Debt reduction?

[jackie schmidt]

Bob, true, all individules, and governments, except the Federal Government, have the problem that sooner or later you will go broke if you keep spending more than you make.

The Federal Government does not seem to have that problem because it has the one ability nothing else has, the power to print money.

I said " does not seem" because the problem is, as the Federal Government simply prints more, what they print becomes worth less.

There is no easy solution to any of this, and if there was, I doubt that the majority of Americans would adopt it. Why? Because far too many people have become accustomed to living off of some type of Government Handout. As the population ages, fewer and fewer people will be putting money into the can while more and more will be taking it out.

Add in all of the people who never put anything in in the first place, and it is not hard to see the problem.

If everybody is waiting on something to change, you will have a long wait.

Everybody keeps saying, "let's return to the good old days". Just exactly what, and when, were "the good old days?..........jackie

 

[abintx]

National Debt
Bush - 8 years - 5.849 trillion
Obama - 4 years - 5.081 trillion
There is no goverment program in the history of the U.S. that actually cut national debt.
Hovis

Gentlemen, don't lose sight of the fact that before Ronald Reagan and the Republicans took office this country had a deficit of around $960 BILLION dollars. That's from the time this country was founded until he took office, a period of approximately 200 years.

When he left office, this country had a deficit of slightly over $2 TRILLION. He more than doubled the entire debt in only 8 years.

He and the Republican Party are the father of TRILLION DOLLAR DEFICITS.

On the other hand the Democrats under Bill Clinton ran a budget surplus that was quickly eroded by George Bush Jr.

Since there seems to be a stable of what appears to be award winning PhD tenured Economists that now reside in the halls of this site, here is an article you might ponder as you would when sitting behind your honorary university "Chairs": http://www.forbes.com/sites/karlwhe...-budgets-really-destroy-the-american-economy/

It's interesting that some macroeconomic theorists think that in order for a government to run a surplus, the private sector has to run a deficit, and vice versa. Now there's something to examine, when you put on your thinking caps.

 

[vicvanb]

Wilbur

"Here's what I'm gonna do about it...."

You have not seen those words because the "average Joe" senses that there is very little he can do. He knows that Washington is dysfunctional--nothing gets done because both sides are more interested in scoring political points than addressing the country's problems. He knows that money talks and the only real input the politicians listen to comes from special interest lobbyists. He thought that things would change if Obama got elected (if he's on the left) or when the Tea Party rose to prominence (if he's on the right) and they did change--things got worse. He thought that elections mattered but now it seems they don't.

Seems like American "exceptionalism" no longer applies. Average Joes are angry because they see so many problems that need fixing but there is no way they can contribute to fixing them.

Am I wrong??

 

[Chism G]

Oh yeah" The good Ole Days"

There was a time, in the industrial Northern part of the Country,when everybody that wanted,had a job in a booming manufacturing era. This was the 40's,50's and early 60's,when the per capita income in that part of the Country was the highest in the nation. The Welfare system,Corruption and Jobs outsourcing, Both Foreign and Domestic,slowly turned some of our greatest cities into Economically Depressed Slums. I suspect that this Cancer will continue to spread to other areas of the Country. The quick fix is, bring the Jobs back.Cut the hand outs, Put the thieves in Jail. The problem is, electing Politicians that have the Balls to address these issues.



Glenn

 

[vicvanb]

Are you sure?

The problem is, electing Politicians that have the Balls to address these issues.

Maybe just the opposite--elect more women. During the latest crisis in DC, women were the only ones offering intelligent options to re-open government and deal with the debt ceiling.

 

[canuck]

When a country imports over half the stuff they buy WHICH was once manufactured in the States it catches up with you sooner or later. IT HAS NOW CAUGHT UP WITH YOU.There are millions out of work because of out sourcing.That is an awful lot of real tax revenue lost.However this is ONLY part of the problem. The problems in the Nation run deep.
Treating the symptoms works for a little while but if you really want real progress you must get to the root cause. The U.S will continue to fall until they decide to deal with the real problem but like an addict I don't believe the nation as a whole has the stomach or even the desire to change.It's hard to fix something you really don't truly want to fix.
I believe there is a small glimmer of hope for the U.S but time is running out and fast.

 

[Wilbur]

Bingo!

And like an addict...the only way is up is from rock bottom. It ain't the pusher..er..politician. It's all of us together ridin' down the road in a new red Mercedes wishing for somebody else to fix it before we have to downgrade to a used red Mercedes..

 

[adamsgt]

When a country imports over half the stuff they buy WHICH was once manufactured in the States it catches up with you sooner or later. IT HAS NOW CAUGHT UP WITH YOU.There are millions out of work because of out sourcing.That is an awful lot of real tax revenue lost.However this is ONLY part of the problem. The problems in the Nation run deep.
Treating the symptoms works for a little while but if you really want real progress you must get to the root cause. The U.S will continue to fall until they decide to deal with the real problem but like an addict I don't believe the nation as a whole has the stomach or even the desire to change.It's hard to fix something you really don't truly want to fix.
I believe there is a small glimmer of hope for the U.S but time is running out and fast.

OK, so what do think is the "real problem"

 

[Charles E]

There are a few farmers in Congress and most of them are millionaires who often get farm subsidies that they vote for. On a vacation to Iowa this last summer I was amazed by the number of farmers who are millionaires. The day of the small family farm is fast diminishing with large individual or corporate farms becoming more and more the norm. Farming is now big business and this is the trend of the future. This past year I heard of one small Iowa farm that sold for $18000+ per acre. When you said "like it use to be" does not mean the way it is now.

Well, while I kinda agree with you about farm subsidies -- our family farm that my uncle ran from 1935 until 1980 was 320 acres -- you've sort of forgotten what a million dollas is worth today.

In 1965, a mid-level chevvy was around $2,500, new. Close to 10 times that today.

Or, if you had a million dollars, and you could get a 7% return before taxes (still tough to do), that would give you an annual income of $70,000. Now a husband & wife in North Carolina, both teaching high school, would have an income of around $90,000. Much higher in New York, of course. So your income on that 1 million would be less than a pair of high-school teachers.

Worse, if you had to live off that 1 million for a length of time -- say 20 years; it wouldn't be worth anywhere near as much. That's called inflation. So you better take 5% of that return & plow it back into your money available for investment, to account for inflation. That leaves $20,000 a year for income, before taxes -- to live off.

And it is tough to get a 7% return, year after year. Before Ronnie Ray-gun opened up banking, the bankers that took deposits had a 3-6-3 rule. You pay 3% on deposits, you charge 6% on loans, and you hit the golf course by 3pm. Harder to get a higher return than the bankers...

BTW, before the easing of restriction on the banking industry by Regan, that is, between 1932 and 1980, we had exactly zero financial crises. Zero. Nada. None. Since then...count 'em up. I get 4 in 35 years.

Now who lost in those? You think it was the bankers?

Still, if you're 70 or so, you can live out your life on the $1,000,0000. Because you've got Medicare. Without Medicare...

http://www.cbsnews.com/8301-204_162-57568290/onlineoutrage-after-croatian-child-reportedly-charged-$837000by-u.s-hospital-for-cancer-treatment/

Cost of treatment for a girl without insurance: $837,000. Try that with a $1,000,000 lifetime limit on your health insurance policy. No such limit with Medicare...

 

[Wilbur]

You have not seen those words because the "average Joe" senses that there is very little he can do. He knows that Washington is dysfunctional--nothing gets done because both sides are more interested in scoring political points than addressing the country's problems. He knows that money talks and the only real input the politicians listen to comes from special interest lobbyists. He thought that things would change if Obama got elected (if he's on the left) or when the Tea Party rose to prominence (if he's on the right) and they did change--things got worse. He thought that elections mattered but now it seems they don't.

Seems like American "exceptionalism" no longer applies. Average Joes are angry because they see so many problems that need fixing but there is no way they can contribute to fixing them.

Am I wrong??

You're right about the perception.....BUT....the Average Joe CAN fix it. All it takes is enough Joes willing to sacrifice a few years driving a used car and eating beans (home cooked). I'm guessing that most Joes know this and are falling back on that perception you mentioned. Status Quo is nearly always the easiest.

 

[JerrySharrett]

You're right about the perception.....BUT....the Average Joe CAN fix it. .

Remember, WE THE PROPLE are the Average Joes.

 

[GerryM]

Debt Reduction

The Three ways Government handles problems.
1 start a new program.

2 Legislate the problem away

3 expand an existing program by throwing more money into it.

That's the way Washington thinks.