This is the debt that WE as Americans hold… 14 figures and counting. Think that is enough?
We all know not to allow debt to pile up on our credit card. Yes, sometimes we miss a payment, but we make payments as soon as we can. Now think of someone who continuously piles up debt. Instead of being fiscally responsible and living within their means, they splurge and live a lifestyle that they cannot support. What would be your perception of this individual? Would you trust this person with your money?
If there was only one word describe the national debt held by the public, it is: astronomical. The amount of debt held by the public is a serious issue that has been discussed in Washington, however not enough action has been taken…As citizens of this country, have we come to accept this frivolous spending? Each President boasts about cutting the national debt, but no President has discussed an actual comprehensive plan to attempt to combat or minimize debt held by the public.
So what do the numbers say?
1974 was the lowest amount of debt held by the public since Post World War II. However, 1974 marked the passing of The Congressional Budget and Impediment Control Act. This act is significant because it reformed the federal budget process to allow Congress to more easily challenge the President’s budget policy. As a consequence, this made it increasing more difficult to control deficits. As the data depicts, that is why there is a steady climb in public debt. During the Reagan era (1981-1989), there was a large increase in military spending as well as implemented economic policies which lowered tax rates. Then in the 90’s, President Clinton along with a Republican controlled Congress under the leadership of Newt Gingrich brought our first surplus since 1969. Under George W. Bush, we returned to a deficit due to the Bush tax cuts, increased military spending caused by the wars in the Middle East, and a new entitlement Medicare D program. The debt held by the public increased from 3.32 trillion in September 2001 to 5.8 trillion by the end of 2008. Bush during his presidency nearly doubled the national debt. Under current President Obama, the debt held by the american public has increase by 120.2%, now at 12.8 trillion.
Continued borrowing whether domestic or abroad to finance increased spending on entitlements, the main drivers of debt, ultimately increases the eventual burden on US tax payers, who will have to pay for it.