US Debt

Forgive Us Our Debts: The Intergenerational Dangers of Fiscal Irresponsibility

www.UnderstandingTheUSDebt.com

Overview

According to Webster’s Collegiate Dictionary, debt is defined as “a state of owing” or “something owed: Obligation.”  Interestingly, it is also defined as “Sin, Trespass.”  All three definitions accurately describe the condition, history, and decisions leading to the persistent and rising debt of the U.S. federal government.

For over 120 years, the United States raised money during times of war or financial panics.  Each time, the leaders of the country worked hard to reduce their obligations, wary of passing debts to future generations.  But starting in the early 1900’s, views about debt and the role of the federal government began to change.  Now, one hundred years later, America is over $14 trillion in debt.  Americans need to know why we are in such a horrible financial condition and what changes are necessary to become debt free.

Book Fast Facts

• The United States government has a long history of debt, starting with its initial obligations from the Revolutionary War.  Unfortunately, the debt hasn’t been reduced even once since 1958.  The last and only time we’ve been debt free was in the 1800’s.  Understand the debt from a historical perspective in Chapter 1.
• Historically, the debt has risen because of major wars and financial depressions.  But now, over a third of the debt is associated with something called intragovernmental holdings.  Learn more in Chapter 2.
• In 1985, 16% of our debt was held by foreign interests.  Today, that percentage is over 50%.  Find out who owns the debt in Chapter 2.
• Social Security has been called a Ponzi scheme.  Understand how the Social Security “trust funds” work in Chapter 2.
• Some people think military conflicts are the cause of our current debt problems.  However, national defense outlays are only 20% of the total spending over the last 35 years.  Learn where the money is really spent in Chapter 3.
• Which Presidents spent the most? One President increased general government spending by over 1300%, five times more than any other.  Look at spending by Presidential terms in Chapter 3.
• The actual debt of the U.S. government is not $14 trillion.  It is much, much higher.  Learn why the actual debt is closer to $60 trillion in Chapter 4.
• The budgeting process of the U.S. government is broken.  Cuts in discretionary spending are not the answer.  Even if all non-defense discretionary spending is completely eliminated, we will have deficits every year for the next 10 years.  Learn why in Chapter 5.
• Did you know Argentina was among the wealthiest countries in the world during the early 1900’s?  Have you ever wondered why Japan is no longer a rising superpower?  Would you be surprised to hear that massive debt is the culprit?  Learn why these countries fell, and how the U.S. is following right in their footsteps, in Chapter 6.
• According to the government’s own predictions, by 2030 the debt (relative to the size of our economy) will be worse than it was during the peak of World War II.  This is probably an optimistic prediction.  Learn why in Chapter 7.
• There are startling parallels between the Great Depression and what started as a recession in 2008.  If you want to know why high unemployment and a secondary recession are likely to be part of our immediate future, read Chapter 7.
• Can we become a debt free nation?  Yes, if we are willing to implement simple but perhaps unpopular changes.  Read the 7-point plan for becoming debt free in Chapter 8.

Understanding the United States Debt