Red Ink and Upward Redistribution

Ralph R. Reiland
The American Spectator
5/3/2011

After doing nothing during his first two years in office to deal with the debt tsunami that’s clearly visible on the horizon and heading our way, President Obama delivered a 2012 budget plan that, as Investor’s Business Daily accurately editorialized, “proposed spending $252 billion more in 2012 than the feds spent in 2010 — at the height of the stimulus spending spree.”

Longer run, worse than doing nothing, Obama’s projected budgets over the next decade add enough trillions in red ink to double the size of the incoming tsunami.

The federal government’s current $14 trillion debt averages out to approximately $50,000 per American, $200,000 for a family of four. For the half of U.S. households who still pay federal income taxes, that averages out to $400,000 per family for those are getting stuck with the tab.

Add to that the next decade’s proposed red ink and each of those taxpaying household ends up, on average, $800,000 in the hole. That could become an unworkable $80,000 a year in interest payments per taxpaying household, on average, if the U.S. credit rating drops and lenders require 10 percent interest payments…

The article continues at The American Spectator.

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