Looking Ahead -
Post - Election Year Issues, 2021
Main Content Pages -
I. This page - National
Debt / The U.S. Economy – ( This page, scroll down)
II. Social Issues –
5. A Look at Illegal Immigration- Detention Centers
The National Debt
Topic 1 - National Debt — The National Debt is a basic Social Justice issue. (see Platform links above and excerpt below)
How much is the National Debt ?
As of August 2020 our National debt was $26 Trillion dollars, including the COVID stimulus packages to date (Sept. 14, 2020). It is 111% of the U.S. economy, more than the total of all our output (GDP).
To illustrate the scale and difference between a million, a billion and a trillion. If one dollar equaled one second of time, -
$1 million dollars would equal 12 days.
$1 billion dollars would equal 32 years.
$1 trillion dollars would equal 32,000 years.
If the National Debt was divided by the population, what would each person owe ?
The Amount of Debt divided per person currently is—
every person living in the U.S. (that is newborn to nursing home).
Per each household the National Debt currently is—
every household in the U.S.
Would the Debt problem be solved if the very wealthy and the rich corporations were taxed at a high rate ?
1, To further illustrate the scale of the Debt, -
If all U.S. individuals / families earning $250,000 or more per year – up to and including all the Billionaires like Jeff Beezos, Warren Buffett & Bill Gates were taxed at 100% of their income, and the $26 Trillion Debt was spread over one year’s time, all that money would cover only 35 days, or, $1.363 Trillion dollars of the total amount, with 330 days of the year remaining.
· Both parties voted to create several stimulus packages as a response to circumstances created by COVID-19, which added over $2 trillion to the Debt as of October 2020.
BBC News report, Friday, Sept. 11, 2020 -
“At a hearing in Washington in June, Jerome Powell, the head of the US central bank, told members of Congress that America's spending path was "unsustainable", but said reducing the shortfall should not be a priority given the state of the economy. Republicans this week put forward a $300 billion proposal for more aid. The plan was blocked by Democrats and failed to advance, with Democrats saying it fell far short of the more than $3 trillion in relief they support.”
The Republicans were arguing, Debt-wise, to be fiscally conscious of the damage these huge costs will inflict on future generations. It will all have to be paid back (see platform excerpts below)..
What will be the impact of the relief packages on top of the Debt ?
From the Republican Platform -
“Our national debt is a burden on our economy and families. The huge increase in the national debt demanded by and incurred during the Obama Administration has placed a significant burden on future generations.
“We must impose firm caps on future debt, accelerate
the repayment of the trillions we now owe in order to reaffirm our principles
of responsible and limited government, and remove the burdens we are placing on
“A strong economy is one key to debt reduction, but
spending restraint is a necessary component that must be vigorously pursued.”
“The Republican path to fiscal sanity and economic
expansion begins with a constitutional requirement for a federal balanced
“We will fight for Congress to adopt, and for the states to ratify, a Balanced Budget Amendment which imposes a cap limiting spending to the appropriate historical average percentage of our nation's gross domestic product while requiring a super-majority for any tax increase, with exceptions only for war or legitimate emergencies. Only a constitutional safeguard such as this can prevent deficits from mounting to government default.”
How Does the Debt Affect Social Security ?
Video – The current Situation of Social Security – 3 minutes
The 2020 Democratic party platform contains an ambitious spending agenda, ideologically driven, socially progressive legal and fiscally unfunded mandates of which trouble many moderates and liberals in their own party ( see party platform), and are demonstrably not supported by at least 50% of the country as seen in the results of the 2016 election.
The debt surged by 41% in Obama's
first 1,012 days in office, ultimately ballooning by about 84% as fiscal 2016 drew to a close. Under Trump, the debt has grown by roughly
15% in three years so far, and the Congressional Budget Office projected that
it could swell by 43% more by the end of fiscal 2024 (due to the Corona Virus
Stimulus Packages in the Democratic-controlled Senate).
What Is The Democrat’s Plan For The National Debt ?
The National Debt is not mentioned or acknowledged in their 2020 Platform.
The National Debt is A Basic Social Justice Issue. What Has Joe Biden and / or Kamala Harris Said About The National Debt ?
Joe Biden has not addressed the National Debt in debate or press conferences, nor has he mentioned the Bowles-Simpson Commission appointed by Pres. Obama during his own vice-presidency. – Video 2 minutes
What was Kamala Harris’ Spending Plan During The Democratic Primary ?
“The Joe Biden campaign announced that he had selected Senator Kamala Harris as his running mate, and, taking into account both his age/rumors of ill health and the fact that Harris was herself a presidential candidate, her opinions matter more than in the usual case in which a vice-presidential nominee is more window-dressing.
He has not addressed the future insolvency of Social Security, and his party’s spending plans, like free college for 80% of Americans, for example, will be paid for through increasingly higher taxes to service the debt plus interest on money the U.S. has borrowed to finance our economy. The Democratic Platform proposes that individual states set up additional retirement savings programs which is an avoidance to fixing our current social security system.”
Note - Harris As President is a Possibility due to Biden’s age and previous health issues, the two brain surgeries in 1988.
“As to Biden’s life expectancy: assuming that he is in above-average health, he has a 10% chance of not surviving to the end of his term. As to dementia, even notwithstanding questions raised by his political opponents, the prevalence of dementia increases with age; there’s no convenient actuarial table but, across all OECD countries, the prevalence increases from 7% for individuals ages 75 - 79 to 12% for those 80 - 84, and 20% for those 85 - 89.”
Excerpt From Forbes Magazine article
Is It Only Republicans Who Object to the Dangerous Spending Levels ?
“The fiscal path we are on today is simply not sustainable," Erskine Bowles said ( Budget director under Bill Clinton). "This debt and these deficits that we are incurring on an annual basis are like a cancer and they are going to truly destroy this country from within unless we have the common sense to do something about it."
Please note mandated wage increases on private businesses, and prioritized increased public / government spending on new social initiatives in the 2020 platform.
The words used throughout the platform – “expand, ensure, support, create, mobilize, develop and increase”, have fiscal consequences. While many of these initiatives have noble intentions, whether agreed upon or not, if passed they all must be funded.
What are the long-term consequences of government printing too much money / increasing money supply to deal with the results of too much Debt ?
The National Debt, the Coronavirus Pandemic and Federal Spending | C-SPAN.org - The consequences of current and election-year campaign-spending proposals with Maya MacGuineas, President for the Committee for a Responsible Federal Budget. They have 91 videos in the C-SPAN Video Library. - Video
Their thoughts on modern monetary theory, which states a government can print money as often as it is in need of more of it.
Between the cost of the National Debt and the COVID Stimulus Packages, what is the Democratic Party’s approach to addressing it ?
What were the results of Pres Obama’s Bowles-Simpson Commission on Reducing the Debt ?
Pres. Obama appointed the Simpson-Bowles Commission to determine how to reduce the Debt and disregarded their recommendations.
Erskine Bowles (Pres. Clinton’s Budget Director) and Alan Simpson, (former Republican Senator) were co-chairs of the commission, discuss their bi-partisan commission’s efforts and what needs to be done.
What are the updated Budget Projections Showing the Fiscal Toll of
the COVID-19 Pandemic & National Debt ? ( June 2020)
Note - Both parties voted to create several stimulus packages as a response to COVID-19, which added over $2 trillion to the Debt.
To illustrate the scale and difference between a million, a
billion and a trillion. If one dollar equaled one second of time, -
1 million dollars would equal 12 days.
1 billion dollars would equal 32 years.
dollars would equal 32,000 years.
* As of August 2020 our National debt was 26 Trillion dollars
Will taxing the rich pay off the National Debt ?
To illustrate, If everyone in the United States that makes
over $250,000./ year, - individuals, dual-income couples, up to billionaires
like Warren Buffet, Jeff Bezos and Bill Gates, were taxed at 100% of
their income, it would total $1.363
If we took 21 trillion (2019 number) and spread it over one year’s time, the $1.363 Trillion would pay for only 35 days. Then what … all the 1% percenters and more are gone.
If there is less tax revenue paid to the Government, more new taxes will have to enacted to pay for all these new proposals.
Unfunded mandates to increase municipal workers wages and services will require additional taxation. Legislative mandates to increase private sector wages will result in higher costs of goods and services for consumers. Any and all programs funded by the Government, meaning the people, will be paid for by the people.
The debt is a promise of future labor. Whose? Our children’s.
Is a Socialist Democracy a more effective system to
fund social programs ?
Video clip - Joe Rogan – The relative merits of Democracy vs Socialism with Naval Ravikant – 8 Minutes
Naval Ravikant is an Indian American entrepreneur and investor. He graduated with degrees in Computer Science and Economics from Dartmouth College.
He is the co-founder, chairman and former CEO of Angel List. As an angel, he has invested early-stage in over 200 companies including Uber, FourSquare, Twitter, Wish.com, Poshmark, Postmates, Thumbtack, Notion, SnapLogic, Opendoor, Stack Overflow, OpenDNS, Yammer, and Clearview AI.
Should Capitalism be ended ? - 5 min. video clip
Bret Weinstein, Douglas Murray
Can government can provide goods and services at no one's expense ?
Video Clip - The Free-Lunch myth – Milton Friedman – 3 minutes
Milton Friedman explores the myth that government can provide
goods and services at no one's expense.
With all the spending proposals in the 2020 Platform, the value of future salaries will be significantly reduced, spending power / value of our income will go down because of the obligations / interest we owe on the National Debt.
The Debt is 111% of the GDP of the U.S. economy
Amount of Debt per person / household currently is—
$72,882 for every person living in the U.S.,
$186,745 for every household in the U.S.
BBC News Report, Friday, Sept. 11, 2020-
“At a hearing in Washington in June, Jerome Powell, the head of the US central bank, told members of Congress that America's spending path was "unsustainable", but said reducing the shortfall should not be a priority given the state of the economy. Republicans this week put forward a $300 billion proposal for more aid. The plan failed to advance, with Democrats saying it fell far short of the more than $3 trillion in relief they support.”
(Please refer to the Video on the National Debt)