Friday, July 31, 2009
Monday, July 27, 2009
Wednesday, July 22, 2009
Wednesday, July 15, 2009
The proposed government plan looks something like this:
-surtax on individuals who earn $280,000.
-surtax on couples who make $350,000 or more.
Tuesday, July 14, 2009
Nine months into the 2009 fiscal year that ends September 30, the budget deficit widened by 94.316 billion dollars in June to 1.086 trillion dollars, according to the Treasury's monthly statement of receipts and outlays."
Complete article HERE.
Saturday, July 11, 2009
Check out the U.S. Debt Clock....it will turn your stomach.
Deficit is the amount of money going out the door verses the amount received in a year (via taxes receipts). This is a short term view of spending. Present U.S. Government Deficit year to date is $965 billion and rising (+$965,000,000,000) at a rate of ~ $600,000 every 10 seconds.
Debt is the amount of money borrowed to pay for something..like using a credit card to by a TV. The problem arises when you don't pay down your credit card and debt accumulates...this is what the U.S. Government is doing. Debt is the accumulation of deficits. The government says it backs its received credit (debt) with the value of American production...in other words the work, goods and services you and I do. Our sweat and labor is the governments bargaining chip.
Presently, the government is in debt $11.39 trillion and rising (+$11,390,000,000,000) at a rate of ~ $1 million every 3 seconds.
The government is banking on 2 things to get out of it's present pickle...a robust recovery in the economy and raising taxes on those making over $200,000 (or $250,000 or $300,000...the number keeps changing) to pay for the debt, BUT there is a big problem, well several. The government is adding new programs that require even more funding. So instead of reining in spending, they are increasing it. This will accelerate the deficit and thus debt. Taxing the only group left with any income to spend in the economy just doesn't seem to smart. So if the 'wealthy' have less money to buy, how exactly is the economy going to get going?
Oh I forgot to mention 70% of the US economy is generated by the U.S. consumer. If we have no money to buy items other than groceries...how exactly is the economy supposed to bounce back? Manufacturing and service sectors will continue to collapse putting more people out of work. Even less revenue will be coming into the government. We are stuck in a vicious circle, and it is only going to get worse.
Call your congress critter and tell them to knock it off. Time to make the tough choices and get out of debt...that really will stimulate the economy.