The Monster Deficit Is About To Eat Your Lunch
What matters with deficits is not so much the actual size of the deficit, but how much of the GDP (Gross National Product) it takes. With deficits, it is the PERCENTAGE of GCP that matters. Our present deficit is a country-eating monster.
This deficit is 13% of the GDP. The biggest previous deficits never reached more than 6%, not even during major wars or the Great Depression.
Would closing down all our wars help with the deficit? No. When deficits were used to finance previous wars, they were paid off soon after the war stopped. Actually, the cost of the current wars in Iraq and Afganistan are so small in comparison to the size of the national budget that stopping them completely would still leave our current deficit the biggest ever.
That's not all. Future (annual) deficits will be worse, because of the cost of our national debt (cumulative, or total.) Presently our national, accumulated debt, is $95 trillion, and slated to grow drastically and rapidly. Why? Because of promises already made to Social Security and Medicare/Medicaid, future deficits can only grow.
We're looking at soaring inflation, higher taxes and lower incomes for the forseeable future.
What to do? Save. Stop spending. Get out of the stock market. Do all you can to earn extra income. Grow some of your food. Make do with what you already own.
And stop voting for politicians who are not willing to cut spending, cut taxes, stop funding new programs, and cut funding for old programs. Stop voting for politicians who want the government to support so many people.
We're broke, folks.
This deficit is 13% of the GDP. The biggest previous deficits never reached more than 6%, not even during major wars or the Great Depression.
Would closing down all our wars help with the deficit? No. When deficits were used to finance previous wars, they were paid off soon after the war stopped. Actually, the cost of the current wars in Iraq and Afganistan are so small in comparison to the size of the national budget that stopping them completely would still leave our current deficit the biggest ever.
That's not all. Future (annual) deficits will be worse, because of the cost of our national debt (cumulative, or total.) Presently our national, accumulated debt, is $95 trillion, and slated to grow drastically and rapidly. Why? Because of promises already made to Social Security and Medicare/Medicaid, future deficits can only grow.
We're looking at soaring inflation, higher taxes and lower incomes for the forseeable future.
What to do? Save. Stop spending. Get out of the stock market. Do all you can to earn extra income. Grow some of your food. Make do with what you already own.
And stop voting for politicians who are not willing to cut spending, cut taxes, stop funding new programs, and cut funding for old programs. Stop voting for politicians who want the government to support so many people.
We're broke, folks.
posted by Old Neocon at 8:37 AM
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