Skip to content
Catholic Online Logo

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

10/30/2013 (8 months ago)

Catholic Online (www.catholic.org)

Liability could be higher when you consider not all adults pay taxes.

The federal debts is now so large that each American taxpayer owes 1.1 million in debt. Also, it gets worse. Much worse.

It will never be repaid.

It will never be repaid.

Highlights

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

10/30/2013 (8 months ago)

Published in Politics & Policy

Keywords: National debt, liability, 1.1 million, solutions, problem, balanced-budget, repudiate, bankruptcy


LOS ANGELES, CA (Catholic Online) - You now owe more towards the federal debt than you will probably earn over the rest of your lifetime. Your individual liability is now 1.1 million dollars.

That's $1,100,000 for every adult citizen in the U.S.

It gets worse. When you consider that about half of adult Americans actually pay anything in taxes, you realize that your liability is probably much closer to 2.2 million than the reported 1.1.

The national debt has just passed the $17 trillion mark with $7 trillion coming during the Obama administration's tenure. Add the "Affordable" Care Act to the mix and we're looking at trillions more because many Americans will enter the Medicaid system, Medicare patients are being dropped, and government subsidies are making up the difference.

It is time to recognize that our country is broken. We are broken in many ways (spiritually, morally, socially), but within the scope of this article, we are broken financially, and this will have a profound impact on our future. The credit of America is far from AAA.

Our government spends a little over ten billion dollars per day according to statistics reported by the Tax Policy Center. However, our receipts only cover about two-thirds of that amount. Future projections by the Center suggest better times ahead, but we will continue spending more than we take in for the foreseeable future.

Any disruption to our economy, a terrorist attack, a war, a financial collapse, or even a good recession can sink the economy further, making those dreamy, low deficit numbers turn into bigger nightmares.

Someday, the United States of America will be so far in debt that we will no longer be able to repay it, ever. Our creditors know this, but for now, they believe the U.S. will do anything to repay them. Only when they feel we're at the end of our financial rope, will they start cutting us off, then the pain starts.

There are only two possibilities for the country. One is to dramatically cut spending, by at least a third. Not over 10 years either, but immediately. Much of this would come from the military, but some would have to come from social welfare programs and various government schemes.

The most important thing is for the government to cut its corporate welfare policies out. Specifically, the government pays out much of its $10 billion dollars per day to contractors who bill the government premium rates for goods and services. Healthcare is also a major expense. Unless the government learns how to say no to high prices, we're doomed.

Of course, the ramifications of these policies is economic decline. A reduced military will reduce U.S. hegemony. That means less favorable trade in the long-run. The dollar could lose its status as the world's reserve currency. Cuts at home would reduce spending stimulus. Welfare money is expensive, but it sure stimulates the economy, because these recipients spend all of it-they can't afford not to.

The cuts in big-time payouts to government contractors would also be pretty painful. Quality would drop, unemployment would increase, but we would have fewer millionaires living in belts around the D.C. area where a surprising concentration of government contractors now reside. These people would have to enter the more competitive, private market to maintain their fortunes. It would be harder for them, but increased privatization of some government services would give them a new niche while reducing costs. Naturally, we don't want to bankrupt these citizens who also pay the most taxes, but we also don't want them suckling upon Washington either. They consume much more than they pay. Yes, they're going to hate this-vehemently. Do we really have a choice?

The impact to medical care would also be unknown, but cutting back on this expense in the form of smaller payouts, possibly even price controls, would lead to shortages. There would also be much less innovation in healthcare coming out of the United States, although current innovation is of questionable value when every new drug sells for a price that can bankrupt a family within weeks.

So such cuts would be painful, they would provoke an immediate recession, but are the only way to wrangle the economy back under control. Future administrations would have to keep up the discipline, possibly through a balanced-budget amendment.

If the first solution is a crash-diet, then the second is liposuction. The United States could, theoretically, repudiate its debt. In other words, the nation would declare bankruptcy and stick debt holders with the loss. The country would wipe its debt-slate clean and start again at zero.

Of course, even if this were truly possible, we would have to start over on a diet, because our credit would be ruined-no more easy money to fund government, and we would never again be able to afford massive expenditures because the funding would not be there. A balanced-budget would be forced on the nation because nobody would loan us money, at least not for a long time.

In actuality, the most likely result is the second one, in another generation or so. There's no way to tell what the future really holds. For now, we seem to be hoping that the next generation discovers some breakthrough that will bring surpluses back to our economy, just as the development of the internet did in the 1990s.

However, the likelihood of that is quite small.

No child should be born with a debt against their name, especially a debt that for them produces no return. Our massive fiscal irresponsibility is a product of our broken political system, the malignant spread of liberal spending policies, ironically perpetuated by Republicans and Democrats quite alike, and the doting of our leadership on both corporate and individual welfare recipients. If you are poor, you love the government. If you are rich, you have reason to love the government too, the rest of us, not so much.

Our house of cards will collapse one day. We had best decide now how to manage it, because it will happen. The sooner we start, the easier it will be on everybody, and our troubled republic.


A birth foretold: click here to learn more!

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2014
Sports:
That sports may always be occasions of human fraternity and growth.
Lay Missionaries: That the Holy Spirit may support the work of the laity who proclaim the Gospel in the poorest countries.



Comments


More Politics & Policy

In President Obama's war on religious freedom the people suffer another loss Watch

Image of A July 21 executive order has dealt a huge blow to the cause of freedom of religion in the United States.

By Catholic Online (NEWS CONSORTIUM)

President Barack Obama's July 21 executive order prohibiting discrimination based on sexual-self-identification has lead to strong criticism from several prominent U.S. bishops, calling the executive order "unprecedented and extreme." LOS ANGELES, CA (Catholic ... continue reading


Efforts against female genital mutilation could be thwarted by population growth Watch

Image of Due partly to community activism and legislation, the prevalence of FGM, which involves the cutting away of the external female genitalia, and the marriage of girls under the age of 18 has decreased slightly over the last 30 years, UNICEF said.

By Lisa Anderson, Thomson Reuters Foundation

Advances in fighting female genital mutilation, or FGM and child marriage could be offset by population growth unless the rate of progress increases, according to new data released Tuesday by the United Nations Children's Fund (UNICEF). (Thomson Reuters ... continue reading


FREE SPEECH VIOLATED: Tea party groups' lawsuit against IRS proceeds Watch

Image of Among the individuals named in the lawsuit is Lois Lerner, who headed the division that processes applications for tax-exempt status at that time.

By Catholic Online (NEWS CONSORTIUM)

They're not going to take it - and they're taking their claims to court. A federal judge has allowed a lawsuit by 10 tea party groups to move forward against the Internal Revenue Service. The judge rejected a request by the federal government to dismiss all the ... continue reading


'Suing the president is the right path to go down here,' Boehner declares Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

The House of Representatives has no plans to use its own constitutional authority to withhold funding from actions by President Obama. House Speaker John Boehner (R-Ohio) indicated that if the president takes actions that exceed his constitutional authority, ... continue reading


Federal government says state death penalties are 'unconstitutional' Watch

Image of A federal judge has called California's death penalty unconstitutional. Surprisingly though, this judge is a conservative republican, a party that has long opposed federal overreach into state rights.

By Catholic Online (NEWS CONSORTIUM)

A federal judge ruled that California's death penalty is unconstitutional on July 16, claiming that the state's system is arbitrary, unfair, and cruel and unusual because of a lengthy process that leaves prisoners in the dark about their actual death row status. ... continue reading


'American people have a right to know,' Issa proclaims Watch

Image of Darrel Issa says that Simas' testimony was

By Catholic Online (NEWS CONSORTIUM)

Oversight Committee Chairman Darrell Issa of California said administration claims that White House political director David Simas was immune from testimony were "absurd" and "deeply disturbing." Defying a subpoena, Issa has now set up a new high-profile fight ... continue reading


Cheat on your taxes? It just got a lot easier Watch

Image of If you still fear a knock at your door anytime soon, it must be noted that one's chances of getting audited vary greatly and are based on income.

By Catholic Online (NEWS CONSORTIUM)

If you cheat on your taxes - or senselessly worry that some indiscretion in your recent past will have the Internal Revenue Service shortly breathing down your neck - things just got a little bit brighter. The GOP-controlled House has voted to slash the budget ... continue reading


While federal tax revenues are at an all-time high - federal government still running a deficit Watch

Image of What's the old saying?

By Catholic Online (NEWS CONSORTIUM)

While federal tax revenues continue to run at a record pace in fiscal 2014, their still no way out of the forest yet. The federal government's total receipts for the fiscal year closed last month at an unprecedented $2,258,565,000,000, according to the Monthly ... continue reading


President Obama accused of being insufficiently engaged in border crisis Watch

Image of President Obama wishes to make clear to parents and adults in Central America that there is no payoff for sending their children on the dangerous journey northward.

By Catholic Online (NEWS CONSORTIUM)

With hundreds, if not thousands of unaccompanied children streaming across the United States' southwest border with Texas - and more on the way - America's border security and policies may be in transition. Republicans and some Democrats have since accused U.S. ... continue reading


Put the spotlight - ON ME: Obama uses first person singular 99 TIMES in speech Watch

Image of In President Obama's recent speech, he used a first person singular, on average, every 12 seconds.

By Catholic Online (NEWS CONSORTIUM)

"I," "Me," sand "My" were words used by U.S. President Barack Obama in a speech vowing unilateral action. In fact, Obama used the first person singular a whopping 199 times. This figure did not account for instances when he quoted a letter from a citizen or ... continue reading


All Politics & Policy News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Second Corinthians 4:7-15
7 But we hold this treasure in pots of earthenware, ... Read More

Psalm, Psalms 126:1-2, 2-3, 4-5, 6
1 [Song of Ascents] When Yahweh brought back Zion's ... Read More

Gospel, Matthew 20:20-28
20 Then the mother of Zebedee's sons came with her ... Read More

Saint of the Day

Saint of the Day for July 25th, 2014 Image

St. James the Greater
July 25: For James there was no indication that this was the day that his ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter