Stephen Bové - Art, Technology, Right Action

Tuesday, October 30, 2007

The Real Federal Debt Burden: $175,000 per citizen

The federal deficit per US citizen (303 million of 'em) is now ~$30,000, which of course means that per taxpayer, its 2x or 3x that, which means that we, as a nation, are in debt well beyond 2X annual average pre-tax income...

But that's only the $9trillion "debt"...

Here's the rest of the story from Congressman and MD
Ron Paul:

"The official national debt figure, now over $9
trillion (up from 5.7 trillion in 2000 and increasing
at over $1B per day), reflects only what the federal
government owes in current debts (money already
borrowed). It does not reflect what the federal
government has promised to pay millions of Americans
in entitlement benefits down the road.

Those future obligations put our real debt figure at
roughly fifty trillion dollars- a staggering sum that
is about as large as the total household net worth of
the entire United States. Each individual citizen's share of this fifty
trillion amounts to about $175,000. (that's around $500,000 per tax payer - ED).

Don't believe for a second that we can grow our way out of the problem through a prosperous economy that yields higher future tax revenues.

If present trends continue, by 2040 the entire federal budget will be consumed by Social Security and Medicare alone.

The only options for balancing the budget would be cutting total federal spending by about 60%, or doubling federal taxes. To close the long-term entitlement gap, the U.S. economy would have
to grow by double digits every year for the next 75 years."