The Unrelenting March To The Government Debt Bomb Implosion, Part 2

Over the past couple of weeks we have done three posts that show how quickly the country is going over the edge as it pertains to fiscal insolvency, given that the American political class has racked up about $109 TRILLION in debt that will have to be faced at some time soon:

• Current Federal government national debt - well over $21 TRILLION.
• Current unfunded Federal government liabilities from Medicare and Social Security - $82 TRILLION.
• Current unfunded liabilities of state governments - $6 TRILLION.

Those three posts and the dire news they portray can be accessed at:

https://loathemygovernment.blogspot.com/2018/11/the-unrelenting-march-to-government.html

https://loathemygovernment.blogspot.com/2017/04/dont-worry-be-happy-bursting-of.html

https://loathemygovernment.blogspot.com/2018/10/dont-worry-be-happy-any-short-term.html

Failure to address these debt mountains by American politicians will make the debt implosion worse and more devastating the longer the problem festers. And given that no politician even mentioned the debt issue in the just completed midterm elections means that they are unlikely to fix the problem anytime soon.

To the dire numbers listed above, let’s list out a few more facts that should scare you even more: but which hopefully give you a little perspective on how large the problem is:

• In fiscal year 2018, the Federal government collected $3.422 TRILLION in tax revenue, the most tax revenue the government has EVER collected.
• In fiscal 2018, the Federal government is expected to have paid out $952.5 billion just in Social Security benefits.
• Thus, almost 28% of the Federal government’s tax revenue is sent right back out in Social Security benefits.
• Given that about 10,000 Baby Boomers retire every day, the total number of dollars and percentage of Federal tax revenues paid out in Social Security benefits is going to go up dramatically in coming years.
• While the Federal government paid out $952.5 billion in Social Security benefits, it only collected about $917 billion in Social Security taxes, putting it in a negative cash flow situation worth about $36 billion, a tidy sum of money that the Federal government had to close with general Treasury Department revenues.
• This $36 billion will get larger and larger every year as more people retire and there are fewer and fewer workers paying Social Security taxes, adding to the $21 trillion national debt. 
• In fiscal 2018, the Federal government programs Social Security, Medicare and Medicaid will suck up $2.7 TRILLION of the Federal government budget, about 64% of total spending and about 79% of the Federal government’s tax revenue.
• 50 years ago these three programs accounted for only 25% of the Federal budget, which means that this piece of the Federal government budget has grown two and half times in those years.

As you can see, trimming Federal spending around the edges (or even eliminating whole government departments) will have no real impact on this $109 TRILLION debt crisis. Taxing the rich more will have no real impact on this $109 TRILLION crisis. Blaming each other will have no real impact on this $109 TRILLION crisis. And most importantly, thinking that the American political class will take this $109 TRILLION seriously is a fool’s hope.

We have allowed the political class to get us into this situation. Thus, it is up to us to force these clowns in Washington and state capitals to face reality and come up with a coherent plan that fixes the crisis. The longer we wait, the more we let skate by on the hard decisions, the more painful the final outcome will be.

Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:

www.loathemygovernment.com

It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.

Please visit the following sites for freedom:


http://www.reason.com
http://www.cato.org
http://www.bankruptingamerica.org
http://www.conventionofstates.com
http://www.youtube.com/watch?v=08j0sYUOb5w