OH! THE LINGERING DEBT
March 25, 2009
Tonight, my son called to tell me he was scared. This young man, never one to be afraid of anything, let alone anyone, was now afraid because he had just heard that the government accounting office (GAO) reported that every American family will owe approximately $116,000 to help pay off the national debt. Well, it ain't going to get better. Thanks to the proposed White House budget and congressional additions to boot.
When my youngest grandson was born two years ago, he came into the world owing about $15,000! If my daughter-in-law (his mother) has her way he will soon have a little brother or sister and the stats reveal he, or she, will owe $26,000 - providing he, or she, is born before the end of the year.
That figure (about the price of a new Camaro) represents the share of the public debt carried by anybody born in the United States today, according to the fiscal watchdog group The Concord Coalition.
Take Jada Grace Larsen. She was born Sunday at New Jersey's Hackensack Medical Center. "I'm nervous for her and her future and what she's being born into," mother Jeanmarie Larsen, 37, told FOXNews.com Wednesday.
She and her husband Andrew, 35, said they plan to raise their newborn to know the "value of the dollar" by teaching her to live within her means and avoid frivolous spending. But if Washington doesn't do the same, the individual burden from the national debt only gets more expensive down the road.
When Jada is 10 years old, for example, that per-person debt increases to about $51,000 -- based on the latest deficit and debt projections by the Congressional Budget Office, which looked at the impact of President Obama's budget proposal in 2019.
Josh Gordon, policy director at The Concord Coalition, said such soaring debt levels, while sometimes hard to comprehend, have myriad adverse effects down the road. "The interest you're paying sucks up valuable resources," Gordon said. "It leads to a situation where we're more at the whims of international investors."
The total national debt, as of this week, is above $11 trillion. Add, what undoubtedly will be more bailouts and stimulus packages, as well as the additional I.O.U.'s the Democrats plan to pay back, then you have a recipe for disaster!
Gordon arrived at a per-person figure based only on the amount of debt held by the public, or $6.7 trillion. The price tag? $22,000 a head. That does not include the total national debt as noted above ($11 trillion)
While Republicans argue that looming additions to the debt amount to generational theft, Obama says deficit spending, and his $3.6 trillion budget for next year, is needed to jump-start the economy and generate lasting financial stability.
Dean Baker, co-director at the Center for Economic and Policy Research, also said the size of the economy will play a bigger role than the debt in the quality of life for future generations. Plus he said a lot of that debt is picked up by buyers in the U.S. -- not just overseas.
Jeanmarie Larsen said despite her concerns about what the future might hold, she is staying optimistic and banking on an economic turnaround. "We have to have faith in our new president that things will get better," she said.
Back to my son's phone call the other night: His fear, as is mine and I would say a whole host of Americans, is that the taxpayers will not only pay for the stimulus and bailout packages, but will have to help pay China back for all the loans they carry on us.
Once you carry over government's outstanding deficits from prior years, the total national debt comes to just over $10.6 trillion right now. Every individual in the United States would have to chip in roughly $38,500 apiece to pay it off. My son merely multiplied this figure by three (for him, his wife and son) and arrived at what the GAO has concluded would be the average debt the average family would owe!
Keep in mind that the total federal indebtedness has nearly doubled in just a decade and promises to jump another 1.2 trillion by the end of the year when Congress approves the Obama budget along with the additional goodies the Democrats will throw in.
Yeah, President Obama has promised to go throw the budget line by line and mark out any and all unnecessary spending. Keep in mind "unnecessary" is the operative word and in a word where liberal politicians broaden their base by making promises that create spending, their "budget needs," collectively, are all necessary (at least to them)! And, they are destructive to us!
Does anyone know what comes after "trillions" of dollars? Can you say "Quadrillion"?
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