The federal deficit is a hot topic these days. At least, it should be. The United States federal deficit is getting out of control. As of August 14, 2014, the U.S. federal deficit was over $17.6 trillion. But, how is the federal deficit calculated?
The federal deficit is determined by the formula: Government’s Total Expenses – Government’s Total Income. If the expenses are higher than income, it is called a deficit. If the income is higher than the expenses, it is called a surplus.
It is popular to compare the federal deficits between President Barack Obama and his predecessor President George W. Bush. Both presidents have incurred massive debt for the country for different reason. President Bush incurred massive debt by supporting wars in Iraq and Afghanistan in response to the attack on September 11, 2001. President Obama has incurred massive debt by providing social welfare programs such as the 2009 economic stimulus package, extended unemployment benefits, and the Affordable Care Act as well as continuing the war in Afghanistan.
The deficits during each president are documented below based upon www.WhiteHouse.gov. Notice that there was a surplus (more tax revenue than spending) in 2001. That year was when the U.S. was attacked and the World Trade Center Towers collapsed and the Pentagon was struck. The second Gulf War was staged and the Afghanistan War began. In 2014, the war continued in Afghanistan and social welfare programs are excessively supporting those individuals who cannot locate full-time employment. Surplus figures are shown in black, while deficit spending is shown in red.
2001 $128,200,000,000 Bush
2002 ($157,800,000,000) Bush
2003 ($377,600,000,000) Bush
2004 ($412,700,000,000) Bush
2005 ($318,300,000,000) Bush
2006 ($248,200,000,000) Bush
2007 ($160,700,000,000) Bush
2008 ($458,600,000,000) Bush
2009 ($1,846,500,000,000) Obama
2010 ($1,294,400,000,000) Obama
2011 ($1,299,600,000,000) Obama
2012 ($1,087,000,000,000) Obama
2013 ($679,500,000,000) Obama
After a quick glance, it is clear that the country is spending much more than the revenue being generated. Another word for government revenue is taxation. The deficit that has been accumulated since 2001 is mind-boggling. How can spending be so incredibly high? One reason is because the government has increased in size since 2001 under Bush; however, Obama has taken it to a whole new level.
It is impossible for our generation or the next four generations to pay off this debt. Based upon the 2010 U.S. census, the population of the United States was 308,745,538. Each citizen would be responsible for over $57,000 to pay off this debt. That a lot of money. Not practical to put that on everyone’s charge card, right?
The U.S. dollar bill is 6 inches in length. The circumference of the plant earth is 24,901 miles. If we were to lay dollar bills end to end that totalled $17,6 trillion dollars, it would wrap around the earth 267,726 times!
Some of the largest expenses for the 2014 budget include: the Department of Defense at $526.6 billion; Department of Health and Human Services (Medicare and Medicaid) at $78.36 billions, and Department of Education at $71.2 billion. Now compare that to the budget for Small Business Administration of $0.8 billion. There isn’t a lot of focus on small business, which is the backbone of our economy.
The most likely source of immediate revenue is under our feet…oil and natural gas. Forget the wind and solar farms. They are extremely inefficient and should be used for convenient energy rather than our sole sources of energy. With advances in engineering, oil and natural gas can be extracted with very little environmental destruction. However, you wouldn’t believe that if you listen to the CBS News and The Anglo-Celt. There is also an article in support of fracking in the NY Times that provides a background on fracking. Please, do your own research before you jump to conclusions based upon slanted media hype.
Something must be done before the U.S. economy and the U.S. dollar collapses. This is very real and will be our nation’s downfall is not corrected very soon.