Letter to the editor: America’s ballooning deficit
Only hours after the outcome of the election was known, both parties have expressed as their most pressing goal to address the ballooning deficit. Our debt levels have reached European proportions. During the four years of Obama, the nation has raked up more debt than during all former U.S. presidents, combined.
Next will be to address entitlements. Medicare is projected to run out of money in 2024, Social Security in 2033.
In addressing these issues, we have to be prepared for the same austerity measures that are now being implemented in Europe.
The net results will be massive job losses, a general reduction in standards of living and fewer monies left over for those who really need it.
Our debt levels (at 100 percent of GDP) is where many European nations are right now, and all you have to do is to look at the sacrifices being made over there.
Let me illustrate with an example:
You live in a household with an annual income of $100,000. In the last four years, your actual spending has been $144,000 (reminder: of every dollar spent by the US government in the last four years, 44 cents has been borrowed). Going forward, your household will not only have to bring spending to the level of income, $100,000, but also to be paying off on the accumulated debt.
Is that going to have an adverse effect on your standard of living? You better believe it!
The longer we wait to address these critical issues, the more painful it’s going to be.
Karsten Malmos
