Here it is headed towards the middle of the fifth month of 2023, a year that I began promising myself I would start posting regularly again! Oh well...
I am moved to do this post due to the totally manufactured "debt crisis" that Congress is foisting upon us, the taxpayer - AGAIN!
Why do we have to raise the debt ceiling again? What is the debt ceiling? Why does any of this matter?
The debt ceiling was put into place in its modern form with the Budget Acts of 1939 and 1941. This established a limit to how much debt could be incurred by Congress to try to cap the cost of borrowing and spending. The issue has been, especially of late, that Congress just passed another set of rules saying they could increase this limit at will. (obviously assuming that the two parties could agree on the amount and vote it through) So, the limit is really just a suggestion, more or less.
The debt ceiling has to be raised because Congress/the Federal Government is spending more than is being taken in. Now, there are some that are saying this is happening due to tax cuts and such. That is B.S. The tax revenues have increased every year but one since a brief fall during the recession of 2008-2009.
In 2000 the tax revenue taken in was $2.03 Trillion.
By 2010 the figure had grown to $2.16 Trillion. That was after the drop I mentioned that occurred during the recession of 2008-09. The revenues had actually increased to $2.57 Trillion by 2007.
In 2015 the tax revenue was $3.25 Trillion.
2016 - $3.27 Trillion
2017 - $3.32 Trillion
2018 - $3.33 Trillion
2019 - $3.46 Trillion (note the evil Trump tax cuts took effect in 2017)
2020 - $3.42 Trillion
2021 - $4.05 Trillion
2022 - $4.90 Trillion (estimated)
The issue is NOT tax revenue, it is increased SPENDING!! Do not believe the hype from a Congress that knows they can buy votes with spending. The government took in 50% MORE tax revenue in 2022 than in 2015. Are you making 50% more than eight years ago? I know some are, but most are not.
In 2021, the last time the debt ceiling was raised, it was increased to the current $31.47 Trillion from right at $29 Trillion or an additional $2.5 Trillion dollars - over $7,500 for EVERY Man, Woman, and Child in the USA! Here we are two years later and the Congress-creatures want us to let them borrow more.
I know the arguments: If we don't allow them to borrow more the world will almost come to an immediate halt. People won't get paid, Social Security checks won't get sent, and all sorts of evil things.
That is a bit of an exaggeration, but essentially true. But, if you are drowning in debt, do you get to ask for a loan? Or, do you have to cut your spending? Congress has spent more and more and more and then they scream about how the government is going to default and the world will end.
In 2008 a Presidential candidate Barrack Obama said that the other candidate, sitting President Bush had allowed the national debt to rise to over $9 Trillion. He said this was almost "criminal". That is less than one-third of what it is today.
The government cannot keep spending and spending and spending. One issue now is the service on the debt. We all know the Federal Reserve has been raising interest rates to combat inflation (a misguided effort for may reasons, but that is another subject). The interest on the huge national debt will be well over $500 Billion (half a Trillion) dollars for 2023 and was over $400 Billion for 2022. Here is what was spent in 2022 by each government department:
The interest on the debt is more than the Department of Veterans Affairs AND the Department of Transportation COMBINED! That will only get worse with the recent interest increase and the increase in spending.
Tell your Congress-creature they don't need more money to spend, they need to spend LESS!!
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