5 August 2009, 1:02 pm
I can, and did. The federal budget has never decreased in the last 60+ years that I have found records for, not under Democrats, not under Republicans. (www.cbo.gov). The current budget is $3.4 Trillion. Generally, the GDP grows by 1% or 2% per year. During the 90s we had a huge technology boom and it grew by 3.4% per year. Currently, revenue is projected to be $2.3 Trillion this year, thus, we will have a deficit of $1 Trillion ($3.4T - $2.3T = -$1.1T). Our current total debt is $14 Trillion. So, lets take these number, and see what happens in a "best case scenario". In our scenario the budget will remain fixed at $3.4T (again, this has never happened, but we are using "best case" numbers). Revenue will grow at 3.4% (unusual, but the 90s prove it is possible). Using these figures, it will take 12 years for our revenue to catch up to our expenses (balanced budget). During that time, our debt will grow from $14T to $21.3T. Think about that...the "best case scenario" is that in 12 years we will finally have a balanced budget but will have accumulated $21T worth of debt (6x our revenue of $3.4T). This is the future we will hand to our children. Sadly, this best case scenario is not even possible. As the baby boomers retire, spending on Social Security and Medicare alone will not allow the budget to stay fixed at $3.4 Trillion. In reality, spending and debt will continue to rise. How long can it last before it implodes? So, here is my question: Does math lie? Please check my numbers, you will see they are accurate. Once you verify the math, there is really only 1 question: why would you ever vote for a Republican or Democrat ever again? They have both given us a death sentence. Do you even care?... Read More »
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