To put this in more basic terms - a family's debt includes what is still owed on mortgages, credit cards, car and college loans, credit lines, money borrowed from other family members, and so forth. A family's deficit includes spending or borrowing more money than they earn in income, interest, investments, or gifts, etc.
A family's debt increases each year more is spent than is earned. Hopefully this is counterbalanced by an annual increase in salary, which would enable paying off some of the debt gradually. Unfortunately, an increase in salary usually results in greater spending - buying a larger home, car, newer appliances, and more before actually paying off personal debts.
The federal government has acted even more irresponsibly. Under Clinton's administration the national debt grew from $4.18 to $5.7 trillion. Under Bush it almost doubled, growing to $10.6 trillion. Under the current administration it has increased to $12.3 trillion in just one year and is growing at a rate of $4 billion daily! Almost half is owed to foreign countries.
Our national debt has outgrown our ability to pay it back based on current and projected expenditures. We're not even keeping up with paying the interest on our debt, which is why our national debt is growing out of control. Yet Congress and our current administration continues to believe that we can spend our way out of debt. When has this ever worked? Neither Republican nor Democratic administrations seem to have a clue.
Whether it's an individual or big government debt such as this requires that drastic and immediate action be taken. New spending must be avoided, all current programs must be cut, negotiations with holders of our debt must be begun to try to reduce what is owed, and new sources of revenue must be sought. None of this will please anyone.
I would like to know - when did our federal government get the idea that they have the right to spend more than the American people give them. Shame on them and shame on us for putting on blinders.
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