Is the National Debt Really Too Big?

[emptystep]

Watched at video from an interview with Boehner on NBC last Friday. I think this pretty much tells the Republican concern for our economy.

Right at the end of the video:
Boehner, "Listen, I've been around here for 22 years and I have watched presidents from both parties I have watched leaders from both parties kick this can down the road, kick this can down the road and kick this can down the road. We're out of road to kick the can down. We have a long term spending problem that needs to be addressed. I've spent the last two plus years trying to get this town to address this problem and it is going to be addressed." (Would someone please include transcripts with interviews. I hate dictation.)

That is just wonderful. 19 1/2 years after watching the can get kicked down the road BOEHNER IS READY TO ACT! He has seen the light and hears his call to duty, either that or his rich backers for the first time actually think someone might be on to their little 'rob the country blind scheme' they have been running for the last 22+ years and have called up their Republican minions to defend them.

Don't worry master, we will save you.

[Looking for an image you won't believe where I found this. ]Morning Briefing: July 28, 2011 | ThinkProgress


Clip entitled, "We've run out of room to kick the can down."
Boehner: We?ve run out of road to kick the can down - Video on NBCNews.com

 

[C_Clayton_Jones]

Which basically comes down to this:

Our Debt Is Getting More Affordable

The affordability of our national debt is an issue that gets little attention. Fortunately, the Federal Reserve of St. Louis keeps track of how well the economy is handling our debt. It does so in the form of a chart that measures the percent of GDP devoted to paying interest on the nation’s debt. What that chart says is illuminating. According to the Fed, the percent of our nation’s GDP devoted to paying interest on the debt has fallen to its lowest level since 1973.

Presently, we spend roughly 1.4 percent of GDP to pay the interest on what the Federal government has borrowed. Since 1940, the largest share of GDP devoted to pay the interest on our debt was in 1990, when the U.S. spent roughly 3.25 percent of GDP on interest payments.

The share of GDP going to pay interest on the debt began falling in 1994. And, with the exception of the period of the Great Recession, has continued falling ever since. My guess is that if America’s credit rating was measured the same way consumers are measured when they finance the purchase of a car, we would get the car.

Of course, interest payments on our debt fell sharply because interest rates came down as a result of actions by the Federal Reserve to overcome the recession. But that’s not the only reason. The long-term reason our debt became more affordable is that the country has been growing steadily since the mid-1990s, except for the period immediately following the financial crisis. These two factors – growth and lower interest rates -- pushed down the country’s interest payments, as a percent of GDP, to levels not seen since Gerald Ford was in the White House.
Is the National Debt Really Too Big? | The Exchange - Yahoo! Finance

In other words..the debt is manageable and can be shrunk without doing crazy, economy killing cuts.

Clinton proved it.

Correct, we need to get the economy on stable ground and Americans back to work, that needs to be our priority. Once we have realized sustained, healthy economic growth and low unemployment, then we can take steps to reduce the debt.

 

[Dorkazoid_Jones]

YOU "In other words..the debt is manageable and can be shrunk without doing crazy, economy killing cuts."

ME: Actually wild govt spending is what kills the economy. Someone is eventually going to have to pay for this huge debt. Who do you think that will be?? It could be citizens thru higher income taxes. With higher income taxes takes money out of consumers pockets who then spend less, thus SLOWING DOWN the economy. The other way to raise taxes is thru higher corporate taxes. If you raise business taxes, costs go up and hiring goes down. How is that good for the economy? Answer -- it's not.

Please stop saying raising taxes doesn't hurt the economy. That makes no sense. As far as the economy doing well under Clinton, actually it was the Republican's historic win in the 1994 elections that forced him to try and shrink govt. That's why even though he raised taxes, the markets were positive about the economy because they saw the debt getting under control. So for you to point out Clinton undermines your own point. Markets want govt spending reduced so it can stop being taken out of the business world.

 

[emptystep]

YOU "In other words..the debt is manageable and can be shrunk without doing crazy, economy killing cuts."

ME: Actually wild govt spending is what kills the economy. Someone is eventually going to have to pay for this huge debt. Who do you think that will be?? It could be citizens thru higher income taxes. With higher income taxes takes money out of consumers pockets who then spend less, thus SLOWING DOWN the economy. The other way to raise taxes is thru higher corporate taxes. If you raise business taxes, costs go up and hiring goes down. How is that good for the economy? Answer -- it's not.

Please stop saying raising taxes doesn't hurt the economy. That makes no sense. As far as the economy doing well under Clinton, actually it was the Republican's historic win in the 1994 elections that forced him to try and shrink govt. That's why even though he raised taxes, the markets were positive about the economy because they saw the debt getting under control. So for you to point out Clinton undermines your own point. Markets want govt spending reduced so it can stop being taken out of the business world.

Everyone in the family has run up the family credit card (to be nice about it). Stop driving to work so you can use the gas money to pay the credit card bill at the end of the month.

 

[Dorkazoid_Jones]

YOU: The sequester is not a fake issue and neither is the deficit. If the Republicans chose ideology over country once what is to say they will not continue to do so.

ME: So if the Republicans don't want the country to go the way of Greece thats' ideological?? So you want the country to go broke??

 

[emptystep]

YOU: Write in silly sentences.

ME: Thinks you write in silly sentences.

 

[emptystep]

 

[Dorkazoid_Jones]

In other words..the debt is manageable and can be shrunk without doing crazy, economy killing cuts.

Clinton proved it.

too stupid and completely liberal of course!!. Debt was nothing under Clinton; now it is $150,000 per family. Its just like having another mortgage and it cuts down every families standard of living by exactly what another mortgage would.

Republican capitalism made us all rich, and then liberals stole
the money!!

Maybe you're psychotic and not simply an immature know-it-all? Capitalism makes some rich - not all - and usually because they have exploited someone or something. Hard working people rarely become rich unless on the backs of other's labor. Now, that's not to suggest capitalism is evil, it's simply a statement of facts. However, some capitalists are evil. Have you done any research into Bain and Co.?

YOU: "Capitalism makes some rich - not all - and usually because they have exploited someone or something."

ME: Capitalism usually exploits people? Aren't we living in a free society? Who is sticking a gun to your head forcing you to buy something?? Capitalism is providing goods and services to fulfill someone's wants. How is that exploitation?? If you mean that someone makes a profit, then yes somebody makes a profit? So what? OH MY GAWD SOMEBODY MADE A PROFIT!! Head for the hills it's not safe for you here!!!!!!!!!!!!

 

[emptystep]

too stupid and completely liberal of course!!. Debt was nothing under Clinton; now it is $150,000 per family. Its just like having another mortgage and it cuts down every families standard of living by exactly what another mortgage would.

Republican capitalism made us all rich, and then liberals stole
the money!!

Maybe you're psychotic and not simply an immature know-it-all? Capitalism makes some rich - not all - and usually because they have exploited someone or something. Hard working people rarely become rich unless on the backs of other's labor. Now, that's not to suggest capitalism is evil, it's simply a statement of facts. However, some capitalists are evil. Have you done any research into Bain and Co.?

YOU: "Capitalism makes some rich - not all - and usually because they have exploited someone or something."

ME: Capitalism usually exploits people? Aren't we living in a free society? Who is sticking a gun to your head forcing you to buy something?? Capitalism is providing goods and services to fulfill someone's wants. How is that exploitation?? If you mean that someone makes a profit, then yes somebody makes a profit? So what? OH MY GAWD SOMEBODY MADE A PROFIT!! Head for the hills it's not safe for you here!!!!!!!!!!!!

Work for the man or starve to death. FREEDOM!!! When you do make a little money you will pay taxes which will benefit those who provide FREEDOM the most.

Thank yaz master. Me be most happy yuz don't beat me this mornin'.

 

[boedicca]

Which basically comes down to this:

Our Debt Is Getting More Affordable

The affordability of our national debt is an issue that gets little attention. Fortunately, the Federal Reserve of St. Louis keeps track of how well the economy is handling our debt. It does so in the form of a chart that measures the percent of GDP devoted to paying interest on the nation’s debt. What that chart says is illuminating. According to the Fed, the percent of our nation’s GDP devoted to paying interest on the debt has fallen to its lowest level since 1973.

Presently, we spend roughly 1.4 percent of GDP to pay the interest on what the Federal government has borrowed. Since 1940, the largest share of GDP devoted to pay the interest on our debt was in 1990, when the U.S. spent roughly 3.25 percent of GDP on interest payments.

The share of GDP going to pay interest on the debt began falling in 1994. And, with the exception of the period of the Great Recession, has continued falling ever since. My guess is that if America’s credit rating was measured the same way consumers are measured when they finance the purchase of a car, we would get the car.

Of course, interest payments on our debt fell sharply because interest rates came down as a result of actions by the Federal Reserve to overcome the recession. But that’s not the only reason. The long-term reason our debt became more affordable is that the country has been growing steadily since the mid-1990s, except for the period immediately following the financial crisis. These two factors – growth and lower interest rates -- pushed down the country’s interest payments, as a percent of GDP, to levels not seen since Gerald Ford was in the White House.
Is the National Debt Really Too Big? | The Exchange - Yahoo! Finance

In other words..the debt is manageable and can be shrunk without doing crazy, economy killing cuts.

Clinton proved it.

Wow. What a bunch of apologist pablum.

Here's why you and the author are Galactically Ignorant: the "official" debt grossly understates the true liability position of the government.

For a truer picture of how totally fluxored our economy is, try reading the 2012 Financial Report of the United States, which uses proper GAAP accounting. The unfunded liabilities dwarf the debt.

Current Report: Financial Report of the United States: Publications & Guidance: Financial Management Service

 

[SteadyMercury]

Work for the man or starve to death.

What silly hyperbole. Trading your labor/skills/expertise for money is hardly slavery or exploitation.

 

[emptystep]

Work for the man or starve to death.

What silly hyperbole. Trading your labor/skills/expertise for money is hardly slavery or exploitation.

I didn't have money for college when I got out of high school so I join the military. After four years I got out and went to community college, not free education, community college. I paid some of that with my GI bill, some of that with student loans, interest bearing student loans, and some with a part time job. With that part time job I worked as security guard. The companies paid the office, the office park paid the security company, the security company paid me, about minimum wage. After community college and one of the best schools in the country I graduated, loaded down with debt. I went to work for a defense contractor. I took the initiative and started a skunk works project that turned out to net the company a $1 million dollar advance. I got a huge raise, because I demanded it, I went from $44k to $52k. I left the company. A polite good-bye and that was it. I got a job at a start-up. Made about $55k. Millions $ flying all over the place. I worked 60 hour weeks. Company went belly up. What did I get? Well, I guess when one accepts risk there is a possible downside. Interviewed at a financial company. I had something lined up so I said, 'no thanks'. They said, "Name a number." I said $68. They said $63k plus a $5k and I had my next job. Times were good all around. So good the CEO had his personal guitar collect displayed in the Museum of Fine Arts Boston. Bottom fell out. I was one of the first to go because I was one of the most expensive for my level. Guess it would have happened anyway. I was training my replacement from India anyway. Being the first wave out the door I got a generous 6 month/50% package.

I figure I did about as good as anyone in my 'class' during the technology revolution. So what did I get after 5 and a half years? About $308k, about $25k match in 401k, and some happy memories. How much value did I add to the 'job creators'? No, idea. Did I pay 'my fair share' in taxes? Damn right I did.

If this is 'capitalism' where do I get off this crazy train?

 

[EdwardBaiamonte]

Work for the man or starve to death.

What silly hyperbole. Trading your labor/skills/expertise for money is hardly slavery or exploitation.

I didn't have money for college when I got out of high school so I join the military. After four years I got out and went to community college, not free education, community college. I paid some of that with my GI bill, some of that with student loans, interest bearing student loans, and some with a part time job. With that part time job I worked as security guard. The companies paid the office, the office park paid the security company, the security company paid me, about minimum wage. After community college and one of the best schools in the country I graduated, loaded down with debt. I went to work for a defense contractor. I took the initiative and started a skunk works project that turned out to net the company a $1 million dollar advance. I got a huge raise, because I demanded it, I went from $44k to $52k. I left the company. A polite good-bye and that was it. I got a job at a start-up. Made about $55k. Millions $ flying all over the place. I worked 60 hour weeks. Company went belly up. What did I get? Well, I guess when one accepts risk there is a possible downside. Interviewed at a financial company. I had something lined up so I said, 'no thanks'. They said, "Name a number." I said $68. They said $63k plus a $5k and I had my next job. Times were good all around. So good the CEO had his personal guitar collect displayed in the Museum of Fine Arts Boston. Bottom fell out. I was one of the first to go because I was one of the most expensive for my level. Guess it would have happened anyway. I was training my replacement from India anyway. Being the first wave out the door I got a generous 6 month/50% package.

I figure I did about as good as anyone in my 'class' during the technology revolution. So what did I get after 5 and a half years? About $308k, about $25k match in 401k, and some happy memories. How much value did I add to the 'job creators'? No, idea. Did I pay 'my fair share' in taxes? Damn right I did.

If this is 'capitalism' where do I get off this crazy train?

Republican capitalism is very dynamic indeed and only growing more so.

 

[SteadyMercury]

(a long story)

We very similar, I went into USAF for GI Bill.

I figure I did about as good as anyone in my 'class' during the technology revolution.

This is where you go off the rails. You are taking your own personal experience and applying it across a wide swath, assuming nobody did better.

If this is 'capitalism' where do I get off this crazy train?

That is capitalism, but one man's experience in being laid off isn't the only version. I've been steady employed since leaving the military and make well into six figures as a software developer. My wife was raised by single parent mom who was a waitress, she took out student loans to get thru college then law school, we paid off the student loans, paid off the house, and are on track to retire in our 40s. The capitalism train has been a nice ride for us.

Best of luck to you.

 

[Rozman]

Obama is President so it's no big deal...

 

[EdwardBaiamonte]

The capitalism train has been a nice ride for us.

Best of luck to you.

and its made Americans in general the richest people in human history, and thats with a lot of soviet liberal interference!! Imagine how rich we'd be without the liberal drag on the economy.