% of the national debt was created by just these three Republican Presidents.

Dollars and Sense

In fact, by the time the second Bush left office, the national debt had grown to $12.1 trillion. Over half of that amount had been created by Bush’s tax cuts for the very wealthy.

Yes, I saw the silly claim, I was looking for proof.