What the US really owes

Here is a useful quote to remember:

One way the Peterson Foundation wants to change that is to bring big numbers down to earth so people can comprehend them. "Our $56 trillion in unfunded obligations amount to $483,000 per household. That's 10 times the median household income—so it's as if everyone had a second or third mortgage on a house equal to 10 times their income but no house they can lay claim to." As for this year's likely deficit of $1.8 trillion, Mr. Walker suggests its size be conveyed thusly: "A deficit that large is $3.4 million a minute, $200 million an hour, $5 billion a day," he says. That does indeed put things into perspective. . . .



Blogger Scubafox said...

Indeed, "free market" "free trade" policies have destroyed the US economy. See "Jobs & 'Trade' Data Update Jun09, 8/2/09" http://tinyurl.com/ll9vru.

Heard you on Hartmann program. The half-baked "free market" fails in many ways: Invisible Hand Drops Ball & Economics 101 http://tinyurl.com/c8nlrc ... in many cases, for "market forces" to function requires government involvement.

9/07/2009 7:15 PM  
Blogger TooMuchTime said...

I'm sorry, Scubafox, but you're wrong. It only looks like the free market has done the damage. Government interference has caused the problems.

The reason the jobs are going offshore is because of nothing more than costs. Manufacturing will always chase the lowest wages. If some other country shows that they have technically proficient workers for a cheaper price than India, those jobs will move there. And India will try to protect those jobs with massive socialist regulations.

If gov't institutes a socialist income tax, then costs go up. The businesses don't pay the tax, the customers do. (Remember, no business pays any tax. They have a tax burden but their customers pay the money in either higher prices or lower wages.) However, there is still a cost to business. Administration, regulation, etc. The best way to ensure a free market is to get rid of the income tax. A flat tax, or better, the FairTax, would go a long way to ease the jobs going offshore.

9/08/2009 1:43 PM  

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