Mark Cella a Conservative Explanation About the National Debt
The Effects of the National Debt Are Far Reaching. America Sinks Further Into an Economic Quagmire While the New World Order Boldly Instills Police State Rule in US.
The effects of the national debt can vary depending on whether the discussion involves an individual, a family, a business or another government entity. Our collective debt has rendered Americans defenseless against the rising tide of elitist influence.
The most popular effect is one widely distributed by the media and by the opponents of whoever happens to be in office at the time. In this scenario, the total national debt is divided by the number of people living in the United States at the time.
The result is a personal or individual debt, an amount of money that each person is supposedly responsible to repay.
In reality, each individual won’t have to actually come up with this amount of cash, but the method does allow people to get to a level that is easier to understand than a trillion dollars. Currently the U.S. national debt is estimated at something more than $10 trillion, (in reality it’s more like $100 trillion, but $10 trillion is what the treasury tells us) taking into consideration all the money owed to all creditors around the world.
More than half of this is public debt, which means that the government owes money to individuals, businesses and other countries that have loaned money by buying Treasury notes, bills, bonds and so on. The remainder is inter-governmental debt, money that the federal government owes to itself because it borrowed funds from a government agency such as Social Security.
Mark Cella on Our National Debt
The $10.6 trillion that the United States government owes is the largest national debt of any on the planet.
That fact alone is one of the effects of the national debt, in that other countries and U.S. citizens carry with them a feeling of apprehension because the debt is so huge.
One of the key effects of this huge national debt is the inter-governmental borrowing from the Social Security fund, primarily because the Baby Boomer generation is starting to tap into the benefits they expected to get for working all those years.
The federal government is going to have to get funds from somewhere to replenish the Social Security hope chest so that this large number of retirees can be paid the benefits they have coming.
Mark Cella a Conservative Explanation About the National Debt
Financial analysts and economists have also pointed out another of the effects of the debt, with details on how the size of the debt is discouraging other nations from investing more in the United States.
When considering the national debt, it is also necessary to bring in the dreaded tax word, because it may be necessary for the federal government to raise taxes on income, or some other area, to keep up with the interest payments on the debt.
Not only that, but the dollar is not seen as such a strong currency when the federal government is so deeply in debt. Add to this the concern that overall prosperity might be in jeopardy due to the size of the national debt and the future begins to look a bit more bleak.
Mark Cella on the Effects of Our National Debt
Some economists say they believe that it isn’t quite time to be concerned about the effects of the national debt because the U.S. economy overall is so massive.
In this argument, the economists point to the fact that the national debt was 125 percent of GDP (gross domestic product) after the Second World War. By comparison, the debt has been between 40 percent and 70 percent since that time.
However, these same observers of the economic scene note that, even we aren’t alarmed just yet, people should be concerned that so much of the GDP goes to pay interest rather than being used for social services, infrastructure and other uses. In any case, it is important to understand the effects of the national debt even if we can’t do much about them.
Visit Mark Cella’s site, www.Mark-Cella.com for more Mark Cella fun and serious matters.