Government Spending and the National Debt
National debt is a major problem facing America. During the current administration, the government has accumulated more debt than it did from the time George Washington took office to the time Bill Clinton took office. (Source) This has led the United States past the point of debt saturation.
The above chart explains that each dollar of new debt added to our economy produces negative 91 cents of productivity in terms of GDP. This means we’ve passed the limit of debt our country can sustain and any additional debt only acts to further cripple our economy.
Economic stimulus packages that rely on increased government borrowing will simply be rubbing salt in the wound. This chart also explains why the economy won’t benefit from continuing to lower a near rock bottom federal funds rate.
Table of Contents & Page Links
Introduction
Economic Problems
1) Income Inequality Influences the US Personal Savings Rate
2) Income Disparity Sparked by Low Top Marginal Tax Rates
3) Unequal Distribution of Wealth
4) Tax Breaks and Tax Loopholes for the Rich
5) Low Capital Gains Tax Rates Cause Investment Bubbles
6) Great Depression VS Great Recession
7) The Job Creators Myth Debunked
8) Government Spending and the National Debt
Economic Solutions
1) How To Fix Income Inequality
2) Restructuring is Needed to Stop Government Overspending
3) Use Taxes for Economic Recovery
Conclusion
Resources
Disclaimer:
This is a working paper and will be updated and expanded upon as time permits. All comments, questions, and alternative opinions are greatly appreciated.
About the Author – Brian Rogel
Senior SEO Manager at Silverback Strategies, Co-Founder of Helping the Underprivileged Grow, & Actor/Producer for Joey’s Town TV Show. Google+
Brian Rogel isn’t a household name but his analysis of wealth inequality could become household reading.
-YAHOO! News