The public debt of the United States is about 14 trillion dollars today. If the tax cut extentions had been allowed to expire the budget would have baturally balanced in two years. Since the tax cuts the President anticipates federal budget deficit the next decade at which time it might be reduced to 50% of todays.
By 2015 the public debt will be out twenty trillion, and interest on that debt will be more than a trillion dollars annually. Right now interest on the public debt is about 3/4s of a trillion annually.
President Obama, in order to be responsible needed to be a Harry truman kind of ‘the buck stops here’ guy and veto any tax cuts. With additional federal budget cuts the public debt could have started dropping in 2013. With the tax cuts and a balanced budget, any budget cuts would have enabled direct reduction payments on the debt principle reducing interest payments as well. Adult democratic political responsibility.
The corporate world is already having record profits in many areas. The rich are getting richer. Jobs are being outsourced. Illegal aliens still come and go by the millions. High unemployent will continue for several years. Fundamental national political accountability has been breached with global corporate interests taking precidence. The federal government in 2008 and 2009 bailed out the corrupt rich with trillions of dollars of financial help and left the jobless to twist slowly in the wind.
The employed are making good money and can afford to pay taxes, the unemployed don’t have to pay taxes except from leftover earnings for which they might receive amnesty. The rich need to be taxed at pre-Reagan cut rates.
I write about this issue with pragmatic concern. In Anchorage Alaska there were created 500 jobs net growth in 2010, 1000 new jobs are anticipated in 2011. As a 56 year old out of work painter I have virtually no chance of getting enough work even to leave Anchorage. That means another winter in a tent without propane for coffee,
What about the Alaska permanent fund dividend? In 2010 I had triple hernia laproscopy and ended up paying the surgeon with my future home lot. I was unaware of another 800 dollars owed to the anesthsiologist. I did not get a billing until leaving a seafood processing job in Juneau (because of heavy lifting as much s 200-300 pounds occassionally) and flying to Anchorage. The anesthsiologist turned the debt over to collection agency with a high rate of monthly interest though.
As an out of work Alaskan who rarely earns more than 4500 annually when finding a few homes to repaint the debt is fast becoming impossible to repay. The finance company will garnish the perm fund check each year so I can remain broke camping here annually. At least moose occassionally share the snow camping fun by sleeping like friendly dogs now and then near the tent-excellent social opportunities in Alaska for a U.A.S. alum.
The cost to bankrupty here minimally is about 50 dollars realistically for do it yourselfers. As that surgery was about the only debt or charged item I have taken on the past 23 years I am not happy about not being able to repay the 1500 dollars. The nation does not itself seem to be rationally inclined regarding repayment of its public debt.
A reform of American capitalism is needed as a general an oligharchy, anti-financial monopoly action, low entropy ecological economic are required too, and full employment rather than making America another Mexico or India ruled by elite financial globalists needs to be the goals of a 4th political party in the United States of America.