So what should our children and grandchildren say when they are told their taxes are going up to pay the interest on the $17 trillion in debt this nation has rung up?
How about: “There’s the graveyard. They borrowed the money. Collect from them.”
Maybe it is time to default. Full faith and credit? No one has any faith we’ll ever be able to repay and our credit rating is rapidly declining.
Not only is our debt unsustainable, it is unfathomable, because the feds have been cooking the books.
Just like the Nevada public employees pension program, which claims to have $10 billion in unfunded liability but really has $40 billion, the federal debt is not just $17 trillion and growing by $1 trillion a year.
According to a column in The Wall Street Journal this past fall by Chris Cox, a former chairman of the House Republican Policy Committee and the Securities and Exchange Commission, and Bill Archer, a former chairman of the House Ways & Means Committee, “The actual liabilities of the federal government — including Social Security, Medicare, and federal employees’ future retirement benefits — already exceed $86.8 trillion, or 550% of GDP. For the year ending Dec. 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion. Nothing like that figure is used in calculating the deficit. In reality, the reported budget deficit is less than one-fifth of the more accurate figure.”
For the government to actually pay as we go on all spending and entitlements would require revenue of $8 trillion a year, Cox and Archer calculate. To cover this, they say, confiscating every dollar of income from Americans earning more than $66,000 a year, plus all of the corporate taxable income in the year before the recession, that of course is less now, wouldn’t be enough.
That $1 trillion tax hike Harry Reid wants would hardly cover the nut.
Another sad part of all this is that at the same time we are saddling the next generations with an impossible tax burden, we are simultaneously hobbling them with inferior education, scant employment opportunities and piles of college loan debts.
According to Pew Research data, 63 percent of 18- to 31-year-olds had jobs in 2012, down from the 70 percent in 2007. Fully 36 percent of these so-called Millennials were living in their parents’ homes in 2012, compared to 32 percent in 2007 and 34 percent when the recession officially ended in 2009.
It’s been 30 years since “A Nation at Risk,” was published, declaring, “If an unfriendly foreign power had attempted to impose on America the mediocre educational performance that exists today, we might well have viewed it as an act of war.” Little, if anything, has changed since.
On top of this, as if this camel needed another straw, young people will have to shoulder a disproportionate share of insurance costs under ObamaCare, because the law states no age group will pay more than three times the premiums of another age group, even though older people require five times as much expense as younger people.
To contort Churchill: Never have so many asked so few to do so much with so little.
I am ashamed.