The National Debt (since 1776) and our Annual Federal Deficit Confusion – updated with invaluable chart!


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Politicians are cute – they love to confuse everyone and then laugh heartily amongst themselves; “The people are just so dumb! – Let’s get lunch!”

What is the National Debt?  The National Debt is the amount of money that has already been spent by the Federal Government.  Our first National Debt began shortly after the founding of this country.  We had gone to war with England and we had to borrow some cash from a variety of sources including extended credit from France and others.  Alexander Hamilton wanted to create a Central Bank in order to kind of create a consortium of various state and local banks so that eventually there could be a single currency and a place to find out how all the colonies could count up the amount each one owed to others they had borrowed resource cash or property.  The accumulated National Debt is now about $16.5 Trillion dollars.  This includes all the money borrowed and spent by the United States Government.  It does not include what we will need borrow – next year.

The Annual Deficit in any Budget goes like this:  You estimated how much you need to spend to support your cost of doing business for the year ahead.  You find that by buying too much, you will not have enough money to make all your payments for the year ahead.  You then determine that you will need to borrow enough money to pay your creditors in the year ahead.  Because you have good credit; you put those purchases on your personal credit cards…pay some big interest – but are able to make your payments for that year in spite of your over spending.  Those tough choices that might restrict your fine dining experiences, your heavy car payments, the kids education costs, your mortgage or rent payments, your various Medical, Dental and Prescription Drug costs……and of course your vacation and those gifts for family members.  It is all pretty simple; spend too much and you will have to borrow more money to get you through.

Politicians are cute – they love to confuse everyone and then laugh heartily amongst themselves; “The people are just so dumb! – Let’s get lunch!”

The next issue that gets confusing is: The cost of Social Security payments to seniors and those that have lost either their life partner or parents. Everyone that pays into Social Security has the option of collecting a payment when they turn 62 years old (about 2/3rds of a normal return) or at now closer to 67 years old. Each person has spent at least 14 years into the system and made payments from their weekly, monthly or annual pay – over that time. Originally, this stand alone system started out as a menial payment called Old Age Assistance. Then it went to Old Age Benefits. This system was created under FDR….in the 30′s. Democratic Presidential Candidate Al Gore talked a great deal about the “Social Security Lock Box”. The idea was that the government could borrow money out of the Social Security System. That all the money collected under the Social Security program should remain there. That hasn’t happened. The Congress has stolen the Social Security money and they should all go to jail, no matter who did it. No matter how rich or poor you are you get Social Security if you quality for the number of years of payments. Social Security is known as a “Earned Federal Benefit” and not an “Entitlement”!

The next confusing issue is: Medicare! Medicare is for people who get old, 62 to 65 and above. They can join this system and pay a moderate fee to be covered under this government based program. Medicare is designed for old folks. Their choices are restricted but no matter how rich or poor you are, once a year you can apply for an affordable Part A or B or C or D. You can also get what they call “Medicare Advantage” if you are willing to pay an additional monthly payment. Again, this system was created and paid into over your life in the workforce. These are also called “earned federal benefits”. Naturally, as the price of HealthCare grows there is a tendency to raise the annual premiums for each category. When politicians call this benefit an “Entitlement” they are lying to you and should also go directly to jail. Dental coverage in not included and never has been,

Politicians are cute – they love to confuse everyone and then laugh heartily amongst themselves; “The people are just so dumb! – Let’s get lunch!”

The next confusing issue is Medicaid! Medicaid is not a Federal program. Medicaid benefits vary from State to State with a wide variation on payments and benefits, depending completely on the State involved. Medicaid must be qualified for. You must be poor to get Medicaid. You must be willing to relinquish all your personal wealth and belonging in some cases to receive Medicaid. Medicaid is designed not only for the poor but the great amount of Uninsurable folks that have a variety of “pre-existing conditions” which create monthly premiums from Insurance Companies that are totally unaffordable for all but the most wealthy in our society. Those that are rich to begin with and making their monthly Health Insurance premiums…may in fact run out of cash when major Cancer, AIDS or other debilitating disease is found. Soon, their resources are drained and they may in fact be stuck applying for Medicaid. To be sure, Medicaid is an “Entitlement Program” and a necessary back stop we would argue.

The next big confusion reigns over Food Stamps! In the good old days, only the most poor in our society could receive Food Stamps. The only way you could get Food Stamps was if you were homeless, mentally disabled, physically disabled or financially destitute. Today, their are approximately 46 million Americans receiving Food Stamps. The reason for this is based on Ross Perot and “the giant sucking sound” that he prognosticated when NAFTA was passed in the late 90′s and jobs left American for foreign soil. Middle Class Manufacturing – gone. The high-tech revolution added to the lost jobs through a variety of automation and so-called productivity advances. There are no more pay phones or plethora of telephone operators. There are far less customer service representatives that reside in the the United States. There are far less Middle Manager jobs…..and the list goes on and on. There are more Wal-marts which only allow workers 20 hours a week of work so that they don’t have to pay for their HealthCare. There are more Costco’s, Targets, Dollar Stores and fast food operations. People working in these locations do not make enough money to survive without Food Stamps! This is a “Federal Entitlement Program”……and a necessary one for those with families or those with rents so high….they cannot afford required health prescriptions…let alone food. Another euphemism for these folks: “Working Families”!

Politicians are cute – they love to confuse everyone and then laugh heartily amongst themselves; “The people are just so dumb! – Let’s get lunch!”

As we listen endlessly to “pundit obsession talk” on almost every television channel, we are then forced to listen to rhetorical lies and misrepresentations by the so-called political experts, analysts, think tank fellows, doctors, lawyers and indian chiefs – between terrible advertising for Prescription drugs, Shingle Treatment and Erectile Dysfunction, Mental Depression and another list to choke the proverbial horse…..we have to wonder: Why do we put up with politicians that won’t make manufacturers list what is in our food…for example? Why do we have to listen to those that want to disarm the citizenry due to 100 folks out of 320 million that want to kill small children? Why do we have to listen to partisan non-sense when indeed there are many quite important issues which are facing our society? Why have the politicians not put the awful felonious bankers that caused the fall of our fiscal health into jail or incarceration? Why do we all continue to put up with the lies and misrepresentations and say nothing? Why do we put up with the Corporate Welfare for Big Oil, Big Pharma, Big Chemical, Big Agriculture and HealthCare Facilities and Health Care Insurance in general? How about all the debt for unpaid Public Employee Pensions and Retirement payments to come?

Politicians are cute – they love to confuse everyone and then laugh heartily amongst themselves; “The people are just so dumb! – Let’s get lunch!”

The National Debt (since 1776) and our Annual Federal Deficit Confusion! Yes, it isn’t space science or brain surgery…..it is strictly for robots!

Hopefully, two politicians will read this and be able to finally understand the difference between a DEBT and a DEFICIT. Most 2nd already graders know!

(Update from Greg)

National Debt Increases by President

((Illustration courtesy of someone other than the Winships.  Specifically, here: http://arthuride.wordpress.com/2011/06/12/reagan-bush-clinton-bush-obama-and-the-national-debt-and-education/)

 


About Ron & Anna Winship

Independent News Producers/Writers and Directors for Parker-Longbow Productions. Independent Programming which includes a broad variety of Political, Entertainment and Professional Personalities. Cutting Edge - a talk show...is the flagship of over 30 URL websites developed or under development. The Winships have been blogging for the Orange Juice since back when nickels had buffalos on them, and men wore onions attached to their belts, because it was the fashion back then.