If the federal government used the same accounting standards business must use...

Discussion in 'Economics' started by ByLoSellHi, Jun 14, 2007.

  1. The annual deficit would be 1.3 trillion.

    The national debt would be 59.1 trillion.


    According to USAToday:

    Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later. The federal government does not follow the rule, so promises for Social Security and Medicare don’t show up when the government reports its financial condition.

    This means that, to get votes, politicians can make promises today that will be paid for tomorrow, without putting aside the reserves to ensure that the government will be able to honor the commitments they make. Or, as Wimpie used to say in the Popeye cartoon, “I’ll gladly pay you Tuesday for a hamburger today.”

    Inevitably, these promises become obligations of future generations of taxpayers. Reports USAToday:

    Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined. Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.
  2. TGregg


    A trillion is a million million. Enough money to make a million people millionaires.

    At a population of 300 million, 60 trillion is about 200k each. But about half the population (over 21) doesn't hardly pay income taxes, so if you are a "winner in life's lottery" or plan to become one, count on owing about 400 grand. Plus the same for your spouse and each of your kids.

    A few trillion here and a few trillion there, and pretty soon we're talkin' real money.
  3. Good reason why I'm going to amass $10-20M and take it out of the country. It's not worth the taxation, I don't feel I get what I pay for.

    At least I'd rather give money that attempts to educate with cheap/free college and care for it's citizen's health. Dare I say France!? Or Canada?! We pay almost as much in taxes and I can't say I see the benefits...war, horrific crime rates, a majority that doesn't believe in evolution, etc.


    I hate to say it, but Americans have never been the most worldly people and it only appears to be getting worse to me. America seems so strangely disconnected from the rest of the world and I hate having to struggle to deal with people who don't know anything about anything outside of the country.

    If you live outside of certain more well educated hubs of the country(NYC, Boston, Chicago, etc.) attempt to talk about politics in Pakistan, Darfur, or even fucking Iraq. Americans don't even know about the war taking place in Iraq.

    The federal government is the worst run business in this country from a fiscal standpoint and sadly as citizens we're forced to invest in it...my goal is to no longer do that in the near future.

    This country is leading the race to the bottom!

  4. Daal


    Most of the $60 trillion wont be paid so I dont find it that unfair not to count on the official debt