12:15 AM
OGB community
When most people hear of the National Debt they think of the fact that the US has pretty much had debt for as long as it has been around. Although true here is why it is a ACTUAL problem. In terms of our spending since 1965 our interest payments on the debt have gone from 6% to 18% of total spending. 14% of our spending is on National Defense, down from 49% in 1965. Anti-poverty programs account went from 3% to 14% and then all other spending (education, science, natural resources, health, transportation, energy, community, etc) went from 28% down to 18%. So for those who are so concerned with education and other above mentioned categories, would it not be considered favorable to have the money we allocate to paying for the interest on the debt to use on other important areas of our Country?
Okay so now we know how much of our spending is spent on the interest of our debt. Now, when he had lower total debt, investors would buy it at reasonable interest rates. As our debt has exploded, so too are the interest rates at which it will be paid back. By 2020 it is expected to cost us 20% of our total spending. This will now take away our ability to spend elsewhere and because social security, medicaid, and medicare are all under mandatory spending, they cannot be cut or reduced in any budget. They are literally fixed with a formula that decides who can collect from it and how much and then it goes from there leaving no control over that part of the budget. This leaves us with national defense, education, and all other miscellaneous expenditures that fall under discretionary spending (budget is decided not fixed), and thus take a hit.
We spend $31.1 billion a month on interest payments while spending $46,8 billion a YEAR on education. This should really start to him home after viewing what our debt costs us NOW. It is not some deferred loan that we can pay back when the economy is booming. It is real money that costs us now and is only going to get more expensive as we fall further into debt.
Okay so now we know how much of our spending is spent on the interest of our debt. Now, when he had lower total debt, investors would buy it at reasonable interest rates. As our debt has exploded, so too are the interest rates at which it will be paid back. By 2020 it is expected to cost us 20% of our total spending. This will now take away our ability to spend elsewhere and because social security, medicaid, and medicare are all under mandatory spending, they cannot be cut or reduced in any budget. They are literally fixed with a formula that decides who can collect from it and how much and then it goes from there leaving no control over that part of the budget. This leaves us with national defense, education, and all other miscellaneous expenditures that fall under discretionary spending (budget is decided not fixed), and thus take a hit.
We spend $31.1 billion a month on interest payments while spending $46,8 billion a YEAR on education. This should really start to him home after viewing what our debt costs us NOW. It is not some deferred loan that we can pay back when the economy is booming. It is real money that costs us now and is only going to get more expensive as we fall further into debt.
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