Since the state of the union speech is tonight,and spending,debt,and jobs will be the main topic of discussion tonight,maybe a look at spending and the national debt would be a good use of our time.I should tell my readers that for the second time in my life I will be listening to the state of the union speech.Why you ask,haven't you listen to the annual presidental speech before?The answer is that they all basically say the same thing that one can predict with a great degree of accuracy just what will be said.The speech has evolved into a glowing report on the present administration.Tonights speech will saqy that we must move foreward, invest in new technologies,basic infrastructure like roads,bridges,electrical tramission lines etc.then it will go into the need to cut spending, waste,abuse, and fraud.Sound familiar.I am going to listen so maybe get some new ideas on future blogs.
Now to the discussion at hand, the debt.Last night I spent a few hours researching the national debt from 1789 to2008.And I discovered some intresting facts.From 1789 to 1849 the federal government had a surplus of $70 million, A pretty good start for a new nation.Then from 1849 to the present we had only 13 years were the federal government took in more than it spent.In 1920 we had a surplus of $290 million and it gradually increased to $738 million in 1930. Thats a period of eleven years were we spent less than we took in.The next time we had a surplus was 1960 with a surplus of $510 million,then jump forward to the year 2000 were we had a syrplus of $86,422 million, or as we would say $86 billion 422 million dollars.That means that for 209 of the 222 years we have been in existence we have spent more than we took in.You could say that we do not know how to live within a budget.But is living within a budget such an important thing for our government to aspire to, or does it really matter.
First of all lets look at just who we owe the money to: Japan owns around $800 billion. China about $900billion to $1 trillion.Maybe around 1 to 1 1/2 trillon to investors in Europe and Russia, and the Middle East. The rest of the other $10 trillion is owed to our own citizens.So why you ask, is there such a fuss about the money that is owed to China, or even to the debt in general.The amount that we owe to China,Japan and others is really not the most important thing. Ask yourself this question,just how much money do you owe on your credit card. Do you keep using it,and slowly but surely add to the total amount you owe the credit card companies. The only thing you are usually concern with is how much in intrest payments you must make each month.Once you get accustomed to the payment,you don't think about it,until the payment is increased,then it takes on greater importance in your budget. Well the same thing is true with the federal government.
as long as the intrest payment was around $500 billion or less, it was no big thing.But being forward thinking our politicians have noticed a curious thing. That the intrest payment on the debt will jump from about $500 billion in 2014 to $1 trillion by 2020,and the rate of increase will jump dramatically almost every year thereafter if the rate if deficit spending is not significantly reduced.Thus the hue an cry about the money owed and the need to live within a budget. Now ask yourself this question,Are the crys that the Sky is Falling by our politicans truthful or just something to placate the voters and insure that they and there party get reelected in the next election.Are they refusing to go with the most logicial way to pay down the debt,because they are afraid of the voters reaction?If we have spent more than what we have taken in for 209 of the 222 years we have been in existence,is the problem critical or could slow proven methods be the ones we should be look at. Can we afford to spend more on the things that need to fixed through out the country? And if we can't would we ? these are we be willing to pay more in taxes to do so.These are the assumptions and questions that need to be answered by each and every one of us. So now one final question, Will you watch the state of the union address tonight?