Weblog (or Blog)
Friday, July 22, 2011
The title is talking about defining the problem, not the solution, to our national debt. The solution is tied up with political maneuvering by the same politicians that have ignored the clearly-approaching problem for 30 years. This article summarizes it well. For the past 60 years, the government has averaged receipts of 18 to 19 percent of GDP. Therefore, we cannot average more than that in spending or we add to the already unacceptably large deficit. In 2010, we spent 25% of GDP. Continue that and the defaults that are being talked about as possibilities come next Wednesday become the norm and the U.S. is on its way to becoming a second-rate nation.