The talking heads say the latest funding crisis has been resolved and the federal government is back open for business!
But to call raising the debt ceiling a solution to the problem of excessive government spending is a lot like saying the cure for drunkenness is drinking more alcohol. You can’t borrow your way out of debt any more than you can drink yourself sober and sooner or later the root of the problem must be addressed.
In a nutshell the federal government takes in about two trillion in taxes, but spends three, so they’re borrowing a trillion dollars per year and adding it to the federal debt. One out of every three dollars the government spends is borrowed money.
Today the official federal debt (which doesn’t count a whole galaxy of other unfunded liabilities) is seventeen trillion dollars and in theory this is the public debt. So in a nation of three hundred and twenty million souls, each man, woman, and child, owes fifty-three thousand one hundred and twenty-five dollars.
$17,000,000,000,000 federal debt / 320,000,000 population = $53,125.
So now that Washington has agreed to increase the debt ceiling we can all look forward to owing even more. Problem Solved?