Is the United States in so much debt because we spend too much or produce too little?

[Random Variable]

Even if the federal government didn't spend a penny next year, I'm sure our national debt would continue to grow (especially now since there is a possibility that we might be importing all of our cars).

 

[JS80]

Originally posted by: Random Variable
Even if the federal government didn't spend a penny next year, I'm sure our national debt would continue to grow (especially now since there is a possibility that we might be importing all of our cars).

I don't think you understand what the national debt represents, and how it compares to other first world nations.

 

[Genx87]

If the federal govt magically was able to spend 1 penny it could pay off the debt in about 3 years. Because it is taking in about 3 trillion in revenues every year from taxpayers.

So the bottom line is yes, it spends too much.

 

[Random Variable]

Originally posted by: JS80

Originally posted by: Random Variable
Even if the federal government didn't spend a penny next year, I'm sure our national debt would continue to grow (especially now since there is a possibility that we might be importing all of our cars).

I don't think you understand what the national debt represents, and how it compares to other first world nations.

Our trade deficits with other countries are only going to get more lopsided (if that's even possible).

 

[JS80]

Originally posted by: Random Variable

Originally posted by: JS80

Originally posted by: Random Variable
Even if the federal government didn't spend a penny next year, I'm sure our national debt would continue to grow (especially now since there is a possibility that we might be importing all of our cars).

I don't think you understand what the national debt represents, and how it compares to other first world nations.

Our trade deficits with other countries are only going to get more lopsided (if that's even possible).

You might be confusing Trade deficit and Budget deficit. I don't think there is a definite relationship between the two and it's ambiguous at best.

 

[sonambulo]

Spends too much.

This thread would have been better (although still overall a bit crap) if you had added a poll.

 

[cubby1223]

Originally posted by: Random Variable
(especially now since there is a possibility that we might be importing all of our cars).

The auto-bailout didn't happen, and yet the sun still rose today. Go figure.

GM, Chrysler, & Ford will still be in business a year from now.





Oh, and "spend too much".

 

[LegendKiller]

I'd say that 90% of our debt has absolutely nothing to do with the trade deficit.

 

[zephyrprime]

Spend too much. There are 2 things that cost a lot of money in the US budget: entitlements (ss & medicare) and military spending.

 

[piasabird]

Just quit paying out social security, Medicare and Medicaid and they can pay off the debt a lot faster.

 

[dullard]

Originally posted by: zephyrprime
Spend too much. There are 2 things that cost a lot of money in the US budget: entitlements (ss & medicare) and military spending.

There are two items that dominate the rest in size: social security and defense (almost $600 billion each per year).

There are four other large items (over $200 billion each per year): medicare, unemployment and welfare, medicaid, and debt interest.

Nothing else comes even close. Nothing else even reaches $100 billion/year. So, you nailed the spending part: entitlements and military.

Of course, one of the biggest revenues to the government is entitlements. Entitlements comes in big and goes out big. So if we cut entitlement spending, we'll likely cut entitlement collections and it'll mostly be a wash. There won't be much change in the deficit. UNLESS you argue that we still tax for entitlements but don't pay out on them. That will balance our budget, but it won't ever pass. You wouldn't likely get even one vote in congress for that plan.

We could cut military spending in half and still dominate all of the other world powers. That alone would basically balance our budget. Same goes if we could eliminate the interest payments on the debt. Neither would quite balance things, but both would make a major dent in the deficit.

If we eliminated every single program but entitlements and military - each and every small program - we still would just barely break even. That means completely cutting all government employees, energy, research, community development, agriculture, foreign affairs, natural resources, the justice department, veterans benefits, transportation, and education. If we eliminated ALL of those, we could barely afford our military and entitlement spending as it is.

 

[masteryoda34]

Originally posted by: JS80

Originally posted by: Random Variable
Even if the federal government didn't spend a penny next year, I'm sure our national debt would continue to grow (especially now since there is a possibility that we might be importing all of our cars).

I don't think you understand what the national debt represents, and how it compares to other first world nations.

+1 @ JS80

 

[Jhhnn]

Originally posted by: Genx87
If the federal govt magically was able to spend 1 penny it could pay off the debt in about 3 years. Because it is taking in about 3 trillion in revenues every year from taxpayers.

So the bottom line is yes, it spends too much.

Not quite. The govt only takes in ~$2.5T per year, runs deficits of $500T-$700T on top of that. With the debt approaching $12T, it'd take more like 5 years in your fairy tale scenario.