So, why budget deficits and national debt?

[Woodznutz]

Deficits and the debt are hung around the neck of the president and party in power. However, neither are entirely guilty of this. America hemorrhages a $Trillion per year just through the trade deficit, drugs, and remittances. This must be backfilled by borrowing the shortfall which increases the debt. Each administration must borrow a $Trillion each year, more or less, to keep up with needed expenditures. Raising taxes, besides not being enough to cover the borrowing, is political suicide. The patient, the economy, is on perpetual life support but gets closer to death each day. Let's hope no one pulls the plug.

 

[IM2]

Racial and ethnic inequality has cost US economy $51 trillion since 1990​

https://www.weforum.org/agenda/2021/09/racial-and-ethnic-inequality-has-cost-us-economy-51-trillion-since-1990/

This is the cause.

 

[MisterBeale]

Racial and ethnic inequality has cost US economy $51 trillion since 1990​

https://www.weforum.org/agenda/2021/09/racial-and-ethnic-inequality-has-cost-us-economy-51-trillion-since-1990/

This is the cause.

Nah, I'm pretty sure it was the deficit spending.

 

[MisterBeale]

RFK Jr. pays lip service to the debt while pushing policies that would increase it

It's good to hear a candidate actually talk about our spending problem. But his campaign promises would exacerbate it.

reason.com

Is RFK Jr. Really as Pro-Liberty as He Claims?​

Jul 30, 2024

 

[Woodznutz]

It gets worse. More immigrants, more remittances. Kamala believes that these remittances will bolster the economy of those countries so they will stop emigrating to America. The problem is that once they're here they don't leave but continue send U.S. dollars out of the country.

 

[Toddsterpatriot]

Deficits and the debt are hung around the neck of the president and party in power. However, neither are entirely guilty of this. America hemorrhages a $Trillion per year just through the trade deficit, drugs, and remittances. This must be backfilled by borrowing the shortfall which increases the debt. Each administration must borrow a $Trillion each year, more or less, to keep up with needed expenditures. Raising taxes, besides not being enough to cover the borrowing, is political suicide. The patient, the economy, is on perpetual life support but gets closer to death each day. Let's hope no one pulls the plug.

If I buy a 6-pack of German beer, the government needs to increase the debt?

 

[Woodznutz]

If I buy a 6-pack of German beer, the government needs to increase the debt?

Afraid so.
In 2021, the U.S. exports to Germany were $65.2 billion, a 13.5% ($7.7 billion) increase from 2020; the U.S. imports from Germany were $135.2 billion, a 17.5% ($20.2 billion) increase; and the trade deficit with Germany was $70.1 billion, a 21.5% ($12.4 billion) increase.

 

[Toddsterpatriot]

Afraid so.
In 2021, the U.S. exports to Germany were $65.2 billion, a 13.5% ($7.7 billion) increase from 2020; the U.S. imports from Germany were $135.2 billion, a 17.5% ($20.2 billion) increase; and the trade deficit with Germany was $70.1 billion, a 21.5% ($12.4 billion) increase.

I paid cash for my beer, why does it add to the debt?

 

[Woodznutz]

I paid cash for my beer, why does it add to the debt?

That cash eventually made its way to Germany, never to return.

 

[Harpy Eagle]

That cash eventually made its way to Germany, never to return.

but it is not the Govt's cash. So it has nothing to do with Govt debt

 

[Toddsterpatriot]

That cash eventually made its way to Germany, never to return.

Right. No debt involved. Not even a little.
If they want to send me beer for pieces of paper, I'm good with that.

 

[Woodznutz]

but it is not the Govt's cash. So it has nothing to do with Govt debt

If I thought you were serious, I'd respond to this.

 

[Harpy Eagle]

If I thought you were serious, I'd respond to this.

I am 100% serious.

If I buy beer made in Japan I am giving my money to the people here in the US that are then using it to pay their employees who then use it to pay their bills.

It does not harm to the Govt debt for me to buy something not made in the US

 

[Woodznutz]

Right. No debt involved. Not even a little.
If they want to send me beer for pieces of paper, I'm good with that.

Your pieces of paper went to the store where you bought the beer. From there they likely went to a bank where they were converted to numbers in the store's business account. The import costs o the beer were likely paid weeks or months earlier.

 

[Woodznutz]

I am 100% serious.

If I buy beer made in Japan I am giving my money to the people here in the US that are then using it to pay their employees who then use it to pay their bills.

It does not harm to the Govt debt for me to buy something not made in the US

It does if there is a trade deficit with that country. Your transaction was only the last in a series involving the product that goes back to the transaction with the exporting country. In other words, the damage had already been done long before you bought the product. You just put the last nail in the coffin.

 

[Harpy Eagle]

It does if there is a trade deficit with that country. Your transaction was only the last in a series involving the product that goes back to the import duty and other costs paid by the importer.

The US Govt does not have a trade deficit, we the people do. It is we the people that buy more stuff from other countries than we sell to them.

 

[Toddsterpatriot]

Your pieces of paper went to the store where you bought the beer. From there they likely went to a bank where they were converted to numbers in the store's business account. The import costs o the beer were likely paid weeks or months earlier.

And still no increase in government debt.

 

[Woodznutz]

The US Govt does not have a trade deficit, we the people do. It is we the people that buy more stuff from other countries than we sell to them.

So why does the government try to make up for the hemorrhage of money by borrowing and printing money.

 

[Woodznutz]

And still no increase in government debt.

Government debt increases by about a $Trillion per year because of 'consumer spending' on imports, and remittances.

 

[Toddsterpatriot]

So why does the government try to make up for the hemorrhage of money by borrowing and printing money.

Why does the government have to make up for the money I spent on German beer?