Previous analyses of “by the numbers” can be accessed by entering the phrase in the search box above. This is the third and final post this month where we look at the numbers to truly find out how good, not likely, or bad, most likely, the American political class is doing in managing our tax dollars, protecting our freedoms, and resolving major issues that affect all of us.
1)For over ten years we have pointed out that the Federal government was living and spending well beyond its means. Every year it has had to sell government bonds to make up the difference between what it spends and the taxes it collects. In fact, the Federal government has not run a budget surplus since the Bill Clinton Presidency, over twenty years ago and that was for only a short time.
The problem with such deficit spending is that the interest has to be paid on those government bonds every year, which means the interest line in the Federal government budget gets larger and larger every year as the national debt gets larger and larger every year. We have reached a point where tax dollars spent just on paying down the incurred debt is one of the biggest national expenses every year.
Under the Biden Presidency the national debt of the Federal government just exceeded $31,000,000,000,000. That’s a mind blowing $31 TRILLION. To give you an idea how imposing and dangerous that debt level is, consider the following numbers:
In order to pay off that debt, every American taxpayer would have to write a check for over $221,000.
If you put that debt burden on every American citizen, then every American citizen, including newborns, toddlers, and kids would have to write a check for over $84,000.
If you had spent $1,000,000 (one million dollars) a DAY since Christ was born, you still would have not spent one trillion dollars, nowhere close to the $31 TRILLION national debt.
The Federal Reserve recently estimated that the total wealth in the country was about $123 TRILLION which means that every man, woman and kid in the country would have to give up about 25% of everything they owned to pay off the national debt.
We are so screwed since, as readers of this blog know, the $31 TRILLION is only the current debt level of the Federal government. The unfunded future liabilities of the Federal government, debt and expenses coming due that cannot be paid with current tax streams, is a whopping $80+ TRILLION plus. Add in the debt incurred at the state and city level and a conservative estimate shows that the American political class has created a government debt crisis of about $125 TRILLION.
In other words, if the Federal Reserve total national wealth estimate of $123 TRILLION is correct, all levels of government in this country owe more money than what the entire country is worth. Well done, American political class, spending more money than assets are available to pay for those expenses and debt, a classic definition of bankruptcy.
For a detailed account of the Federal Reserve total wealth analysis, go to:
https://loathemygovernment.blogspot.com/2021/01/happy-new-year-and-welcome-to.html
2)Continuing with the Federal government budget crisis theme, in fiscal year 2021, the Federal government collected more tax revenue than at any time in its history. And yet, it STILL spent $2.8 TRILLION more than it collected.
This means that theoretically, every American taxpayer in 2021 would have paid an additional $20,000 in Federal income tax to make up for the budget deficit that Washington incurred. Many taxpayers do not make $20,000 a year, never mind paying an additional $20,000.
And the very sad part of this wild deficit spending is the following problems:
We still continue to under educate our kids despite a $2.8 TRILLION budget deficit.
Our roads, bridges and dams continue to fall apart despite a $2.8 TRILLION budget deficit.
Millions of Americans are homeless, hungry, and drug addicted despite a $2.8 TRILLION budget deficit.
In other words we get heavily taxed, the politicians continue to run up massive budget deficits, and no issue, no problem ever gets resolved despite the government spending trillions of dollars on what? We do not have an under taxation problem in this country, we have a political overspending problem in this country.
3)No by the numbers blog post is complete without reporting on the carnage of death that continues in the city of Chicago:
According to CBS news, at least 62 Chicago residents were shot during a mid-September weekend.
Nine of those 62 who were shot died from their wounds.
At least 6 of those 62 were under the age of 18.
As of October 10, 2022, the Chicago Sun Times reports that a whopping 527 Chicago residents have been murdered in the city, over 50 a month on average.
This has been going on for years and yet no one in the Chicago, Cook County, or Illinois political class has a clue on how to stop the violence or who cares to stop the violence.
4)A lot of Americans are relying on their IRA and 401k plans to have a healthy retirement. And a lot of their investments are in the stock market. And the underlying numbers supporting that approach is not looking good in the second year of the Biden presidency:
So far this year, falling stock prices have reduced the wealth of all American households by $9,000,000,000,000, nine TRILLION dollars.
And while $9 TRILLION is a big number, the scarier number is that this $9 TRILLION represents a whopping 25% or so of the entire stock market value, dropping from $42 TRILLION to $33 TRILLION.
With the stock market still floundering, the total loss of wealth for the year could be over $10 TRILLION.
Granted, a lot of this loss was incurred by billionaires like Facebook’s Mark Zuckerberg, who has lost billions of dollars in wealth this year, but many ordinary Americans are looking at their retirement accounts and getting worried.
CNBC has reported that this might be the biggest loss in wealth in the stock market ever.
Massive failure by Biden, the Washington political class, and the Federal reserve when it comes to economic policy and management. It is endangering the quality of lives of millions of Americans. The numbers are approaching catastrophic.
Enough numbers for today: Americans getting poorer by the day, Chicago getting deadlier by the week, and the country getting closer and closer to a massive government default every year. Have a great day!
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:
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