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Originally posted by SeekerofTruth101
Simplified:- (hopefully, so that more may understand)
Amercia's debt is close to 100% of 1 year's GDP - $15 trillion.
Annual Debt interest as on 2010 - $414 billion.
US tax revenues collected 2010 - $2.16 trillion (18.3% of GDP)
US budget 2010 - $3 trillion.
From the data, you will see that:-
1. The annual debt interest is not as killing as believed, as the tax revenues will be more than able to cover those debts.
2. However, looking at the budget, USA spent more than it collected from tax revenue, but that's because of wars, bailing out banks as well as not taxing the rich, thanks to republicans and the moron Bush.
3. Once wars are ended, taxes increased, spending rationalized and more fine tuned, and economy for tuned for tech innovation and productivity, that debt interest will not be an issue.
4. The entire $15 trillion debt is NOT due tomorrow or the next day. It is only payable when it matures, and most certainly the entire sum will not mature at the same time, which can be rollover with new debts when it comes, for USA has a wealth of not only mineral resources, but innovative human capital as well.
Thus, the panic is not over the debt, which will see it dropping once the economy is humming again. The panic lays with NOT spending, for if there is no spending, there will be no growth, and with no growth, there will be NO tax revenue, and with no tax revenue, there will be spending and NO money to pay interest on debts, let alone the debt itself.
Originally posted by camaro68ss
collected 2010 - $2.16 trillion (18.3% of GDP)
What about Italy, Spain, and Greece? They tax the rich, they don’t have wars and have all the handouts and entitlements you could imagine. How’s that working out? Did you know if you liquidated all of the nations assets, 78 Trillion dollars worth, you still would not cover the unfunded liabilities and national debt. So answer my one thing, how is taxing the rich going to fix this if by confiscating all there wealth would not even cover all costs? You need to cut spending and entitlements.
A liberals worst enemy is the truth.