I read this in the news today. "U.S. Treasury Secretary Timothy Geithner formally requested that Congress raise the $12.1 trillion statutory debt limit on Friday, saying that it could be breached as early as mid-October. 'It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations,' Geithner said in a letter to Senate Majority Leader Harry Reid that was obtained by Reuters."
This means that our nation is going so much in debt that is needs to increase its credit limit. The current government policies and level of spending are helping to bankrupt our country. This will not really matter to the average person now, but in around decade we will start to see the economic consequences of this reckless spending--eventually we will have to pay for this debt. Hopefully it will be similar to the situation in California where the state government just cuts a lot of their programs, but the national government is taking over a lot of the nation's economy. Our economic fate is tied to how well the national government manages our resources that it is taking increasing more of. More people are--myself included--and will become more dependent on the government by it taking over the health care, the auto industry, the banking industry, and more to come. One out of every 6 dollars Americans receive as income come for the government: "Government-funded social welfare benefits, including Social Security, food stamps, unemployment insurance and health care, accounted for 16.2 percent of personal income in the first quarter of 2009, the highest percentage since the federal government began compiling records, according to USA Today." This figure is due to the six million Americans receiving unemployment insurance and hopefully this figure is temporary.
The economies of the world are being build on a foundation of debt. The degree of the problems from this level of debt is yet to be seen; but if one compares the current situation to similar ones in history, it does not look good.
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Racking up debt. Hey it's free money. We'll let Patch pay for it.
ReplyDeleteI think this is the behavior of generations who have known nothing but relatively easy living when faced with a belt-tightening situation.
RTP hopes that someday, a majority of voters will wake up and stop this selfishness.
That is an amazing statistic. Maybe I shouldn't even go to school. I learn everything on this blog!
ReplyDeleteGovernment "help" to business is just as disastrous as government persecution... the only way a government can be of service to national prosperity is by keeping its hands off.-Ayn Rand
ReplyDeleteWe already know how to have a booming economy--reduce taxes and decrease the size of government. History and reality has shown this to be true, but the statist believe that they know what is best for us dumb masses; so they need to take our money through taxes and spend it as they see fit. If a free people are willing to hand over their freedom in exchange for a little security, then we deserve what is coming our way.
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