Deficit vs Debt and Your Pension Is a Lie

From a comment at Shot In The Dark:

It’s good to see Liberals focus on the deficit. But that’s only part of the problem and the most easily solved. I’ll lay it out again for those who forgot the basic facts.

The “deficit” is how much the budget is short this year. We planned to spend 100, we took in 80, the deficit is 20. No problem, we borrow 20, budget balanced. Better still, we cut spending by 20. If all you’re worried about is the annual shortfall, slash entitlements and everything is cool.

The “debt” is how much we’ve borrowed to cover those annual deficits, year after year after year. The total debt is right around $21 Trillion dollars. There’s no plan to repay the debt because it cannot realistically be done. If you devoted 100% of all tax revenues to payments, it would take five years to pay off the debt and during that time we’d have no Congress, no Army, no food stamps, no college loans. Nobody would go for that nor would our enemies give us that much breathing room. Any smaller payment plan takes too long – the math theoretically works but the political willpower could never be sustained.

And those are the easy problems. The “debt” is the sum of all the loans we already took, it does not include the cost of covering promises we made such as future payments for Social Security. Your retirement plan doesn’t exist and everybody has known it for years.

Your pension is a lie

There are three possibilities: America can cut spending by 50% and use the savings to pay off the debt over several generations; America can repudiate the debt and deal with the resulting global financial crisis; America can complain about Trump’s tweets and ignore the problem.

I guess we know the Liberal and RINO plan.

I’m headed to Fleet Farm to stock up on bullets.

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