According to an analysis by USA Today, American taxpayers “are on the hook for an extra $55,000 a household to cover rising federal commitments made just in the past year for retirement benefits, the national debt and other government promises.” Federal obligations now stand at a record $546,668 per household, quadruple what the average U.S. household owes for all mortgages, car loans, credit cards and other debt combined.
This debt is composed of medicare obligations, social security, Federal borrowing, civil service retirement obligations, military pensions, and miscellaneous other debts. And, we are not through adding to this debt load. With national health care in the works and continueing massive government spending, the debt burden will only grow. More and more tax receipts will have to go just to pay the interest on the debt.
Does anyone really think that we can grow the economy sufficiently to pay off this debt? Government borrowing will freeze out private investment and with anti-growth policies like cap and trade being anticipated and with greater government involvement in the economy, I do not look for vigorous economic growth to pull us out of this hole. We are much like a household that is borrowing on the credit card to pay the electric bill and each month we must borrow more just to keep the lights on. The difference is that in a household, eventually the credit card will max out. Unlike a household, government can print money. The only way we can pay our debts is with cheaper dollars. Does anyone doubt that massive inflation is not in our future?
Top Stories