Since Halloween is approaching, I thought I’d give myself a good scare. I decided to take a look at the U.S. National Debt Clock. As of the time of this writing (Thursday evening), the national debt of the United States is…hold on to your hats, folks…
$11,897,603,494,874.04
Yikes. According to the Debt Clock website, that works out to about $38,730.25 per person. In addition, the national debt continues to increase by an average of $3.79 billion (yes, that’s billion) per day. Scary stuff for sure.
We can try to point fingers as to who is responsible, but the fact is that politicians on both sides of the aisle like to spend more than this country earns, which I think is highly unfortunate.
I’ll admit that I get a little depressed when thinking about the mess my children will have to mop up. And I start to question whether a country with so much debt can sustain itself for long. Yes, we are a super-power. But for how long?
Yesterday the big news was that the GDP (gross domestic product) grew 3.5% in the third quarter. That’s good news today, but what about the bigger picture? That national debt is growing much faster than the GDP.
If I, as an individual, were to continue to spend more than I earned, eventually I would reach a point where bankruptcy is inevitable. If I racked up the credit card debt and refused to change my spendthrift habits, there would be no recovery for me.
Is it the same with the national debt? My concern is that politicians on both sides of the aisle are so wrapped up in the four year election cycle, that they don’t think beyond the next four years.
We’ve reached a point where everything is so political, so heated, that politicians will do anything, anything to gain the votes of the people. There’s no hope for long term change, because politicians aren’t interested in long term change. They’re interested in saving their jobs.
This is, of course, my opinion, and I’m sure that there are some great representatives in Washington who are truly concerned about the welfare of the people. But for the most part, it doesn’t feel that way to me.
What are the answers? I don’t know. I’m not hopeful for our country’s future. At the same time, I know that God is in control, and I don’t need to worry about tomorrow. I’m concerned, but not panicked. But the sociology major in me likes to ponder these things, so I’m pondering away.
I’m interested in what you think, too. Is the debt troublesome? Can we get out from under it? Is there any hope for change, given the animosity between the parties in Washington? What’s the solution?
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{ 23 comments… read them below or add one }
I agree- I am concerned too. Of course, it makes me panic! I hope something good comes soon.
Yep, scary, scary stuff. Between AARP, UAW, Fannie Mae, Wall Street, labor, anti-labor groups, everyone from right-wing conservatives to far-left liberals is in someone’s pocket it seems. What economic and moral legacy are we handing to our grandkids if we adamantly oppose making any kind of sacrifice for the good of all? We are spending their inheritance. God help us.
“Representative government has broken down. Our politicians represent not the people who vote for them but the commercial interests who finance their election campaigns. We have the best politicians money can buy.” – Edward Abbey
That quote is exactly right on the money for most politicians unfortunately. It is really pretty pathetic that no matter what side of the aisle you vote for that many of the politicians seem like they could care less what you think and just want to keep the money flowing from their deep pocketed friends.
Start studying the Chinese language. America isn’t going to be owned by Americans. Our values have eroded, our financial system is collapsing and our backbone has turned to jello. Unless there is a serious shift back to the values of the founding fathers, America as many/most(?) know and love is on the way out. Fundamental change is here…and he promised this! (yes, you all know who I mean)
Thinking that an individual consumer can influence the national debt is overwhelming. Control what you can – your own spending. Do your part to turn around the negative things in today’s economy by Buying Local, Living Simply, and patronizing companies that are helping the situation not hurting it. If you don’t like Big Tobacco, don’t smoke. If you don’t like the Corn Subsidies, don’t drink soda. If you don’t like antibiotics in your meat, buy from a small local farm. If you don’t like products made in China, don’t buy them. If you miss the community feel of a family run store, don’t shop at Home Depot or Wal-Mart. These things do make a difference.
I couldn’t have said it better myself.
Really well put, Liana. It starts at home.
Every “superpower” or great civilization has collapsed eventually. America rose faster than the others and, I think, will fall faster. I think we will see America’s decline in our lifetime. I think the problem is greater than any president or Congress can handle. I agree with Chris; start learning Chinese!
Just as you are a slave to the credit card companies and a slave to your bank when you are in debt; we, as Americans, are slaves. Can you imagine how strong the dollar would be if the United States started to reverse the debt clock? If we started to put capital and resources back into our country instead of sucking the life out of it? Our leaders are pathetically short sighted and that is how history will remember our country. Not from the freedom our forefathers earned, or by the sacrifices they made, but by the greed and self-fulfillment of our “leaders” in the 21st century.
I’m worried about our future too. We Americans have been living beyond our means for a long time now. Both in our personal lives and in how the government operates. The debt doubled when Bush and republicans were in charge. It will double again(or more) with Obama and the democrats.
Most of the fault lies with ourselves. We complain about the politicians, but keep re-electing the same ones. We complain about government spending, but don’t want them to cut back on programs we like. And we also seem to line up pretty quickly for freebies like cash for clunkers.
We must practice restraint and good sense in our lives. As Liana said, quit buying crap and support good people and companies.
Can we turn things around? I hope so, but we as a country have gotten spoiled which will make it hard.
Thank you for today’s topic, Lynnae. I think all Americans are becoming more and more concerned and, at the same time, feeling more and more helpless about doing anything about it! I actually have an idea for a peaceful form of revolution to get the attention of the two major political machines, neither of which represents us I feel. I have been practicing this for a couple of years myself.
I made a vow to not cast votes for any Republicans or Democrats. I only vote for an independent when there is one available. Otherwise, I do not cast a vote. If enough fed up Americans would join me in this practice, the two huge parties would soon get the message and perhaps reconsider the need to serve us rather than enslave us for their own greedy needs. I know a lot of people are wary of independents, which is probably a well-founded fear, but at this point in our country’s history, I’m not sure they could do a worse job if they tried!!! It is the only method I see of regaining representation in government without a much uglier form of revolution — which I am hearing mentioned more and more these days on the internet and elsewhere.
I would love to hear the thoughts of others. I feel if this idea could be spread by word of mouth, our great country could be saved by the bravery of its citizens once again. Thank you for the audience for my opinion!
Interesting idea. I don’t have much use for either party at the moment. We do need some way to let them know that having a D or an R next to their names is no longer good enought to get our votes. And the independants or minor party candidates probably could not do much worse the ones that are there now.
You have to listen to their words. I am amazed at how many people voted for “O” and didn’t listen to the words coming out of his mouth. He is giving a lot of what he promised. Mainly, he vowed to “fundamentally change” this country. Good follow-through on that one. Also, I think that the people with whom you choose to associate says a lot about your character. Again, no one seemed to bat an eye at this when issues came up regarding people with whom he was associated. Many still don’t think this matters. Character still counts, as do morals, values and belief systems.
Well, as a Canadian I listen to a lot of Canadian media, which include reports from the U.S. but also Europe. The deficit:GDP ratio in the U.S. now is at 10%. That’s ridiculously high.
For comparison, the ratio needed to qualify to make it into the European Union is/was less than 3%. Canada’s deficit:GDP ratio is less than 1%. Also, it is expected that it will take at least 10 years for the U.S. to whittle it down to…… “only” 5%.
The U.S. is insolvent. It is being bailed out primarily by China, then Japan (in that order). A commentator last night said that if the U.S. were a third world country its currency would have sunk 90% by now. The reason it hasn’t is because of the tradition which uses the USD as a world reserve currency in which oil is traded. Hence the new politics over the reserve currency. Without it, foreign partners don’t need the USD and in any case they want less of it.
Forget learning learning Chinese – it’s too complicated and not necessary. You should all be learning to speak proper Canadian! :)
Seriously – I think most financial situations should be judged on the direction it’s going in rather than where it is right now. The US certainly has a lot of debt but that doesn’t mean it can’t change.
Don’t forget that certain infrastructure requires debt ie a big dam for example so it is normal for a country to owe what seems like a lot of money.
As for the $38k of debt per person – is that any better or worse than a family of 4 that owes $152k on their house? Hard to say – it really depends on much money the family makes I guess.
On a positive note, though, the US economy is 70% consumer-driven, which, for all its faults, means that you guys really do have a considerable input into its direction. Where the consumer goes, so goes the nation. You guys can decide to buy more ethical foods, better products, you can decide to start domestic businesses that produce goods domestically. The US needs to become a net exporter again. Don’t buy more than you need; make product choices that are good for everyone. One area it seems could be a niche for domestic innovation and leadership is in the environment and in green tech. Here is where the US can still have a mighty lead over China. You should take advantage of it! The political support for green improvements is much better in the US than in China. If it can be combined with some serious technological innovation, the US could crush it again in that sector.
Response to Pam: I think your strategy is a wise one if there is to be any influence against politicians who continue to support issuinmg fiat money, rewarding failed institutions with oney, and putting us deeper in debt. I would add only that there is a political party that abhors debt, and that’s the Libertarian Party. It’s larger now than all the other third parties combined.
I also would recommend a book that describes exactly how we got here financially, what negative results are still due to happen (drastic loss of the value of the dollar from serious inflation) and what needs to be done to correct our situation. It’s called “Crash Proof 2.0″ by Peter Schiff.
And finally, we really do get the politicians we deserve. None of the negative aspects of national debt cited by Lynnae would have occurred without the huge numbers of US citizens who demand entitlement programs like Medicare, Medicaid, and Social Security; who thought nothing of going into debt to finance consumption; who relished in thinking real estate prices would increase dramatically forever; and those who believe it is no longer important to save money.
That’s an extremely scary number and it’s very discouraging. It looks like the US Government needs to go to debt counseling!!
Scary is right!
It really doesn’t matter if they have a D,R,L or any other letter in front of or behind their name.
What we have is politicians, what we need are leaders. We need people that can and will make the tough decisions.
Isn’t it amazing how they can all stand in front of a camera and talk about the public’s need to be responsible, pay their taxes and make sacrifices (go troops!) for the good of the country. Meanwhile, where are the pay cuts for the federal employee that on average makes more than the private employee? Where are the reduction in benefits, where are the program cuts, department closures and streamlining that every corporation and family has been forced to make throughout this recession?
It’s time for the government to re-learn how to do more with less. We (The U.S. Government) taught the Japanese how
.
The future is so bright! That is why people are getting record bonuses this year. Have you guys not seen the news? Profits are at RECORD highs this year, and there are 10% on average less people to pay. That leads to excellent compensation after last years A&& kicking.
Just accepting the truth.
Hold onto your wallets! The US dollar is on a path of collapse. This whole economic mess is engineered. Check out visionvictory on youtube. This guy called the economic collaspe in 2008 way before it happened. Look up Peter Schiff on youtube. He also called it way before the economy took a nose dive. If you want to preserve your wealth buy gold or silver, and make sure to take physical delivery.
Begin storing food, water, weapons and ammo. Desperate times are just around the corner. Hungry, out of work people will do desperate things to feed their families. We are already seeing an increase in crime. When the dollar collapses and hyper-inflation hits, those who are not prepared will starve. Don’t believe me? Fine, you’ve been warned. Just know this, I am prepared and no, I can’t feed you or your family.
Do something, get educated, get prepared, while food is cheap and store shelves are stocked.
With the economy bruised by recession, the rules of the game have changed. A country that was always based on free trade enterprise has been forced to seek help from the government to guarantee the fiscal safety of large financial institutions. Companies no longer want bad debts cluttering the balance sheet. For this reason, these companies are prepared to settle debts for 30 to 40% of the original amount.
Hello,
I think it is just a small percentage of people around the world that is worried about the worldfinances… Most people a more concerned about the money in there own pockets. “Do I have enough money to buy what I want?” I personaly think that this can not continue. It has to come down at some point. More than it has already. We have to be happy with what we have and not want more what we can not afford all the time. So it costs less and the economie can come to rest.
The politicians in our country are (I think) not to much in the picture worldwide and they don’t have to keep up appearances. Ofcourse they would all kiss the feet of Obama*… ;) I would like them to quit in Afghanistan en not to buy the Joint Strike Fighter. We could keep more money for building a healthy and caring world and not just financially.
In our country there is a very good social plan. Everybody who does not work still gets money and a home to live in. (There are some rules ofcourse.) I think they should give people who don’t want to work less money. Use that money to create jobs to take care of people or to make homes more energyfriendly. That also takes the power away from the countrys that have oil.
*By the way I would kiss Obama’s feet too ;)