Yesterday I watched yet another spoiled College brat crying how secondary education should be “free”, student debt cancelled, and “tax the billionaires” to pay for it. Apparently they don’t teach math in school anymore.
There are a grand total of 540 billionaires in the US controlling assets of 2.4 trillion dollars. If you took all assets away from every one of them and kicked them out into the streets, penniless, you wouldn’t make a dent in the money we already owe largely because of decades of entitlements.
2.4 Trillion would only cover the INTEREST on our $20 Trillion debt for a few years. In 2016 we paid 432.6 Billion dollars in interest on the national debt. And it’s only that low because the Fed has kept interest rates artificially low for much of the Obama administration. That is gradually coming to an end as well. They just had their third consecutive rate hike to try and stave off rapid inflation.
Folks collecting Social Security who are upset about not receiving COLA increases can thank the national debt for that. The SS administration, not China, is the single largest holder of federal debt. Last year was the first time the Ponzi scheme known as Social Security paid out more than it brought in. This means the federal Government not only has to pay interest on that debt but also has to subsidize the difference…by borrowing more money…just to keep the program running. There isn’t enough money to pay recipients so there sure isn’t money for increases.
BTW, if any corporation attempted to set up a pension plan that works the was Social Security does people would go to prison. It’s a scam and always has been. If that money had been instead invested in traditional mutual funds the average retiree would have in excess of $3 million at age 65. Not begging for a slight increase to the pittance Uncle Sam doles out every month.
Cuts are going to happen one way or another. And they are going to hurt. The question is do we start now and manage the pain or do we wait until the bleeding is so severe we have a near total economic collapse?
Most people don’t want to talk about it, or pretend it’s not a problem. We are stealing money from multiple unborn generations and otherwise moral people don’t seem to have a problem with that as long as they get what they want now.
Trump won’t get close to all of his cuts, which is a shame, but he’s the first POTUS who seems to grasp how dire the situation is.
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