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"We always resolve our problems." What’s different now? (Vol. 85)

Updated: Feb 7, 2023

analyticsbox | Jan 05, 2023



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Today, things ARE Different.

So what is so unique about today? We always figure out a way to succeed and overcome problems we face. There is no point in worrying about the future or our current economic mess, we will make it work. We always have. Not so fast. Things are different. If we look back over the past 60 years or so, the debts of this country have been, more or less, ‘manageable’ - until recently. A key measure of our debt problem is the ratio of interest-bearing debt to our Gross Domestic Product (GDP). It had ranged from a 30% to 65% ratio through 2001. President Clinton left office in 2001, and he had run a surplus for 3 years by working across the aisle, working with all of Congress and passing sound legislation (he is the only President in the last 60 years to run a surplus). He said, "The era of big government is over." The debt ratio was reduced from 65% to 55% when he left office. There was a lot of talk about how we would soon be paying off the national debt. Fast forward to today. The era of big government is not over. In fact, it is back in spades. In the last 21 years we have added 25 Trillion Dollars to the interest-bearing debt, and the ratio of debt to GDP has soared to 130%. The Congressional Budget Office projects deficits indefinitely, adding another $14.5 Trillion in debt over the next 10 years to 45 Trillion dollars. The Unfunded Obligations grew out of control - $71 Trillion as of September 30, 2021, and growing. And the Department of the Treasury says in its annual report, "The current fiscal path is unsustainable." No, things are not the same, they are radically different. There is no fiscal responsibility in DC anymore. Government spends recklessly, giving unimaginable amounts away to constituents to buy votes. It is more profitable in many states to be on unemployment, than to work. Ever wonder why we have trouble filling jobs? WE ARE OUT OF CONTROL AND HEADED OVER THE FISCAL CLIFF IF WE ‘KEEP ON KEEPING ON’.


BOTTOM LINE

Be alarmed, and for good reason. If we are complacent and just assume it will all be OK, we have big problems coming and our current economic mess will continue to be a mess. The course we are on leads directly to the proverbial iceberg.

Express your opinions to our elected officials. Let them know we need good economic policy and fiscal responsibility. Join the Main Street Lobby and go to our website and Contact Congress by clicking the link below. It is easy, just enter your name and address and hit ‘Send’! You can use our message or write your own.

LEARN ECONOMICS, THEN VOTE SMART

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