Tuesday, December 11, 2012

Sobering statistic from ALG: Even if Obama gets 100% of what he wants in budget talks, due to entitlements the national debt could grow to $100 trillion

Welcome to the People's Republic of Broke-istan

Excerpted, column by Robert Romano, "Following Thelma, Louise, and the Coyote over the Cliff" Americans for Limited Government, Dec. 11:
Revenues are averaging $172.5 billion a month, and spending $319 billion. For every dollar we spent, we had to borrow 45 cents. That's an average deficit of $146 billion every month.

Even if Obama gets everything he wants - where income, capital gains and dividends tax rates all increase on the top two-brackets - it will only raise $80 billion in 2013, or $6.6 billion a month, reports the CBO. That barely makes a scratch in the deficit.

The debt would still grow by more than $1 trillion annually, just like it has every year for the past four years.

The only question is whether survival is possible upon impact below.

Consider this. The $16.4 trillion national debt is already larger than the entire economy. By 2022, it will rise to $26 trillion. By 2042, if nothing changes, it could easily be as high as $100 trillion - far outpacing the likely growth of the economy.
Full editorial NetRightDaily.

4 comments:

Brian said...

I am glad a few of us can do the math.

The debt is non payable. I see no way that this debt becomes payable. We are insolvent. Period.

Eric Dondero said...

We could grow our way out of this debt if we had serious tax cuts, like a complete abolishment of the income tax. Or, at the very least a very low flat tax.

Abolish taxes and the debt will soon disappear.

HARD CORE TEA said...

That's the ticket. How is the government supposed to get any money if your abolish all taxes? I say a flat tax 13 percent and that is it. Live within your means!!

Eric Dondero said...

Do we need Government? Not saying we should abolish Government altogether. But we can make it teensy weensy, almost non-existent.