Current National Debt

     Our national debt ceiling has gotten ridiculous and from the looks of it, not going to get any better in the future.

"WE THE PEOPLE" OF THE UNITED STATES OF AMERICA ARE
THE ONES PAYING THE DEBT CREATED BY THIS GOVERNEMNT!

    One of the main culprits, "is consistently overspending" by our government. The federal government spends more than its budget that it creates a deficit.

    In the fiscal year of 2023, Our government spent roughly $381 billion "more than it collected" in revenues. Let that sink in!

    To pay that deficit, the government borrows money from federal income tax you pay in, which a budget deficit results. 

    To pay for this deficit, the "federal government borrows money" by selling marketable securities such as Treasury bonds, bills, notes, floating rate notes, and Treasury inflation-protected securities (TIPS.)

    There are three primary drivers of the overall growth in spending that can be managed: 

                1. America's aging population
                2. Rising healthcare costs, and
                3. Rapidly escalating interest costs

Looking at overspending:  

    Overspending is spending more money than one can afford. Our government is doing exactly that which is a common problem when easy credit and "Your Tax Dollars" are available. 

    The term overspending is also used for investment projects when payments exceed actual calculated cost.

Breakdown:

    Let say, a person working makes $80,000 per year, the physical budget. Why would you buy a $300,000 home? A 30 year loan with a 4.5% APY. 20% Down payment?

            1. Home Amount $300,000 Down: $60,000

            2. Home Amount $100,000 Down $20,000

            3. Home Amount $80,000 Down: $16,000

Looking at the examples:

 We can see what "deficit" means in terms. In example: "1," 

     Your annual income of $80,000, you're paying down $60,000 leaving $20,000. The down payment is 75% of your income. 

    Your mortgage monthly payment is $1,519,752 verses your income which is a negative 1899.69% or $1,439.752 over budgeted income. 

 In example 2. 

     Your annual income of $80,000, you're paying down $20,000 leaving $60,000. The down payment is 25% of your income.

     You're mortgage monthly pay is $405 which is 51% or 6.08% annually of your income.

 In example 3. 

     Your annual income of $80,000, you're paying down $16,000 leaving $64,000. 

     The down payment is 20% of your income.You're mortgage monthly pay is $324 which is 4% or 4.86% annually of your income. 

The current level of Monthly Expenses:

Housing	$2,120	31.80%	$25,440
Transportation	$1,098	16.47%	$13,176
Food	$832	12.48%	$9,984
Personal insurance
and pensions	$796	11.94%	$9,552
Annual  miscellaneous	$334	5%	$4,000
Mortgage payment	$324	4.86%	$3,888
Payroll Taxes	$928 ($214 WKLY)	1.41%	$11,128
Annual Income	$6,154 ($1,539 WKLY)	7.69%	$80,000
Annual Expense	$5,503	96.46%	$77,168
Annual Net Income	$236 ($55 WKLY)	3.54%	$2,832

    

    ONE CAN NOT LIVE above their income. YET, this Government is doing exctly that! More than two-thirds of revenue come from two taxes - sales and use tax and franchise and excise tax. Who pays these taxes?

"WE THE PEOPLE OF THE UNITED STATES!"

    Taxes provide revenue for federal, local, and state governments to fund essential services like defense, highways, police, a justice system (if you want to call that) that benefit all citizens. But very effectively the same citizens, "Are the ones paying it."

    Remember, Joe Biden during his miserable 4-year term, provided approximately $61.4 billion assistance, and approximately $64.1 billion to Ukraine for a total of $125.5 billion. And again The $95 billion measure includes assistance to Ukraine, Israel and Taiwan.

    Biden's Infrastructure Investment and Jobs Act was signed into law in November 2021 and contains about $550 billion in additional investment, to repair infrastructure like roads, bridges and water pipes and expand passenger rail and broadband.

    Yet, the House Republicans wants to cut Social Security? US Senate committee wants to raise retirement age? 

    Report finds that Social Security benefits would be cut by an average of 13 percent if the Republicans' plan were fully implemented. Social Security's trust fund could run out of money as soon as 2033, resulting in a $16500 annual benefits cut, experts warn. Democrats have called for · Lift the payroll tax cap · Boost in benefits and changes to the COLA formula.

    YES WE ARE IN TROUBLE! This government "Is out·ra·geous·ly Spending Your Tax Dollars" and YES, we're the ones suffering from it. 

    Do you known that Domestic investors, including the Federal Reserve, own around 70% of the U.S. debt? And the remaining 30% is owned by foreign investors and intragovernmental holdings?

    As of January 2, 2025, each person "in the United States" has a share of the national debt of $106,024 based on a federal debt of $36.2 trillion which is now $36.5 and rising fast.  

    Out-of-control spending in Washington is burdening each American with large and growing levels of public debt. Debt per capita in dollars by share of federal debt for child born:            

            2024: Child Born:      $82,590
            2040: Age 18:            $143,964
            2050: Age 30:            $209.707

of publicly held federal debt upon becoming an adult. Is this sinking in yet?               

 

    Have you figured out why this economy is in the mess it's in now?