Archive for December, 2009

Per Capita Debt

Tuesday, December 22nd, 2009
per capita debt

This article addresses the Per Capita Debt calculation of the United States National Debt.  As I write this article, the National Debt is approximately $12.1 trillion according to the Treasury Department.  According to Census Bureau estimates, there are approximately 115 million households in the United States with a total U.S. population of 308 million.

So using the above figures from the U.S. Government, we can calculate the following per capita debt figures. Read the rest of this entry »

The Debt Solution – A Proposal to Reduce the National Debt

Tuesday, December 22nd, 2009
the debt solution

What is the debt solution when it comes to America’s national debt?  We hear our politicians talk about the “need” to reduce our national debt, but month after month the federal government debt keeps rising.  The counter below gives an approximation of the national debt at this very moment.  I think you’ll notice it’s going UP, not down! Read the rest of this entry »

Deficit – Debt: What’s the Difference?

Tuesday, December 22nd, 2009
deficit debt

Deficit….Debt.  Are they the same thing, and if not, then what’s the difference?

The terms National Debt and Budget Deficit can be very confusing when it comes to discussing United States government spending.  The terms often get used interchangeably, but they are not at all the same thing.  Even among politicians and news reporters, it’s not unusual for them to refer to the National Debt when they are really talking about the Budget Deficit, and vice versa.  So in this post, I want to explain the difference between the two terms. Read the rest of this entry »

Social Security Insurance – A Crisis Looms

Tuesday, December 22nd, 2009
social security insurance

A crisis is headed our way in Social Security Insurance.  For years, we’ve been hearing that the Social Security Trust Fund would run out of money. The recent economic recession only worsened the outlook for Social Security Insurance.

According to current projections by the trustees responsible for the Social Security Trust Fund, the Social Security program will begin to pay out more benefits than in collects in taxes beginning in Read the rest of this entry »

Debt – Why Are We Addicted To It?

Tuesday, December 22nd, 2009
debt

Why are we addicted to debt in America?  We go into debt to buy our cars; we borrow money to finance our college education; we get mortgages to buy our houses; we use credit cards to pay for our everyday expenses.  It seems like every time we turn around, we are taking on more and more debt.

Our federal government is in on the act too.  The government debt is over $12 trillion, and growing rapidly.  We have become a nation totally dependent on debt to function.

I don’t mean to imply that all debt is bad.  Used wisely, debt can be an important tool.  For example, most Americans Read the rest of this entry »

Federal Government Debt – A Brief History

Tuesday, December 22nd, 2009
federal government debt

The United States has had Federal Government Debt virtually every year of its existence as a nation, beginning with the money borrowed to finance the Revolutionary War.   Shortly after the ratification of the U.S. Constitution, the federal government debt was reported as $75 million. 

There has really been only one brief period in our history when the federal government debt was totally eliminated.  In 1835 under President Andrew Jackson, the national debt was reduced to zero, but it quickly grew into the millions again after that.

The first dramatic increase in federal government debt Read the rest of this entry »