Archive for December, 2009

Health Care Reform and the Debt

Thursday, December 24th, 2009
health care reform

Health Care Reform is a worthy goal, and most Americans agree that some type of health care reform is needed.   But can our nation afford President Obama’s version of health care reform?  What will it do to our budget deficit and national debt?

Official projections are that it will reduce the budget deficit and the national debt because of cost savings and efficiencies.  In this article, I want to put forth an opposing point of view.  I believe that this health care reform will ultimately prove to cause dramatic increases in the budget deficit and the national debt.  There are two reasons I believe this. Read the rest of this entry »

Government Debt – Why Is It Growing So Fast?

Tuesday, December 22nd, 2009
government debt

Today our U.S. Government Debt is growing faster than at any time in our nation’s history.  But why is our government debt growing so fast?

The answer lies in how our federal budgeting and spending process works.  Each year, Congress and the President approve a budget that consists of government tax receipts and government expenditures.  If the tax receipts exceed the expenditures (this never happens anymore), then we have a budget surplus.  If the expenditures exceed the receipts Read the rest of this entry »

Debt Free – Can We Pay Off Our Federal Government Debt?

Tuesday, December 22nd, 2009
debt free

Debt Free…..what a concept!  With our Federal Government Debt now in excess of $12 trillion, is it realistic to think that the United States can ever be debt free again?

The short answer is “probably not”.  The United States has had a national debt since the days of the Revolutionary War, with the exception of one brief period.   In 1835, under President Andrew Jackson, the national debt was totally paid off, and for a brief period, the United States was debt free.  But our federal government Read the rest of this entry »

Deficit – What Is It and How Much Is It?

Tuesday, December 22nd, 2009

 

deficit

So what is the deficit anyway?

Each year, Congress and the President approve a budget outlining projected tax revenues for the year and projected expenditures for the year.  The Budget of the United States Federal Government is a massive document detailing taxation and spending in the trillions of dollars. 

If budgeted tax revenues exceed budgeted expenditures for a given year, then the federal government is said to have a budget surplus for that year (this is rare).  If budgeted expenditures exceed budgeted tax revenues, then the federal government is said to have a budget deficit for that year (this is normally the case). 

When there is a budget deficit, the federal government has to Read the rest of this entry »

Medicare Insurance – A Crisis Looms

Tuesday, December 22nd, 2009
medicare insurance

A crisis looms on the horizon for Medicare Insurance.  For years, we’ve been hearing that the Medicare Insurance Fund would run out of money, and the recent economic recession has only worsened the outlook for Medicare.

According to current projections by the trustees responsible for Medicare, the Medicare Hospital Insurance program will run out of money in Read the rest of this entry »

National Debt – How To Understand It

Tuesday, December 22nd, 2009
national debt

National Debt can be a pretty confusing topic to the average American.  We hear news reports about the National Debt and the Budget Deficit, but most people aren’t totally clear about what those terms mean.  Most people know that we have a big national debt, and they assume that’s not a good thing, but that may be just about all they understand about the topic.  If you find yourself getting confused about the National Debt, this post is intended to help you understand it in very simple terms.  Read the rest of this entry »