Why do politicians always talk about the deficit?
They always talk about the deficit, yet none of our candidates are offering solutions to reduce it.
But why is the "deficit" important? Why don't they talk about what will happen to us once our national debt is way too high? That's where we are going whether you vote Rep or Dem.
Why don't they mention anything about the national debt's future crisis?
- 7 years agoFavorite Answer
The deficit is spending that exceeds our income, our revenues, and the INTEREST on both our deficit and our national debt is COMPOUNDED, which is where the problems lie.
Our national debt, however, is comprised of external debt (dollars owed outside our borders) and internal debt (held by individuals, lending institutions, or others within U.S. borders). According to Paul Toscano of CNBC.com: "A useful measure of a country's debt position is by comparing gross external debt to gross domestic product (GDP). By comparing a nation's total debt to what it products (the GDP), this ratio can be eused to help determine the likelihood that a country as a whole will be able to repay its debt.
This is where the successful policies of the Obama administration come into play (see whitehouse.gov and recovery.gov), because our manufacturing jobs base is being rebirthed through the President's focus on his "green energy" technologies initiative, with more than 30 U.S. states that now have new or refurbished manufacturing plants which make renewable-energy produts for use here and also for export to global markets, thus INCREASING our GDP to offset the level of our debt, both domestic and external (read Michael Grumwald's "The New New Deal: The Hidden Story of Change in the Obama Era"). The Obama team has also worked to have China's trade deficit with the U.S. slowy, but steadily reduced, and to have China stop manipulating the value of their yuan currency in ways that are detrimental to the value for the U.S. dollar---all factors in dealing with both debt and deficit.
Right now, even though our economy is the largest by far in the world and our debt-to-GDP ratio is also largest, we actually rank 20th among the 75 wealthiest nations in debt, with Ireland and Iceland being at the bottom and the UK in deep doodoo. Making the changes needed involves generating more revenues and also doing a very targeted reduction-in-spending approach that does not further SHRINK an already damaged and fragile economy. Democrats have historically been better at focusing on consumers and on fixing the devastations caused by always-fail trickle-down and deregulation policies of the GOP...so if you want deficit reductions (and also a SURPLUS, like we had thanks to President Bill Clinton's wise fiscal policies), then VOTE DEMOCRATS.
- Spock (rhp)Lv 77 years ago
it's too scary for the voters. good heavens, we might have to actually cancel programs and cut entitlements in order to get the debt under control -- or else enact crippling taxes.
much easier to take the traditional way out -- print so much money that the assets of the middle class are destroyed and the 'debt' becomes relatively small -- that this would require suspending the inflation provisions in the entitlement programs is something that's not mentioned.
eventually, you'd have the situation where Medicare/Medicaid/ObamaCare is ignored by all because there are no health care providers who'll accept the paltry sums they offer as compensation. Social Security will pay a pittance, relative to the cost of living, pensions will similarly be savaged, and there'll only be two classes -- the wealthy and the poor.
our leftists hope this situation starts happening -- it might trigger the change they want to scrapping the Constitution and socialism [with them in charge, of course].
we shall see.Source(s): grampa
- SteveLv 77 years ago
The debt is already way too high. The deficit the the amount the goverment over spends and adds to the debt every year.
- standiferLv 43 years ago
If the federal authorities authorities had no longer grown speedier than GDP for the only genuine 50 years i ought to agree elevating taxes on all must be mandatory. yet at the same time as treating a affected man or woman in case you fail to quit the bleeding (wasteful spending) you could pump in each of the plasma (new taxes and borrowing) you pick yet you'll run out of plasma and in case you not in any respect get round to preventing the bleeding the affected man or woman (u . s . a . of america) will die on the table. also all this talk about the tax expenses being decrease in the present day is hilarious. we've extra state taxes extra community taxes and extra federal taxes on each little thing from our phones (land strains, cellphones, and satellite tv for pc telephone) television carriers ( Cable and Dish (please do no longer supply me the line about free broadcast television the flow to digital transmitters has wiped out provider for tens of millions of human beings that now ought to get cable or get no television. gas taxes. FICA Social safe practices. shall we only say they have got here upon procedures to get what they pick and although in the experience that they do no longer they spend what they do no longer have. If this develop into 15 years in the past i ought to assert supply your way a attempt yet after six years of the supposedly fiscally to blame republicans completely controlling the legislative and authorities branch (as a word maximum democrats voted to grant the president the means to apply defense force stress in Iraq) and extending the deficit a million.5 cases via timber very last 2 years with a democratically managed homestead and senate it were doubled (a lot for all those blue canines elected to herald economic restraint). President Obama with a democratic homestead and Senate has doubled the projected deficit in 2 years (and it does no longer even count number the billions given to Fanny and Freddy is that clear or what?). So until eventually the federal authorities proves it may and does decrease all wasteful spending i visit vote adverse to all people who will develop taxes. both democrats and republicans have had opportunities to diminish waste yet have did not attain this. now must be the time to quit the bleeding because we are out of plasma.
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- Anonymous7 years ago
Well believe it or not, most of the national debt, is money we owe ourselves. Nearly $5 trillion of the $16 trillion owed, is intragovernmental holdings, which is the Social Security/Medicare/Road tax surplus trust fund
Another $2.5 trillion or so, is owned by the Federal Reserve. Yet at least that much is owned by Americans in their IRA/401K/pension trust funds, and mutual funds holdings.
I know everyone says China owns America's debt, but the truth is, they and Japan each own less than 10% each http://www.treasury.gov/resource-center/data-chart...
We borrow at about 1.9% interest on average. And are not going to foreclose on ourselves anytime soon. The biggest problem is we are only producing GDP growth of 1.2%. Getting that up to 4%, where it should be by now, will solve a lot of problems
- Alvin ColmesLv 77 years ago
Nonsense, Mitt Romney/Paul Ryan has a plan, Obama has none. hehehe