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US Government Debt and Surplus: Good, Bad, Neither?

Discussion in 'BBS Hangout: Debate & Discussion' started by Cohete Rojo, Sep 15, 2011.

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  1. Cohete Rojo

    Cohete Rojo Member

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    I was talking to an elderly gentleman the other day, we were having a discussion on government debt and whether or not it is best to cut US government programs because of their debt status. I said that the US government is not a business, and things like surplus and debt should not be as much of an interest to people when compared to the relevance of the service the government is providing.

    Obviously, while providing a service to the people we wish for the government to be effecient as possible. Government expenditures are paid for by taxes as well as government financing (debt or the printing of money). He then stated that we are all in fact sevants of the state. I couldn't argue with him, we all are taxed and it is likely that we will not stop taxing ourselves. I think he really wanted to talk about the Astros, however the thought of it seemed to sadden him.

    So I then raised the issue that cutting military spending would be the best possible route. I said that I felt because the WWII and Korean War ened long ago, that it would probably be a good idea to dismantle the bases and send the troops home and honorably discharge them.
     
    #1 Cohete Rojo, Sep 15, 2011
  2. pirc1

    pirc1 Member

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    Just like a company, carrying a certain amount of debt is not a bad idea, but too much debt will kill you. A country does not to have zero debt to function well. I am sure a couple trillions of debt is no problem for the US government, the problem is we have too much debt at this moment.
     
    #2 pirc1, Sep 15, 2011
  3. pgabriel

    pgabriel Educated Negro

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    i wonder what the us balance sheet looks like if you added up all the assets the government owns
     
    #3 pgabriel, Sep 15, 2011
  4. Dubious

    Dubious Member

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    Total capitalistic efficiency doesn't allow for human foibles. But Civil Service does.
     
    #4 Dubious, Sep 15, 2011
  5. Johndoe804

    Johndoe804 Member

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    The current level of debt isn't the problem. It's our future obligations that are a problem. The government isn't like a business in the typical sense, but the debt we do have makes us liable to other governments around the world. Everything they do must still be financed, and at some point other governments will not want to finance our government's projects. So, for now, the debt is sustainable. The big worry is how the government will be able to pay for future Medicare, Medicaid, and Social Security commitments.
     
    #5 Johndoe804, Sep 15, 2011
  6. cml750

    cml750 Member

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    The more debt the government incurs means the more interest they have to pay on the debt. As the debt increases then more and more of the tax dollars taken in have to go to pay the interest on the debt so the government needs more money to keep paying for military, entitlements, etc. while keeping up with the interest. Eventually, at the pace we are going, the interest on the debt will be more than the total tax dollars taken in. This country desperately needs a smart military cutback that does not leave us defenseless and major entitlement reform. The status quo is unsustainable.
     
    #6 cml750, Sep 17, 2011
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