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A government debt is a government claim against personal income and private property – an unpaid tax bill. —Hans F. Sennholz
Excessive spending and inflicting debilitating debt is integral to all modern democracies. Why? Elected politicians institute programs for current voters and shift the debt to future workers, even the unborn. Social Security, Medicare, prescription drug benefits for seniors are prime examples in America.Shut Down Reveals the Necessity of Enormous Political and Financial Corrections
The headline in the Wall Street Journal states America's debt and political tragedy:
Niall Ferguson: The Shutdown Is a Sideshow. Debt Is the Threat
An entitlement-driven disaster looms for America, yet Washington persists with its game of Russian roulette.
Ferguson, a financial historian from Havard, believes entitlement promises – Social Security, Medicare, Medicaid and now ObamaCare – will send America's debt to destructive levels. Citing a recent Congressional Budget Office (CBO) analysis, Ferguson warns that America's explosive debt will reach 200% of Gross Domestic Product (GDP) within the lifetime of our grandchildren!
Last month, in its 2013 "Long-Term Budget Outlook," the CBO echoed the work of Harvard economists, Carmen Reinhart and Ken Rogoff:
"The increase in debt relative to the size of the economy, combined with an increase in marginal tax rates ...would reduce output and raise interest rates … Those economic differences would lead to lower federal revenues and higher interest payments. . . .
Ferguson correctly accuses America's politicians of playing Russian Roulette with the future of America.
"At some point, investors would begin to doubt the government's willingness or ability to pay U.S. debt obligations, making it more difficult or more expensive for the government to borrow money. Moreover, even before that point was reached, the high and rising amount of debt that CBO projects under the extended baseline would have significant negative consequences for both the economy and the federal budget."
Wayne Brough, chief economist at FreedomWorks, recognizes the devastating debt and decline of America:
The nation faces a long-run fiscal gap of $222 trillion, according to economist Laurence Kotlikoff, and without effective fiscal management, the nation faces an economic contraction as well as higher taxes.
Horrifically, – Obama, Boehner, Reid, Pelosi, McConnell and most of their acolytes are only interested in winning the next election – the 2014 election. Our politicians are playing the equivalent to high school politics in comparison to the decline of power and freedom of all Americans. Most politicians are interested in obtaining power to control the Senate and House, which will help to impose their political agendas on the American people.
Shame, shame, shame on Obama, Boehner, Reid, Pelosi and McConnell and most of their underlings.
Ferguson, Brough and the CBO have clearly stated our destructive debt tragedy. Now We the People must convince our fellow America of the absolute necessity of making major structural changes to save democracy and freedom for our children and grandchildren.