Friday, March 26, 2010

Let's Put This in Everyday Terms

Here's the scenario:

Today is payday and after taxes your employer put $1,000 in your bank account.  Out of that thousand bucks, nine hundred dollars is going to pay your debt.  Keep in mind, food is not debt.  Electricity is not debt.  Gasoline is not debt.  How ya feeling about your paycheck now? 

Can you take care of your family on the ten cents on a dollar that is left after you've paid your debt?  Can you prepare for your children's future?  If not, what is the effect that the debt that you have incurred have on your children?

Now, consider this:

President Obama’s fiscal 2011 budget will generate nearly $10 trillion in cumulative budget deficits over the next 10 years, $1.2 trillion more than the administration projected, and raise the federal debt to 90 percent of the nation’s economic output by 2020, the Congressional Budget Office reported Thursday.
Don't fool yourself, when our country's debt reaches the point that it consumes 90% of GDP, it will impact our children.  Their lives will be vastly different because of the debt that our government has incurred.  Is this what you want for them?

What about our elderly?  This country has five trillion dollars of unfunded obligations under Social Security and thirty-eight trillion dollars of unfunded obligations under Medicare.  We promised those programs to our elderly and then we spent the money.  On top of that, we now have yet another entitlement program, ObamaCare, that will demand even more money that simply doesn't exist. 

Your family can't survive with 90% debt and neither can your country.  The solutions aren't easy but they are necessary.  Those of us in our "middle" years will need to sacrifice the most so that we can keep our promise to those who have already retired and provide our children with a better future.  Most of all, our government has shown that it has no fiscal disipline so it is up to us to put our government on a buget.

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