published Tuesday, June 28th, 2011

Can the U.S. government go broke?

It defies reason to claim that our federal government, which is taking in over $2 trillion in taxes each year, is taxing the American people “too little.”

And yet at the same time, we are going deeper in the red, more than $1.4 trillion each fiscal year, because Congress insists on spending far more than even our nation’s burdensome tax rates can bring in. With that pattern having persisted year after year under multiple congresses and administrations, it is no surprise that we have a $14.3 trillion debt — and hundreds of billions of dollars in annual interest payments on that debt.

So, could the United States actually go broke? Some European nations that have been spending the way we do in this country are, for all practical purposes, bankrupt. And with Medicare, Social Security and other obligations rapidly rising in cost, is it so farfetched to think we will, in the not-too-distant future, hit a point at which we can’t pay our bills?

Do you believe foreign countries would lend us what we need — on top of the huge amounts of money we already owe to nations such as Communist China?

We hope we never have to find out the hard answers to such questions.

But we are up against the $14.3 trillion legal debt limit — with no clear plan in place to cut spending. Instead, many lawmakers and the president are actually pushing for an increase in the debt limit.

Left unexplained is how doing more of the borrowing and spending that got us to this point will solve the debt problem.

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nucanuck said...

Spoiled, lightly taxed Americans have a Congress that seems to disagree over spending and taxes. The evidence shows, however, that both parties like to spend and neither will tax enough to cover what they have voted to spend. We can argue about the details, but that is the real story.

We stimulate (borrow) when the economy falters, then we fail to repay when the economy recovers. Then we do it again. And again. Now we have run out of credit and resorted to the kind of financial shenanegans that would end up in jail time, if an individual were to try the same thing.

So can we go broke? Yes, we are there now. The bigger question is how default will play out and can we keep it orderly?

June 28, 2011 at 1:33 a.m.
librul said...

If the republicans in congress would start acting like statesmen and women rather than arrogant, intransigent, ideological crybabies - we could solve this "crisis" of their creation in a very short time.

June 28, 2011 at 12:02 p.m.
hambone said...

But Librul, you don't understand. The republicans only goal at this time is to insure that Obama is a one termer. No matter what happens to the country or economy.

Things that the GOP was for, before they were against it. The Dream Act Cap and Trade Individual Mandate Voted 9 times to raise the debt ceiling for "Dubya" for a total over 4 trillion

June 28, 2011 at 5:01 p.m.
BigRidgePatriot said...

3/3 do not think spending is a problem? We are just not taxing enough? This country is screwed. The riots in Greece will be nothing compared to what we will see when your entitlement programs go bust.

Eventually this happens when you turn your security over to bureaucrats! You think that parade of clowns in Washington has what it takes to buck history? Laughable.

June 28, 2011 at 5:38 p.m.
rick1 said...

BRP, you are correct we do not have a revenue problem. We have a spending problem.

June 28, 2011 at 7:03 p.m.
dave said...

Well they better do something...cause there is a whole lotta folks out there that have never worked a day in there life and have been sucking the blood of the rest of us....when the free food and government checks stop coming...what will the do...The only other thing they know, get a handgun and go and rob someone.

June 28, 2011 at 7:22 p.m.
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