Spend, spend, spend

The federal government through March collected a record $736.3 billion in individual income taxes, yet spent $599.7 billion more than it took in. What’s wrong with this picture?

The record tax collection was for the first six months of fiscal 2018 – from Oct. 1, 2017 through March 31, the Treasury says.

You would think, with the national debt climbing above $21 trillion, Congress would wake up to the fact that we are burying our grandchildren in debt. When will the members of that august body put the brakes on spending? At some point, the nation will be crushed by the burgeoning debt.

Debt has real consequences. For instance, as it increases, and government bonds compete with corporate bonds for investors’ money, interest rates are pushed up. If the government takes up a larger share of available capital, there is less for the private sector.

At some point all of this will come home to roost – and it will not be pretty.

If the debt balloons and is unsustainable, government will face hard, unpopular choices, including defaulting or enacting onerous austerity measures to pay the debt payments.

It would be far, far easier to responsibly deal with the problem now. Kicking it down the road, the current congressional strategy, will not work.

 

 

2 Responses to Spend, spend, spend

  1. Bill Hutchison April 12, 2018 at 10:50 am

    Able bodied citizens getting welfare, rather than paying down our national debt or repaying loans from the Social Security Trust Fund may be fixed by President Trump’s executive order requiring work applications for all folks receiving welfare who are capable of working.

    Reply
  2. angler021 April 13, 2018 at 2:18 pm

    It seems to me that we keep asking the wrong questions. Rather than wondering why our politicians don’t wake up to the problems they are creating, as though they don’t understand what they’re doing, maybe we should consider that it’s more likely that they know EXACTLY what they’re doing. In the case of the skyrocketing national debt, let’s assume they know what they’re doing and the consequences of spending more than we can afford, and the consequences to our children and grandchildren. Then we should ask ourselves, “Why are they deliberately trying to bankrupt America?” That type question might just finally reveal what type people we’re dealing with and what our response should be…before it’s too late.

    Reply

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