Lurker, fiscal responsibility in the hands of Republicans IS A MYTH. It is one of the many myths handed down year to year, person to person ad nauseam. Few ever actually do the research to back up what is taken as "conventional wisdom". Yes Sir, Democrats are TAX-n-SPEND liberals. Republicans are fiscally responsible conservatives. Is that the script? The truism repeated to us so often and hammered in our heads so we believe it to be As true as the sun coming up in the morning and the leaf falling to the ground in the fall. What happens when you dig a little deeper?http://www.cedarcomm.com/~stevelm1/USDebt.pnghttp://www.whitehouse.gov/omb/budget/fy2006/pdf/hist.pdfhttp://www.cedarcomm.com/~stevelm1/usdebt.htmAnd what about raising taxes, that thing that we must NEVER, EVER, NEVER, EVER, EVEN BREATHE ABOUT TALKING ABOUT?===============================================================
Long-term risks to financial health of federal government Risks Due to Increasing Entitlement SpendingMain article: United States federal budget
Several government agencies provide budget and debt data and analysis. These include the Government Accountability Office (GAO), the Congressional Budget Office, the Office of Management and Budget (OMB), and the U.S. Treasury Department. These agencies have reported that the federal government is facing a series of critical long-term financing challenges. This is because expenditures related to entitlement programs such as Social Security, Medicare, and Medicaid are growing considerably faster than the economy overall, as the population grows older. These agencies have indicated that under current law, sometime between 2030 and 2040, mandatory spending (primarily Social Security, Medicare, Medicaid, and interest on the national debt) will exceed tax revenue. In other words, all discretionary spending (e.g., defense, homeland security, law enforcement, education, etc.) will require borrowing and related deficit spending. These agencies have used such language as "unsustainable" and "trainwreck" to describe such a future.[56]
While there is significant debate about solutions,[57] the significant long-term risk posed by the increase in entitlement spending is widely recognized[58], with health care costs (Medicare and Medicaid) the primary risk category.[59][60] If significant reforms are not undertaken, benefits under entitlement programs will exceed government income by over $40 trillion over the next 75 years.[61]According to the GAO, this will cause debt ratios relative to GDP to double by 2040 and double again by 2060, reaching 600 percent by 2080.[62]
In 2006, Professor Laurence Kotlikoff argued the
"United States must eventually choose between bankruptcy", raising taxes, or cutting payouts. He assumes there will be ever-growing payment obligations from Medicare and Medicaid.[63] Others who have attempted to bring this issue to the fore of America's attention range from Ross Perot in his 1992 Presidential bid, to investment guru Robert Kiyosaki, and David Walker, former head of the Government Accountability Office.[64][65]
Thomas Friedman has argued that increasing dependence on foreign sources of funding will render the U.S. less able to act independently
Sources:
^ FRB: Speech-Bernanke, The Coming Demographic Transition: Will We Treat Future Generations Fairly?-October 4, 2006
^ U.S. Heading For Financial Trouble?, Comptroller Says Medicare Program Endangers Financial Stability - CBS News
^ GAO Citizen's Guide
^ Is the United States Bankrupt?
^ Yahoo! Personal Finance: Calculators,Money Advice,Guides,& More
^ America The Bankrupt, GAO Head Takes Fiscal Show On The Road To Warn Of Trouble Ahead - CBS News
^ Friedman - Loss of Sovereignity
The National Debt Clock FAQ, numbers used were researched in the Treasury Departments website:
http://www.brillig.com/debt_clock/faq.htmlGraph looks the same as the one that Steve McGourty uses in his study up above.
With regards to "conventional wisdom". I do wonder when people will collectively and conciously figure out that the Earth actually REVOLVES around the sun, --metaphorically speaking.