Longer Step: Ideas for Justice and Sustainability

Time to harp on the deficit again. 43% of every dollar spent by our federal govt is being borrowed. The government's expenses are only 57% covered by revenue (from taxes, mostly). This is wildly unsustainable, and in a strong economy it is beyond reckless--it's criminal. In my opinion, it can only lead to the destruction of our currency, our economy, and our very country, which means of course that you and I may lose all our assets and possibly our lives. The only way to avoid this is to do what no politician is willing to even talk about: Dramatically raise taxes and dramatically cut spending. Doing that might cause a deep recession and greatly increase poverty, but it would save the country. The irony is that NOT doing it will also cause a deep recession and increase poverty, but it will further bring about the end of the US. When you've borrowed all that you can, then you are out of options. You are bankrupt; the game is over. We are close to that point. No one can kno...

  I periodically warn how dire the US debt situation is. For something without significant news coverage, it is incredibly dire. Look at the simple math: 1. The US govt is spending $6.8T ($6800 Billion) a year. 2. But its revenues from taxes are only $3.8T. That is a mega-shortfall! 3. So we continue increasing the debt, to fund the difference. That accumulated debt is now larger than our GDP (and the World Bank says that's past a tipping point for disaster). US govt is spending about $600B on interest each year, which is about 8% of its budget, and rising. If interest rates rise, interest payments will go much higher, and will crowd out other spending on stuff most of us want the government to provide, such as Social Security, Medicare, food assistance, police, courts, roads. Imagine a US with only half as much spent on those programs. It is wrong to assume we can just "grow out of it," as the debt is growing faster than economic productivity gains. The fix is to raise t...