National Debt / Federal Budget Deficits

The U.S. Congress

First, a couple of definitions. The national debt is the amount of money that the government owes to holders of treasury bonds, bills and other government debt instruments. An annual budget deficit occurs in any year that the government spends more than it collects in taxes. As a result of the policies of the current administration and the Congress (the Bush tax cuts and ever increasing spending) , the national debt has risen to $9.4 trillion from $5.7 trillion since George W. Bush first took the presidential oath of office in 2001. When President Bush and the Congress took office in 2001, they inherited a huge government surplus of about $230 billion. Since then (2001 through 2007), they have run up massive annual budget deficits each and every year; and are on track to run up an additional $410 billion deficit in 2008. In contrast, the previous administration achieved surpluses during its last four years and was even able to pay down the national debt by $355 billion over a three year period.

How does the national debt and ongoing annual deficits impact the average American? Here are just a few ways.

-In 2006, the government paid $226.6 billion in interest payments to holders of the treasury notes, bonds, etc. This is 2.3 times as much as the government spent on the environment and the Veterans Administration combined in 2006. The national debt is rising rapidly so interest will increase each year, and less money will be available to fund needed programs for Americans.

-The bulk of the national debt is held by wealthy investors. The middle class in America pay the bulk of the income taxes. So the federal government is taking money from the middle class and transferring the money in the form of interest payments to the wealthy. Doesn’t that make you feel good?

-The national debt is increasing at an unprecedented rate. This means that interest payments will continue to rise. This further increases the burden on the middle class tax payers at the same time that the economy is going into the dumper; inflation (gas, food, etc.) is rising rapidly; and the middle class are losing jobs, their homes and their life savings.

Visit the websites below to read more about the irresponsible monetary practices of the current administration and the Congress.

http://www.facingup.org/why

http://www.cbsnews.com/stories/2008/02/12/national/main3822385.shtml?source=RSSattr=HOME_3822385

http://www.usnews.com/articles/news/national/2008/06/03/the-ignorant-american-voter.html?PageNr=2

http://www.usbudgetwatch.org/

http://www.facingup.org/blog/mdavaasambuu/2008/04/growth-u-s-debt

http://archives.cnn.com/2000/ALLPOLITICS/stories/09/27/clinton.surplus/

http://archives.cnn.com/2000/ALLPOLITICS/stories/05/01/clinton.debt/

We know that we will have a new president next year. Whoever wins will inherit quite a mess. Unless we vote the professional politicians out of the Congress in the next election, it will be difficult if not impossible to get the country back on track. Vote your incumbent congressional representatives out of office this November.

Current

National Debt

$9.4 Trillion

2008 Federal

Budget Deficit

$410 Billion

Sunday, June 8, 2008

National Debt / Federal Budget Deficits