Thursday, April 09, 2009

The Burgeoning Beast

According to a Wall Street Journal article last week, Obama's budget plans over the next 10 years are forecast to result in an increase of $6.5 billion in federal debt. Divide that by a US population of approximately 300 million, and you get an increase in debt of about $22 thousand PER PERSON over the next ten ten years, or about $2,200 per person per year.

The current national debt stands at about $11 trillion, or about $37,000 per American. This does not count personal credit card, home loan, school loan, or any other kind of personal debt. Nor does it count municipal debt or state debt. This is only federal debt, the kind of debt that we get as a result of electing the president and congress. This debt is a hidden drain on our economy. Exactly how it works against our economy is a bit more complicated than the obvious pain of increasing taxes, which is why politicians prefer to increase debt rather than raise taxes.

Kudos to Obama if he manages to spend that money with unprecedented effectiveness, but I have my doubts. Maybe Ron Paul, or some hybrid of Paul and Obama, say "Pabama," will run for president next time. He/she/it already has my support.


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