How does america get into debt?

Is it a combined total of private companies and peoples debt or just the governments spending?

Comments

  • In 2012, we have brought in about $2.2 Trillion in taxes and other revenue.

    By the end of the year we will have spent $3.4 Trillion on things like new planes, ships, soldiers pay and retirement, money to States for Education and Welfare, NASA, FBI, CIA, aid to other countries, etc., etc.

    We sold $1.2 Trillion worth of Bonds. That is how we 'borrow'. You give them $1,000 cash, the give you a piece of paper. You get about 3% interest on that bond. So, when you cash it in, the Government has to give you $1030.

    The problem is we don't have the Cash to pay back people for the bonds, so, we Sell more bonds to get the cash to pay you for your bond.

    Other Countries buy these bonds, too. They are in your Retirement Fund, Social Security has bought about $4.5 Trillion worth of them.

    It is called Public Debt. That is the amount of money lent to us by individuals and foreign governments.

    The National Debt is different. As I said earlier, our government 'borrows' from itself. The Treasury owes $4.5 Billion to the Social Security Trust Fund, over a Trillion $$ to the Military Retirement Fund, and over a Trillion $$ to Civil Service Pension Plan.

    So, in addition to the $16.2 Trillion that the US Government has borrowed from me and you, they owe another $6.5 Trillion to themselves. That money has to be paid back before they can give you a SS Check. That money has to taken from our other taxes.

    I hope that helps and was not too much junk.

  • same way any person gets into debt, by spending more money than they have coming in...it's just a matter of degree and isn't at all hard to understand. we buy a car and finance it over 5 or 6 years, a house and finance it over 15 to 30 years usually. along with paying the price for such things, we also pay the interest charges which are the fees for other people...banks and so on...allowing us to use their money. the government borrows through selling bonds, t-bills, etc., and that isn't where it ends, though. they also simply use money not yet brought in through taxes based on the assumption that those taxes will come in over a period of years, thus putting an added burden on the revenue of those ensuing years before anything else comes up during those years, like building roads or making employee payrolls, etc., and this is the most insidious part of it all. bottom line, it's not a lot different than you or i using a credit card for purchasing food and paying utilities, because then we tend to stretch out the payments for stuff that we have already consumed, thus making next year's food and utility bills in fact much higher since we also have to pay for what we're using then along with still paying for what we used today...get it?

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  • We elect Democrats - literally 100% of whom in the last 100+ years have always demanded perpetual escalation of debt

    Seriously:

    > ALL of them

    > For more than 100 years in a row now

    > FOREVER. Not one Democrat has ever proposed any budget/spending package that leaves open ANY possibility of EVER balancing the budget and ALL of them have voted against each and every proposal that EVER makes balance even the remotest of possibilities.

  • I have no idea it seems that all the countries owe us and they

    aren't paying us back since World War 2. When you keep lending

    and nobody pays you back you find yourself in debt.

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