Friday, December 21, 2007

Why are we writing checks our grandchildren can't cash?

With the amount of money we've been spending, you'd think we'd have a little more to show for it. Better roads, schools, healthcare, something. Because right now, our national debt is approaching $9 TRILLION dollars. That's a lot of zeroes and it sure as hell is a lot of interest — somewhere in the neighborhood of $400+ billion annually to be exact.

Since George W. Bush has been in office, this shared tab of ours has gone up a staggering $3 trillion (for perspective, the ENTIRE debt never reached $4 trillion when his old man was in charge.) Why is this? Because we've had to pay for little line items like the war in Iraq and tax cuts for the wealthiest 1% of Americans. What gets me though is that of all the issues on the table, all the flubs this guy's made, this one seems to get the least amount of attention. People, he turned a budget surplus into a budget sinkhole. If this was a business, the CEO would have been shown the door a long time ago. And that rapidly accruing interest I just mentioned? It's not being paid to banks in this country. It's going to foreign lenders, like China, Japan and Saudi Arabia.

Contrary to popular belief, this isn't Monopoly money. It's cold, hard cash and the vig is running. Yet we don't seem to give a second thought to what this might mean for future generations. They may very well wake up one day to the realization that they don't own their own country anymore. We'll have gone from the richest nation in the world back to being somebody else’s colony.

So what do we do? Simple. It starts with sacrifice. We cut out programs we don't need. We stop spending money we don't have. We don't back tax cuts we can't afford. We quit putting billions into pork barrel projects. And we start slowly paying down that debt. We've done it before. We can do it again.


Jen said...

Do some research on the Bilderberg Group, the Trilateral Commission and the Council on Foreign Relations and I think you'll find the answer to why we're so deep in debt.

Cameron Beck said...

To call what we had a "surplus" is inaccurate. We had a surplus only if you include Social Security money, which is a self-contained debt instrument.

The change in the economy and increased spending had as much if not more to do with the decline in tax receipts as the tax cuts but that decline has since been erased, even when discounted.

Also, in spite of your claim, the tax cuts went to everyone, not just the wealthiest 1%, who now are bearing a greater burden of the national tax liability than they did before for the privilege of their tax cut.

I understand your indignation, but to lay the blame all on one person is irrational, especially when you consider the government bailout you requested during your tenure as CEO of a major corporation.

George said...

Google Ron Paul he has a plan and real solutions

Mr. Noah said...

You backed Bush in 2000, as did a lot of the business community. If the business community abandons the Republican party, maybe the flagrant abuse of government finances will stop.

K said...

There was a surplus whether or not you include the SS money. Here is an article from Fact Check that breaks it down.

As for the tax cuts, you are right in that they did go to everyone. However I believe the following figures will shed some light as to who benefited the most. From 2001 to 2005 the top 1% received 19.8% of the total benefits. By comparison the lowest 20% received only 1.9% of the benefits. From 2006 to 2010 the top 1% will receive 44% of the total benefits where the bottom 1% will receive only 1.4%. For the entire time span of the tax cuts (2001 - 2010) the top 1% will receive 36.1% of the total benefits. This is almost double what any other group will receive. So you are correct, there were tax cuts for everyone. However the tax cuts were definitely not given fairly or to the people who need the tax relief the most.

sb said...

I have been in business all my 53 years...starting with growing up in our family business. The main reason for the gap, that I can see, is that our kids are not taught our own system of economics. The inequality begins when we are not taught the simple choice of operating from the correct side of the pre-tax / after-tax equation. Sure, there is a gap. However, it is better served by educating our youth and releasing the bonds of over-regulation and creating a real tax policy that encourages innovation instead of taxing productivity. Your link to Laura D'Andrea Tyson's article is misleading. She is well known for supporting heavy Gov't involvement with all facets of business. Instead, we should be teaching our children our own system of economics, the true history of this great country, incentivizing assimilation for new Legal immigrants, drastically cutting back on Gov't spending as well as incentivizing areas such as new manufacturing techniques, energy policy, personal savings, etc. The list goes on. Personal freedom and personal responsibility always cause capital a rise to its highest efficiency peak when our people are properly educated and our leaders are moral and government is the least involved.

I look at the new crop of graduates coming from universities today...they don't know how to work, don't know the value of profit to a business and don't know a thing about hard work and service. However, they do believe they know everything about Man-Made Global Warming (a huge fraud), Gay rights, and why we should have Gov't health care. When this generation's heroes are entertainers who can't even manage their own lives, we are in serious trouble.

Charles said...

Cameron Beck is right when he stated that there was no surplus without SS. I still have the news paper article that states the same.We can never get rid of pork as long as the President does not have line item veto and term limits on Congress

Phil Wirth said...

Lee Iacocca,

Yours of December 21,2007:
"People, he turned a budget surplus into a budget sinkhole. If this was a business, the CEO would have been shown the door a long time ago."

Mine of December 18,2008:
At this date in time, I can make some interesting comment:

Well he "Bush" must have taught the Big Three CEOs well.

On the other hand, they may have taught Bush well.

This makes me extremely sad, but the now Little Three built a sinkhole to China also.

With all due respect, It took Bush 8 years to do it, and Clinton did not leave him a bed of roses, and there were a couple of wars in there that he is now, arguably wining. In addition, somebody knocked down a few buildings etc etc.

However, it took the Big Three 10 to 20 years to dig their hole, and it looks like they still didn’t see it coming. I guess if your making millions of dollars failing; who cares. Now that really makes me angry, and I know it does you too. You would have fired them years ago!!

I think that Bush made his share of mistakes, lord knows how many I would have made, but I think he will be in the history books, 40 years hence, for turning a treacherous, evil enemy into an ally in the Middle East. Also, for not just turning the other cheek on the terrorist, but by putting everything he could into fighting an impossible war against an impossible enemy. How do you deal with an enemy that comes at you on mules, and then blows up the World Trade Center? Time will tell how well Obama will do. God help him to do well.

Lee I think you are the greatest, but I thought I would put a little different light on your subject.

Lee we really need you to help this country with the insurmountable problem that we have now. From the tone of your message, I’m sure you do not want to help President Bush. He may not know it, or he may, but you are the only way out of this mess. Just your name could help it. He was on Fox today doing a very frank interview, and it is the first time I have seen him speak from his heart, and he was very distraught. He was speaking about the Auto Industry’s dilemma. He looked helpless and he said he did not want to leave Mr. Obama with this problem.

By the way, I am a Diabetic, and I am doing quite well with it. I am also 77 years old, and will be 78 in two weeks; didn’t think of that. I am Just an American that is trying to help our country in a way that I know will help. This whole thing is extremely frustrating to me!

Please try to help. Please call me. Take care,

Phil Wirth
949-680-7713 or