A 700 page long budget, which probably hasn’t been fully and thoroughly read by the Congress considering the small time that the ‘Democrat’s Budget’ had been introduced in the Congress. This bill, which in fact has been passed by the Congress is projected to add another $1.5 trillion to the deficit of the United States over the next 10 years. Besides this, there is going to be an increase in government spending by $321 Billion, which is approximately an increase by 21% than the previous budget’s spending. This is going to be nothing but another burden on the pocket of the United States, where we are already more than $20.6 trillion in debt.
It is indeed shocking how much we are in debt. $20.6 trillion is a scary figure. On average, the debt per tax payer is $170,377 and the debt per citizen is $63,051. The Income Tax Revenue is, as of now, $1.6 trillion. All in all, our Gross Domestic Product is a bit over $19.7 trillion.
Statistically, our Gross Debt to GDP Ratio is 104.21% which means that our debt is more than our GDP by a percentage of 104.21%. (the public debt to GDP ratio being 72.82% and external debt to GDP ratio being 97.675%).This means that if our GDP (to give a practical relevance) is $100 then our debt would have had been $104.21. This doesn’t seem to be a big number, a $4.21 difference. But our GDP isn’t a $100, it is, as also stated above, $19.7 trillion. By simple math, our debt is around $900 billion more than our income. By basic math, we are essentially bankrupt. When our income is less than our debt, it means that we would not be able pay off our debt, meaning bankruptcy. Now thankfully, there are other things as well which make a country bankrupt, like falling stock markets, massive unemployment, and also absence of investments. Since we don’t have radically falling stocks, our unemployment is relatively low, and we do have investments, we aren’t bankrupt since these things save us from absolute insolvency. But if our government continues to spend recklessly maybe a day will arrive (soon) when these things wouldn’t be able to sustain our country.
Our government (before this budget was passed) spent,
- $1.167 trillion on Medicare/Medicaid.
- $956 billion on social security.
- $ 644 billion on the military(both defense and wars combined)
- $295 billion on income security.
These are the major ways our government spent our money before this budget was passed. Other spending items include Federal Pensions, Net Interest on Debt and other miscellaneous items. As we can already see that these numbers are literally above the sky, and the spending is increasing at the rate of $1000 roughly every second. Our debt increases by $10,000 every second and thankfully, our GDP is also growing at just below $10,000 every second under President Trump. (as opposed to the approx. $7,000 to $8,000 increase per second under President Obama) So the good thing is that under President Trump, our GDP is growing at the nearly same rate as our debt. The bad thing is that under President Trump our debt is also growing at nearly the same rate as our GDP. The overall good thing in all of this is that at least under President Trump our rate of increase in GDP per second has come closer and nearly equal to the rate of increase in debt per second as opposed to it being lesser than the rate of increase in debt under Obama. The overall bad thing in all of this is that the budget does nothing to reduce the spending, instead increase it by $321 Billion over the next 2 fiscal years.
These statistics clearly show that we aren’t in a position, our government isn’t in a position to spend the amount of money it is spending right now. Our spending to GDP ratio is 35.25 % at this very moment. It is a clear indicative that our government can’t afford to increase the spending anymore as it would do nothing but harm to the United States, sadly the budget deal 2018 is projected to increase the spending by $500 billion during the next 2 fiscal years.
What is happening in the Congress right now is-
- The Republicans want to increase spending on our military.
- The Democrats want to increase spending on everything but our military (probably because in their eyes increasing spending on our military has suddenly become dictator like)
The Republicans can’t increase the military spending if they don’t allow the democrats to increase spending in the areas they feel fit. The net result is an overall increase in the government spending, or to quote Senator Rand Paul,
A compromise in the wrong direction.
The conservative way, if not the republican way, is to reduce the government spending in order to meet the deficit, as opposed to the liberal way, of increasing taxes on everyone and hence increasing the federal revenue income while destroying the citizens by taking away all their money. We should not increase spending any where, instead we need to decrease it, neither in social security, neither Medicare/Medicaid, not a single place should it be increased as it does nothing but add to the deficit of the United States, maybe we can increase military spending by a certain amount considering the increasing threat we face from several hostile countries, but not radically increase the spending.
As the Senator from Kentucky, Sen. Rand Paul quite rightly pointed out, that we need to rather check how the money the government is giving to the military or several other things is being used. It turns out that the war in Afghanistan which has been continuing for 16 years consumes $50 billion each year, and that’s just one. Our troops and soldiers are literally present in most of the middle east, putting their lives at stake, we need to bring them back to the united states. Now first of all, to withdraw all our troops from Afghanistan would be self-damaging as the day we do this, the terrorist organisations are gonna rise to power and would eventually overthrow the government and chant like many ‘Death to the U.S.’ and since they would have official power, they could divert all the money they have and the government’s money to terrorizing the world. On one hand is the aspect of the debt being uncontrolled, and on the other is another hostile regime threatening the United States. We should not under any circumstance find new enemies and start another war as this wouldn’t be helping us at all. When we evidently don’t have the money to fund the military with its increased operation in other parts of the world, we shouldn’t try to expand the region where our military operates. Sure we can do this when we ourselves are safe and are economically secure as well, not when the debt is sky-rocketing and the government is struggling to keep the debt in control. We should not pick up unnecessary wars which are going to do nothing but bring destruction to the united states economically if not physically. This is no longer the Cold War where the two super powers have to pick up sides which necessarily oppose each other. If the justification for starting such wars is to restrict Russian and/or Chinese influence in different parts of the world, slap sanctions, economic sanctions, tough economic sanctions and tougher economic sanctions until and unless the rogue countries stop trying to expand. This way the entire world would able to see which country is the one which goes rogue, since in many parts of the world, the U.S. is seen as an evil force, which starts wars and this impression is basically not true. What is more ironic is that when we do enter a war mostly fighting for the people who have been wronged and are oppressed we never charge anything from the people our soldiers fight for. The United States isn’t immortally wealthy, it can’t fund all wars all on its own, minimal help comes from our allies. It is not a surprise that the United States after the WW2 has only significantly enough won only 1 major war, which is the Gulf War. Clearly, we don’t have the money to start and win major conflicts, without heavily borrowing the money. Neither do we charge our allies much, and neither do we restrain from engaging in wars. The answer to this isn’t increasing our spending on the military, as it does nothing but increase our debt, the answer is not engage in wars which don’t directly deal with us. Sure if another country is threatening us, we should respond to that, but if they aren’t we best keep our peace. Clearly we aren’t in a position to wage a war as wars do require a lot of money and as of today, we don’t have that. The result being the government borrowing it, increasing the nation debt. Maybe we were in such a position once, that we had ample money to fight for good all over the world, but we aren’t right now, quite evidently. As much as I would want my country to fight for freedom all over the world, but we aren’t in a position to do so, we don’t have the money to meet the expenses of the wars and conflicts all around the world. People might say that this is selfish, I would say that this is basic common sense. When a person is in debt, how is he supposed to provide food water and shelter for another person? It is indeed great if a country fights against oppression all around the world, but not on the expense of its very own existence. Everybody wants a world free from prejudice and oppression, and till now we have been combating such follies, but quite evidently, we can’t continue to do so any longer when our GDP is significantly lesser than our Debt.
The United States was in a position that it could uphold humanity all around the world, especially after World War 2 and the collapse of the Soviet Union. That period saw an increasing rise in our GDP as we established ourselves as the leaders of the world, and the rising GDP compensated for the debt we had before and the money we had borrowed to fight the Second World War. This enabled us to fight for freedom all around the world. Today, due to reckless government spending, our debt has increased and has become more than our GDP. Clearly rendering the United States unable to do the noble work it does before. We need to stop building other nations and start working on our own. And we don’t start working on our own country by increasing spending, we start it by reducing our debt the conservative way, that is to reduce the government spending.
An instance was cited by Sen. Rand Paul when we spent billions of dollars in a natural gas plant in Afghanistan to reduce the carbon footprint of Afghanistan. As if that wasn’t ridiculous enough, since there are certain states within our country that these plants don’t exist, it turned out that the people over there didn’t have cars which ran on natural gas, so we bought them cars which ran on natural gas. And then, we issued them credit cards and every such thing. How this is a part of the military budget is beyond me.. As much as I am delighted by us helping the less fortunate, I can’t ignore the fact that things aren’t utopian in my own country that we are helping others. When our own people within our own borders don’t have enough to eat and are unemployed, how selfish and asinine could our government be that it is ignoring its own citizens to meet the requirements of its own citizens, that too oblivious to the fact that it itself is in debt. Now of course we can’t just withdraw all of our troops stationed in different parts of the world, those countries would descend into a literal hell hole and people with radical ideologies would gain in power and expand and then threaten the united states, it would just be the birth of another ISIS. What we can do is stop wasting our money on frivolous and unnecessary stuff, we should leave this job to the government of the very country we are defending. We are already fighting for them, we are already fighting for their sovereignty and freedom, we need not basically export our wealth since we aren’t in a position to do so and we don’t have an excess of money.
We need to stop engaging in wars we don’t win anymore and just harm our own country.
There is also the need to reform medicare/medicaid if not totally scrap it. There should be an increased privatization in health care and no private corporations don’t exploit the patients since if they do, the patients wouldn’t opt for their firm and would gradually be out of business out of lack of patients opting for their care. This would reduce the government spending with that respect and hence drive down the deficit. The government wouldn’t have to spend a trillion dollars to meet the requirements of medicaid. The same should be done with respect to social security, because clearly our government can’t afford to give to us social security. This is actually an issue where conservatism conflicts with President Trump’s policies.
It is natural human instinct to want something without giving much in return. As much as I would want free healthcare by the government for all, it is imperative to understand that the government can’t afford to do it, at least right now. Maybe when our GDP is significantly higher than our debt, such a thing should happen, but since that is not the scenario right now, the government needs to reduce spending where it can and should, especially when there is a more viable way than that.
The Main Stream Media, as pathetic and cheap as it could be, laid a special emphasis on Sen. Rand Paul’s statements in the Senate, because he pointed out that republicans have always stood for reduced government spending. That very segment has been repeated over and over again to sort of paint all of the GOP as hypocrites, which they seem to be, but the way the MSM portrayed it was like blatantly exploiting an issue of national concern to forward its own agenda, but that’s just my opinion. The Main Stream Media seem to put a special focus on the projected $1.5 Trillion increase in debt because of the Trump Presidency. This isn’t a criticism for the media highlighting the bad things in the bill, this is a criticism for not doing the same when President Obama’s budget added to the debt. Clearly President Obama was spared the scrutiny which President Trump is being subjected to. It is a wonder how they call themselves un-biased.
Furthermore, Rep. Nancy Pelosi literally spoke for 8 hours rambling, in fact worse than rambling about DACA and illegal immigrants, and quite shamefully, expressing her concerns for the growing debt as we should accept DACA as they are law abiding citizens who pay their taxes and hence help in economic growth, completely ignoring the amount of money the government spends to provide them with the conditions for living as other Americans. Remember when Sen. Ted Cruz spent hours decrying Obama care and the backlash he suffered because of his persistence? You would expect the same condemnation for Nancy Pelosi, but apparently not, instead she is being hailed as a heroine for basically blabbering utter nonsense at a later part of her speech.
P.S. The data and the statistics vary literally every second and hence approximate values rounded off to 3 significant figures have been stated.