Freewill
Platinum Member
- Oct 26, 2011
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In another thread this following quote, hyperbole removed by me, was posted. I would like to calmly discuss the validity of the following statement.
"What drives up the debt and the astronomical cost of government is the welfare state, subsidies, bailouts and entitlements, That includes foreign welfare."
For the discussion I found the following site with some plain English information:
Q&A: Everything You Need to Know About the National Debt - Fix The Debt
How big is the debt?
Currently, the national debt held by the public is over $13 trillion, which is around 74 percent of the country’s economy, as measured by Gross Domestic Product (GDP). The gross debt, which includes money owed to other parts of the federal government, is over $18 trillion, or roughly 102 percent of GDP.
Throughout history, the United States has normally maintained some amount of debt. However, with the exception of a brief period during and immediately after World War II, debt levels have never been as high as they are now. Without congressional action, debt levels will continue increasing.
Does the above information mean that the US in in debt to the tune of 176 percent of the US economy? WHOW.
What is driving our future debt path?
Many of the drivers of our past debt are nearing resolution—the wars are winding down and the economy is recovering. Unfortunately, our future debt will grow if nothing is done, due to a different set of factors. These include:
Population Aging: As the population grows older, spending on Social Security and Medicare will increase dramatically. Additionally, these older Americans will no longer be working and will pay fewer taxes, leading to lower revenues.
Rapid Health Care Cost Growth: Federal health spending is currently equal to 5.2 percent of the economy. In 25 years, it is projected to rise to approximately 8 percent.
Growing Interest Costs: As interest rates return to normal levels, the cost of interest payments on debt already borrowed will increase.
Insufficient Revenue: The historical amount of revenue collected is not sufficient to afford record-high levels of retirees, health care spending, and interest. Our debt problems are so large they cannot be solved by either spending cuts or revenue increases alone.
From the following site I obtained the charts that follow:
Federal Spending: Where Does the Money Go
"What drives up the debt and the astronomical cost of government is the welfare state, subsidies, bailouts and entitlements, That includes foreign welfare."
For the discussion I found the following site with some plain English information:
Q&A: Everything You Need to Know About the National Debt - Fix The Debt
How big is the debt?
Currently, the national debt held by the public is over $13 trillion, which is around 74 percent of the country’s economy, as measured by Gross Domestic Product (GDP). The gross debt, which includes money owed to other parts of the federal government, is over $18 trillion, or roughly 102 percent of GDP.
Throughout history, the United States has normally maintained some amount of debt. However, with the exception of a brief period during and immediately after World War II, debt levels have never been as high as they are now. Without congressional action, debt levels will continue increasing.
Does the above information mean that the US in in debt to the tune of 176 percent of the US economy? WHOW.
What is driving our future debt path?
Many of the drivers of our past debt are nearing resolution—the wars are winding down and the economy is recovering. Unfortunately, our future debt will grow if nothing is done, due to a different set of factors. These include:
Population Aging: As the population grows older, spending on Social Security and Medicare will increase dramatically. Additionally, these older Americans will no longer be working and will pay fewer taxes, leading to lower revenues.
Rapid Health Care Cost Growth: Federal health spending is currently equal to 5.2 percent of the economy. In 25 years, it is projected to rise to approximately 8 percent.
Growing Interest Costs: As interest rates return to normal levels, the cost of interest payments on debt already borrowed will increase.
Insufficient Revenue: The historical amount of revenue collected is not sufficient to afford record-high levels of retirees, health care spending, and interest. Our debt problems are so large they cannot be solved by either spending cuts or revenue increases alone.
From the following site I obtained the charts that follow:
Federal Spending: Where Does the Money Go
