It is possible that I represent a modern (and decidedly non-avian) version of Chicken Little. It is also possible that those of us who are squawking about how serious our country’s economic/financial situation is may well be correct. I realize that math is not easy for everyone, but this is pretty straightforward:
We have now gotten to the point — as I noted yesterday — where if national defense, interstate highways, national parks, homeland security, and all other discretionary programs somehow became absolutely free, we’d still have a budget deficit. The White House Office of Management and Budget projects that in the current fiscal year (2011), mandatory spending alone will exceed all federal receipts. So even if we didn’t spend a single cent on discretionary programs, we still wouldn’t be able to balance our budget this year — let alone pay off any of the $14 trillion in debt that we have already accumulated.
Let’s recap, shall we? We have promised more than we can fullfill. This is the equivalent of my promising to spend more than my entire annual income on contractual debts: house, auto, school, etc. Oh, and I believe I’ll just stay current with the interest for now. The other spending that I do on food, clothing, writing materials, tablets, books, and such? Well, even if I cut all of that out (which does not make very much sense) I still can not meet my obligations. In short, I am bankrupt in fact and it would only be a matter of time before my creditors figured out the same.
This is where we are as a nation. God help us.