someone was able to take my other question and turn it into a mockery of the republicans... surprised? NO. However, it does make me want to ask another question, and how does this deficit effect us? I am looking for some real answers. Are we paying more taxes to cover their asses now? This is one thing in the government I am not familiar with. I know the spending issues are there... but this confuses me, I will admit it.
2006-10-05 06:15:27 · 7 answers · asked by Anonymous in Politics & Government ➔ Politics
http://en.wikipedia.org/wiki/U.S._national_debt
2006-10-05 06:20:52 · answer #1 · answered by notme 5 · 4⤊ 0⤋
It is exactly the same thing that happens when you use your credit card .you buy something today and pay for it at another time .Tillit is paid you owe intrest on it and the longer it goes unpaid the more intrest you pay. The larger the debt the more money that must be paid each year and we have a smaller amount of money to spend .
Agood healthy economy would have capitol to spend from reserves of taxes collected .Instead we have debts .All of us must pay this debt .Until you reach the age of 65 and collect on social security .Now if you begin to collect more then has been paid into this then it becomes a debt that must be paid to the people who payed into the system .This will become a problem in the future as more people are collecting then paying in .
2006-10-05 13:40:29 · answer #2 · answered by playtoofast 6 · 1⤊ 0⤋
Pure and simple-- the US Governement is spending more money every year than it takes in. So every year, we have a budget deficit (e.g. not enough money) that has to be made up by borrowing money via selling government securities (e.g. Gov Bonds, etc.)
We, the taxpayer and the government have to pay interest on those (just like you do on loans you take out). Different is-- we don't pay on the principle. We only pay the interest. I don't remember exact number but its easily $300 billion a year (if not more).
Our national debt (the total money we owe) is over $8 Trillion now and growing faster every year.
The government also takes money from Social security and other trust funds under the theory that Gov Bonds are secure investments. (Well for now they are).
It also puts pressure on the markets in that demand for investment in bonds takes away from other investments opportunities and money supply.
Lastly, it also puts the US in a precarious position as many foreign countries buy US bonds. They are financing our debt. If they decide to "hurt us" they can stop buying or dump those bonds.
2006-10-05 13:22:10 · answer #3 · answered by dapixelator 6 · 3⤊ 0⤋
less of the tax money you do pay is being used for things that will benefit americans, it's just like getting a loan from the bank, when you get a loan you also have to pay interest, we are paying hundreds of billions of dollars in interest every year to the people that are lending us the money to cover the national debt
2006-10-05 13:20:20 · answer #4 · answered by Nick F 6 · 0⤊ 0⤋
Scare tactic against tax payers.
2006-10-05 13:17:51 · answer #5 · answered by kekeke 5 · 1⤊ 0⤋
What a strange question
THE DEFICIT WAS CAUSED BY BUSH AND HIS HOOLIGANS !
2006-10-05 13:31:22 · answer #6 · answered by ast5792 1 · 0⤊ 0⤋
i dont know but i like your pic !!!
: )
2006-10-05 13:17:50 · answer #7 · answered by Big R 6 · 1⤊ 1⤋