Use this single point as a litmus test of sorts as you listen to the financial solutions of the Obama, tonight, and the Republicans in their response.
Every single day of the year including holidays, the national debt increases by 4 billion dollars. Nothing can stop that accumulation of debt because it is the cost of interest we pay on our national debt. As you listen, divide the suggested "savings" by 4 billion per day, and that will give you a little idea as to the effectiveness of the so-called solution.
For example, Obama may call for a 15 billion dollar cut in spending which amounts to 4 days of additional debt. In other words, the suggestion amounts to no cut at all. so be careful of being "impressed" with the rhetorical sounds of "big numbers." In most cases, our structured debt is much much larger.
A second caution applies to the suggestion of "freezing discretionary spending." Our chart - from the CBO - suggests discretionary spending is 18 % of the our total annual bill. Some economist figure discretionary at 12 to 15 percent. Whatever the actual figure, the only category that is not structured debt, on the chart in this post, is discretionary spending. Understand that there are billions of dollars spent each year not included in the budget or on our chart above, as well, and that spending is not in view when folks start talking about cutting expenditures.
You have to be informed and our purpose for this blog is to inform within a very narrow informational window. We are not a news outlet. We don't care what Hollywood does, or what happens, generally, in the world of sports or if Obama is cheating or still using cocaine.
This article is an example of what we are most concerned about when it comes to the political climate of the day.
Understand that "invest" and "investment" and "jump start the economy" are all phrases that are talking about more and more spending. You will these phrases tonight.
Tonight we are going to hear promises of spending. Think before you applaud.
You might take a look at this site with regards to national finances: http://www.warresisters.org/pages/piechart.htm
When you hear the teaparty message tonight, remember that thier leader who touts the constitution has not even the most basic knowledge of American history.
ReplyDeleteMore here.