Wednesday, November 19, 2008

National Debt: A Generational Lesson

Find out our exact current National debt. Name 5 events that lead to this extreme debt, and name some ways individual Americans can alleviate their personal debt and help, "pay down" our overall national debt. Cite your sources.

14 comments:

  1. As of November 19, 2008, the total U.S. federal debt passed the $10.6 trillion mark for the first time, with about $37,316 per capita (that is, per U.S. resident). Of this amount, debt held by the public was roughly $6.3 trillion. Adding unfunded Medicaid, Social Security, Medicare, veterans' pensions, and similar obligations, this figure rises to a total of $59.1 trillion, or $516,348 per household. In 2007, the public debt was 36.9 percent of GDP, with a total debt of 65.5 percent of GDP. The CIA ranked the total percentage as 27th in the world. The Government Accountability Office (GAO), Office of Management and Budget (OMB) and the U.S. Treasury Department have warned that debt levels will increase dramatically relative to historical levels, due primarily to mandatory expenditures for programs such as Medicare, Medicaid, Social Security and interest. Mandatory expenditures are projected to exceed federal tax revenues sometime between 2030 and 2040 if reforms are not undertaken. Further, benefits under entitlement programs will exceed government income by over $40 trillion over the next 75 years. The severity of the measures necessary to address this challenge increases the longer such changes are delayed. These organizations have stated that the government's current fiscal path is "unsustainable."

    http://en.wikipedia.org/wiki/United_States_public_debt

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  2. As of today, November 20, 2008, the outstanding public debt is $10,665,076,346,732.17. That's 10 trillion, 665 billion, 76 million, 346 thousand, 732 dollars and 17 cents. Or roughly $10.6 trillion. Since the estimated population of the United States is 305,125,750, each citizen's share of the debt is $34,953.05. Since September 28, 2007, the National Debt has continued to increase an average of $396 billion per day. The total outstanding public debt since September 11, 2001: $5.7 trillion. The total debt has increased over $500 billion each year since 2003, considering both budgeted and non-budgeted spending. The annual US budget deficit declined from $318 billion in 2005 to $162 billion in 2007, but increased to $455 billion in 2008. Since 2002, the deficit reported by the media has been significantly less than the annual change in the debt, which surpassed $1 trillion for the first time in 2008.Thanks to programs such as Medicare, Medicaid, Social Security and Interest, the debt levels will increase dramatically relative to historical levels. Mandatory expenditures are projected to exceed federal tax revenues sometime between 2030 and 2040 if reforms are not undertaken. The US debt in the hands of foreign governments is 25% of the total. In total, foreign lenders from Japan and China held 47% of the foreign-owned debt.
    One of the main reasons why we are in so much debt is because of the money spent on the military all around the world. For 2009, the budget rose to $515.4 billion with a total of $651.2 billion when emergency discretionary spending and supplemental spending are included. Not a single penny of that money is included with nuclear weapons research, maintenance and production, veterans affairs ($33.2 billion) or the wars in Iraq and Afghanistan. The US government is currently spending at the rate of approximately $1 trillion per year for all defense-related purposes.


    source: http://www.brillig.com/debt_clock/

    http://en.wikipedia.org/wiki/Military_budget_of_the_United_States

    http://en.wikipedia.org/wiki/United_states_public_debt

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  3. sydney1&hayley1November 19, 2008 at 8:20 PM

    As of November 19, 2008, the total U.S. federal debt passed the $10.6 trillion mark for the first time, with about $37,316 per capita (that is, per U.S. resident). Of this amount, debt held by the public was roughly $6.3 trillion. Adding unfunded Medicaid, Social Security, Medicare, veterans' pensions, and similar obligations, this figure rises to a total of $59.1 trillion, or $516,348 per household. In 2007, the public debt was 36.9 percent of GDP, with a total debt of 65.5 percent of GDP. The CIA ranked the total percentage as 27th in the world. The Government Accountability Office (GAO), Office of Management and Budget (OMB) and the U.S. Treasury Department have warned that debt levels will increase dramatically relative to historical levels, due primarily to mandatory expenditures for programs such as Medicare, Medicaid, Social Security and interest. Mandatory expenditures are projected to exceed federal tax revenues sometime between 2030 and 2040 if reforms are not undertaken. Further, benefits under entitlement programs will exceed government income by over $40 trillion over the next 75 years. The severity of the measures necessary to address this challenge increases the longer such changes are delayed. These organizations have stated that the government's current fiscal path is "unsustainable."

    http://en.wikipedia.org/wiki/United_States_public_debt

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  4. As of November 20, 2008 at 6:27 minutes the United States national debt in dollars was 10,665,777,843,158.97 dollars and counting. The estimated population of the United States is 305,126,814 people, if you divide out the debt equally, each citizen would have to pay over 34,995.23 dollars. Everyday the debt increases 3.96 billion dollars.

    "According to the Treasury, the national debt has grown more than $500 billion each year since fiscal year 2003. The $700 billion government bailout could send the national debt to more than $11 trillion, says the AP."(Quote from the US news)

    What began to put us over the top for this extreme debt was September 11. It took millions to pay for all the buildings that were destroyed, not to mention the roads that were ruined and the lives that were lost. Then president Bush came into the presidency, and drove us into the wars in the middle east, that we are still spending billions of dollars on today. The housing crisis began to unfold. Some of the house prices were beginning to go up and people began to buy properties in order to gain a little extra money. Now most of those Americans cannot buy a house, they have very bad credit because they could not pay for the houses they bought, either because they are now bankrupt or owe more money than the house is worth, the houses have decreased in value. The unemployment rate began to rise as well, there was less money to go around, and less jobs offered. The businesses have gone bankrupt and now there are now even less jobs to go around. Like Justin, Kyle, and Emily have stated Unfunded programs like Medicare and Medicaid, have added more money to the already expensive debt. We also owe many countries money, so we need to find a way to pay it all back.
    We as citizens could spend less money, and recycle more often, which would leave less of an affect on the world causing us to not spend as much money trying to fix the world. We can also try writing letters to our people in Congress and the President telling them to try to spend less money on issues that are not affecting us, starting with getting the US out of the Middle East this would cut our costs dramatically. Trying to use solar power would also help us waste less electricity, and taking shorter showers, would put more money in our checkbooks.

    http://www.usnews.com/blogs/new-money/2008/10/09/maxing-out-the-national-debt-clock.html
    http://www.brillig.com/debt_clock/

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  5. Our exact current national debt is 10,657,406,830,559,8. Yes that is 10 trillion,657 billion,40 million,830 thousand,559 dollars and 28 cents or 3.6 trillion! Wow now that is a number. The events that led up to this number all started when we got attacked on September 11. We had to reconstruct all those buildings and roads, then we had to send our troops to Iraq, which we are paying huge amounts of dollars to this day. Then the housing market completely failed. We are at rock bottom with the housing market. Also our credit is at an all time low and our surplus. Due to this debt we have unfunded programs like Medicare, Social Security, and veterans' pensions adding on to the national debt. The total debt has increased over 500 billion each year since 2003. We are such in a deep hole right now with the economy and everything and it all points at our rpesident George Bush. We are going to be completely bankrupt soon and become a third power country. I don't think Americans can do much to help out except maybe stop using their credit cards or something. Everyone is telling us to stop using money but we need to, we can not live without spending, it is just impossible. We just need Wall Street to get back on track but also we as citizens have to change our habits and help out. We could cause change if we really try hard and think of the nation first.

    "As of November 19, 2008, the total U.S. federal debt was $10.6 trillion.[2], with about $37,316 per capita (that is, per U.S. resident). Of this amount, debt held by the public was roughly $6.3 trillion.[3] Adding unfunded Medicaid, Social Security, Medicare, veterans' pensions, and similar obligations, this figure rises to a total of $59.1 trillion, or $516,348 per household.[4] In 2007, the public debt was 36.9 percent of GDP [5], with a total debt of 65.5 percent of GDP.[6] The CIA ranked the total percentage as 27th in the world".

    Source: http://en.wikipedia.org/wiki/United_States_public_debt

    http://brillig.com/debt_clock/

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  6. Our National Debut is totaled around $10,659,954,716,319.84
    This fourteen digit figure is astonishingly high!
    The estimated population of the United States is 305,137,559, so each citizen's share of this debt is $34,934.88.

    One reason why we are so far in debut is because of the amount of money we have spent on the war over seas in IRAQ. First, we must pay for all the equipment used by the soldiers, their humvees, their helmets and gear, and all of the weaponry they need. When Bush decided to go to war around Congresses back, he did not plan out a budget for Iraq, nor did he make sure that the materials being used in that environment and climate were appropriate. The result was that the hummers and equipment that the soldiers were given, were not sufficient and did not function properly in the desert climate. Bush had to give even more money to repair all the things they needed.

    It is very important that congress and the president have an open and reliable relationship because they are the ones who use our taxpayers’ dollars to pay for federal needs. If they do not have an open relationship, one goes behind another’s back and creates pandemonium.

    Another reason why our nation is in debut is because we spend more than we make. As a nation we all don’t have money up front, so we rely on credit to buy us the things we need or want and pay for it later when we have the money and the interest to pay it off. If the country spends money for a $3 billion dollar project and do not have the money to pay it off, we cut money or budgets from other programs to pay it off. The value of the dollar is lessened when the general price level rises; each unit of currency buys fewer goods and services.

    We also import very large amounts of fuel and consumer goods from over seas. This is necessary for our economy and for all of the people who live in this country because many of the ever day things we use come from across the world, such as fuel, clothes, food and toys. It is very expensive to import goods because each country imposes an import tax. As well, the United States exports goods, like all other countries, but we simply don’t export enough goods to compensate for the amount of goods we import. This causes debut and then we need to make money in other aspects to pay for the loss.

    Lastly, our nation spends and needs a lot of money to pay for programs such as social security, public assistance, and various other social programs that benefit our nation’s people. The American population is very large and we simply do not have enough tax dollars to cover these expenses.

    Some ways to alleviate personal debt and help, "pay down" our overall national debt are to live within our means. Stop borrowing money to buy consumer goods, such as TV’s, cars, and clothes. Quit using CREDIT! Use money you physically have and pay for things up front so it is immediate ownership and it is paid off. Compounded interest builds up over time and the product that you thought was $10.99 is $20 more!

    http://en.wikipedia.org/wiki/Inflation


    http://www.brillig.com/debt_clock/

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  7. As of November 24, the U.S. federal debt was over $10.6 trillion. The amount of debt that the public holds is about $6.3 trillion. Part of the $10.6 trillion is $37,316 per capita (that is, per U.S. resident).

    Some things that put us where we are were the terrorist attacks on September 11. New York was falling apart more than the rest of the U.S., but that did not stop the whole country from hurting. This has cost us a bit of money to repair things. Then President Bush put our troops into Iraq. That is costing us on a daily basis. Now the businesses are going bankrupt because our economy was struggling recently. That is costing people to loose jobs. This is costing them, because now they can not afford everything that they need.

    Source: http://en.wikipedia.org/wiki/United_States_public_debt

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  8. Our national debt is $10,668,170,830,858and United States population is about305,156,161 which means each citizens share of this debt is $34,959. Things that could have caused this debt would be all the wars we have been in such as the Vietnam War, Cold War, and Iraq. President Bush is pouring money into the war in the middle east. Our recent bank bailout only adds about 1/11th to this debt.

    source-http://www.brillig.com/debt_clock/

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  9. Mitchell and Brie O'Connor 1November 24, 2008 at 11:15 PM

    The national debt has risen to over 10.6 TRILLION dollars!That's 12 zeros! That averages out to be around 37 thousand per person. So essentially, one only has to work roughly one year, donating 100% of their salary to the government to repay our debt. The downside to that is that by the time that happened our debt would probably have quadrupled. Communism doesn't seem so bad now, does it?

    One major contributor to our debt is the war in Iraq. That little booboo costs us trillions. Another is our less talked about wars in south America and in Afghanistan. Those are quite a doosey to our debt, also. The plummeting stock market (or should i say plummeted past tense) hasn't helped matters either. Our decrepit economy is limping on its last leg, and with an end out of sight, we are looking at some serious problems. I think it would be best if we all start taking Chinese classes!

    http://en.wikipedia.org/wiki/United_States_public_debt

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  10. Our national debt has risen to over a 10.6 trillion now and is continually rising with each passing day. Efforts now are being made to ensure that our economy is not failing, when really its flailing with open arms down a stairwell. The Iraq war has taken a big chunk out of economy, and has led us even deeper in debt. Perhaps the personal vendetta against Iraq, has led Mr.Bush to follow in his dad's footsteps, but nothing is certain. Now bailout plans are being put into action to bail out the companies that dug their own ruts in credit cards and little to none down payments on the money they were basically handing out. The bailout has contributed significantly to our debt, the problem is it isn’t over. The Automotive industry is now declining, and it is rumored its going to need a bailout of its own, yet we don’t have the money to cover the expenses, so it will plummet us further into debt. We will need to borrow more funds from outside sources and it will become a never ending cycle until, although fairly cynical, another World War ensues. Our country was free from the Depression when World War II hit and created a boom in jobs all over the nation. Let me say this, I do not want another World War, because then all hell will break loose and there is a slight possibility that it may pummel us more into debt. Hopefully with Obama’s realistic view on the economy he can pull us out of the mess the CEOS, Banks, Bush and others have caused to our great nation that is now in dire need of help.

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  11. Our National debt is now 10.6 trillion dollars and it is rising every day. One reason could be that we are in the middle of a war that is causing us billions of dollars when this war should have never happend. Another reason would be bad judgement and over spending on many bills that are unecessary to the U.S. The Government did not foresee the possibility of another economics collapse forcing us to borrow from other countries. another reason would be our helping many countries. I think that it is good thing to have good relations with other countries but we must worry about our own problems because if we don't fix this problem now we could face an even greater challenge in the upcoming future.


    http//:en.wikipedia.org/wiki/United_States_public_debt

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  12. As of November 26, 2008, our total federal debt was $10,647,917,555,364.39. Starting September 30, 2008 until 23 days later, the federal debt soared $500 billion more, passing the $10 trillion mark for the first time in history in the shortest amount of time on record. The main reason for the large increase in the national debt has been the federal response to the economy. From the recent $700 billion bailout to $124 billion used to bail out AIG, the worsening economy and stock market and Wall Street crashes have all added to the national debt. Another costly event going on right now is the Iraq War. We have been spending millions of dollars more every month in Iraq than Afghanistan, where the real terrorists from 9/11 are. As a result, many people have been against the war for years.

    http://www.treasurydirect.gov/NP/NPGateway
    http://www.cbsnews.com/stories/2008/10/31/politics/main4562416.shtml

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  13. Lexi 1, Michelle 1December 1, 2008 at 8:26 AM

    Our national debt is 10,666,310,268,263.53.
    Debt incurred by the central government of a country to its own people and institutions and also to overseas creditors. A government can borrow from the public by means of selling interest-bearing bonds, for example, or from abroad. Traditionally, a major cause of national debt was the cost of war but in recent decades governments have borrowed heavily in order to finance development or nationalization, to support an ailing currency, or to avoid raising taxes.
    Government budgets are often planned with a deficit (shortfall) that is funded by overseas borrowing. In the 1980s most governments adopted monetary policies designed to limit their borrowing requirements, both to reduce the cost of servicing the debt (paying off the interest), and because borrowing money tends to cause inflation.

    Resource : http://www.tiscali.co.uk/reference/encyclopaedia/hutchinson/m0010965.html

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  14. Lexi 1, Michelle 1December 1, 2008 at 8:37 AM

    Pro: legislators can find out about topics that perhaps weren't in their area of expertise. Lobbyists can educate and inform, and often provide valuable information for legislators.
    Con: Lobbyists can end up turning our legal system into a system where money purchases both access to legislators and purchases laws.
    “Sen. Barack Obama’s refusal to accept donations from federal lobbyists is a centerpiece of his White House bid, but lobbyists still advise the Democratic front-runner and volunteer on his campaign, underlining the enduring connection between special interests and politicians.” (Mary Jacoby, “Obama Campaign Enlists Lobbyists,” The Wall Street Journal, 3/1/08 )

    Reference: http://wakeupamerica.blogivists.com/2008/09/16/talking-points-obama-and-lobbyists/

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