Solving the debt would require hard choices and difficult compromises from both parties, cutting programs and raising taxes, getting out of costly wars ect. And we'd all have to adjust our personal spending habits and stop our personal deficit spending.
Another problem is the definition of national debt, what number do you use? The
treasury website shows that publicly held debt is at 5.6 trillion. It also shows that intra government loans, like dipping in to SS funds, is at 4.1 trillion. That's 9.7 trillion right there. If you add in future SS, medicare, medicaid, it would be much much more. I've heard estimates from 41 trillion to 65 trillion, and that's just national government. Add in household debt it gets worse.
I agree its a big problem we aren't addressing. Seems like we by and large wait until a problem turns into a crisis before we address it and then we scrabble to fix it. Why not confront it now in a calm, reasonable well though out way instead in a frantic manner that we probably won't like the solution.
Sources:
On page 32 it says futre budget shortfall for benifits are 47 trillion over next 75 years.
http://www.gao.gov/financial/fy2007/07frusg.pdf
A paper on US debt and possible solutions from the St Louis Fed
http://research.stlouisfed.org/publi.../Kotlikoff.pdf
US Credit market as percentage of GDP
http://www.rgemonitor.com/globalmacr...e_fainthearted
Aritcle on US household debt
http://www.levy.org/pubs/ppb_88.pdf
09-26-2008, 05:08 PM
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