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The American Debt Debacle

Updated on August 2, 2011
Where will it all end, how can we keep going like this, what will the future be?
Where will it all end, how can we keep going like this, what will the future be?

Will America ever have a balanced budget again?

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Do you believe we are headed for another great depression.

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Do you believe the illegal aliens added to the downfall of the California budget?

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Unless you live under a rock you are probably aware of America's debt problem. Now Obama is predicting a financial Armageddon unless the debt ceiling is raised, which means, of course, that we have to borrow more money from the Chinese, if they are willing to borrow more money to us. Failure to raise the debt ceiling will result in default and America's triple AAA credit rating will diminish, which of course is not a good thing.

They want us to believe the debt is a terribly complicated thing, and it probably is, but it should not be. Basically the US spends money on 4 things. Social security, medicare/medicaid, the military, and servicing and debt. All the other programs are miniscule in comparison. Sure, we could cut back on some other programs, but they tell us that it would be a drop of water in a vast ocean. I, however think we should cut back on some of these other programs, after all a million dollars here and a million dollars there do tend to add up.

So what does all this mean? Well, millions of social security checks may not go out this month, and thousands of seniors and the disabled will be set adrift into a sea of financial unrest and decay. But it does not end there, all those millions of social security checks are an instant money transfusion into the economy every month. Millions of jobs rely on social security and medicare/medicaid. Millions of medical practitioners, nursing homes, assisted living, hospitals and everything connected to them, make their bread and butter off the social security and medicare/medicaid system. Take this away, and we will have millions more people in the unemployment lines. I don't think this is what we need right now, not to mention all the suffering the seniors and the disabled would have to go through.

Actually, the American economy is nothing more than a giant Ponzi scheme. The young working force pays in so that the older people can retire and collect social security. Sure, those older people paid in too, however the government in their infinite wisdom decided to take money out of social security, (when there was a surplus), and used that surplus to fund a multitude of other programs, which of course they should not have done. Now, social security is in trouble, and those younger people will probably never see any return on the money they are paying in now, unless somehow the government can keep the giant Ponzi scam going.

Then there is all the money we owe to the Chinese. Time and time again, cultures who based their economies on usury, (which means they borrowed money and payed it back plus interest), went under. Many ancient cultures banned usury, and to this day, in Muslim countries it is illegal. Even mighty Rome went under because of usury. In 1913 our government decided the usury system would serve them well. How's that system working for us now? Why must we constantly repeat the mistakes of the past? Where is common sense?

Today those clowns on Capital Hill are trying to figure out what to do with the economy. I have a few suggestions for them.

The Congress, and President Obama all need their pay and benefits cut in half. When they start doing a better job, then they can get a raise. They are totally out of touch with the average American who is suffering. They don't think about their finances every waking moment and wonder what they can afford to eat on any given day. They have no idea what the homeless and unemployed are going through, and they don't care either.

Social security and unemployment checks should never be on the chopping block. Furthermore, people should remain on unemployment until the unemployment office can find them a suitable job. Then if they refuse that job, their benefits terminate. I just do not think it is right to terminate unemployment benefits after so many weeks when millions have no hope of finding a job. Of course sometimes the unemployed may find work in a different location. The government should get into the business of relocating these workers. We need to get America working again.

No American aid for non Americans! What does that mean?? No social programs for the millions of Mexicans in this county. Where I live the majority of people on food stamps and section 8 housing are Mexicans to the point where a native of Wisconsin who has paid taxes their entire life cannot get any help when they fall on hard times. This has to end. The Mexicans come here illegally and milk the system dry. We simply cannot afford this anymore. Please don't give me the crap that Americans refuse the work that Mexicans will do. Americans want a living wage for the work that they do. Most would happily be out there picking cucumbers for 10.00 an hour!

We need to bring the troops home. We can no longer afford to police the entire world. Let's bring our troops home and put them to work on the infrastructure of America which is in dire need of repair. That way they would not add to the unemployment problem and we would get our country's infrastructure back in shape. We need to step back and leave well enough alone where other countries are concerned. These countries all hate America because we are getting involved when we should be minding our own business. Live and let live.

Tighten the tax loopholes. If the government is in debt, it needs to collect all that it has coming due to them. For those who complain about paying their taxes, I just tell them to go and check out the tax rate and standard of living in other countries. See how well that works for you!

We need to outlaw the pork, all pork! The government spends billions of dollars on pork every year. This is where special interests come into play. Within every bill they sneak in these dirty little deals that cost billions of dollars. Do you care about the sex lives of jelly fish, or the migration of gnats?? Ridiculous right?? Well, you are paying for all of that and much more and it has to end. If someone wants to spend money foolishly, they should do it on their own time and dime, and not the taxpayers hard earned dollars.

Lobbyists need to be outlawed. Obama said he would get rid of the lobbyists, when does he plan on doing that? We cannot afford special interest groups, this is not what democracy is all about. The US government hands over billions of dollars of your hard earned money to these con artists, its no wonder we are broke and in debt. What a joke on us the American people.

I thought Obama was going to have a transparent government, but nothing has changed, it is just business as usual. When big banks get in trouble they are bailed out with your hard earned dollars, when you get into trouble, who bails you out? People have to fight tooth and nail for the benefits they have coming to them. Its a JOKE!

We need to take this country back, it belongs to US, the people, not the idiots in Washington, who are basically a bunch of corrupt liars. One day the top is going to blow off and maybe that is a good thing. The multimillionaires on Capitol Hill tell us we have to tighten our belts and sacrifice more. They don't get it, do they? How about they start to sacrifice for a change? I bet that 50 average Americans could go to Washington and straighten out the debt debacle within a week. All it takes is guts and a little common sense.


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    • ib radmasters profile image

      ib radmasters 5 years ago from Southern California


      This hub had some good points and should have garnered more comments.

      Apathy is the biggest problem next to the government.

      The size and scope of the government needs to be severely reduced. Yet, even after the 2008 Economic Collapse in the US, the government continues to grow.

    • Jessi10 profile image

      Jessica Rangel 5 years ago from Lancaster, CA

      I have never thought about our State budget this way. Thank you for writing this. Quite an eye opener! Voted up!

    • Highvoltagewriter profile image

      William Benner 6 years ago from Savannah GA.

      Yea girl you should check them out! Our buddy Lone Ranger has been hanging out at my latest evolution hub and his comments have been great! I wish he would write some hubs for he a great writer!

    • magnoliazz profile image

      magnoliazz 6 years ago from Wisconsin

      Thank you Highvoltagewriter! I am looking forward to your new hubs.

    • Highvoltagewriter profile image

      William Benner 6 years ago from Savannah GA.

      Some how I missed this one...and I will bookmark it and reread it. I just want to say you out did yourself on this, well done! I have just finished another hub on evolution that I am sure will stir up some more hornets! I will also be publishing one on the connection between mental illness and demons!

    • magnoliazz profile image

      magnoliazz 6 years ago from Wisconsin

      AM Werner, thanks so much for stopping by, you have good common sense. I agree with you, greed is the major problem. People have forgotten how to live simple. For instance, who in their right mind would pay someone 25.00 to paint your toenails? That is just one example. In my case, I think of everything that I really need that 25.00 could buy, like 20 bales of hay for the winter. When I look at things that way, I would rather paint my own toenails..LOL! There are 1000s of ways that the average American simply wastes money, and why should our government be any different? We live in a culture of greed, not need.

      Everyone is trying to get ahead these days, what they are trying to do is get ahead of their neighbor. We live in a land of shallow and vain people, but that too will come to an end, and I see it as character building that is way overdue.

      Lone Ranger, I always look forward to reading your comments. You are right, the rich and powerful will get as much as they can and then they will probably go off shore somewhere once America turns into a third world country. There is little loyalty in this world today, and big business in America could write a book about it. Someday, I hope they will have to pay somehow. We will probably never get our manufacturing base back again, and without it, we are going to be in a perpetual state of recession. Thank you, I appreciate your comments.

    • profile image

      Lone Ranger 6 years ago

      My Dove:

      The answer to our little problem is really rather simple and Werner is right when he said that when people are confronted with the simple solution they just "...don't like the answer."

      We all live on the USS "Uncle Sam". The wealthy folk and politicians of this country in their greed, noticed that our ship was pinned together with nails made of silver and gold. In their haste to have it all for themselves, they each have taken turns pulling out said nails until there is nothing left to hold the great ship together. They care not because they have escape pods ready for immediate departure once the final pins are pulled and their loot is secured.

    • A M Werner profile image

      Allen Werner 6 years ago from West Allis

      Mag, you hit many of the problems right on the head. People often choose to call the answers simplistic because what they are really saying is, they don't like the answer. They want to complicate it so greed can still win out. It was greed that got the nation into this mess. People who owned businesses wanted to make not only a little profit, but a lot of profit. People who worked wanted to make not only a little profit, but a lot of profit. When too many people get away from living simply, too many other people have to suffer for it. I think the only thing you missed was the tax-loopholes for the wealthy in this nation, the ones people try to call 'job creators.' If this is a land of opportunity, as it is claimed, then everyone is capable of becoming a 'job creator', even the small business owners. The big companies are sending all the jobs overseas which means we have to give the small business owners the majority of help. They keep talking about taking away tax breaks for people making over $250,000 a year. Perhaps the aim of taxation needs to go a little higher, like those above the one and two million mark. Those are the ones who are capable of reorganizing and sending jobs overseas. More corner shops and people looking to make a living, not a life-savings, would do wonders for any country. Peace

    • magnoliazz profile image

      magnoliazz 6 years ago from Wisconsin

      Yes 1delata5, you are right there are some people who collect social security and they don't need it. I know a very wealthy couple, they have millions, and they collect social security, but it don;t end there, they sign up for every government handout they can get. Just the other day, they had a nurse come over to help them with their medications. This was a free service paid for by our county. It was not intended for the wealthy, however it was not stated as such, and of course these people took advantage of that. There is a real element of greed going on here too.The wealthy will bend over backwards to get every government dollar they can get.

      There should be laws that close these loopholes, but of course, the wealthy write the laws in the first place.

      Dreamreachout, thank you for your loyalty. It would be a bad day for India if China ruled the roost. China does not believe in human rights the way we do. Hopefully America will get back to normal soon. I don't think people truly understand the vast wealth of America. We are finding oil and natural gas within our borders, and it is just a matter of time before we stop importing oil, and that is going to change everything. 10 years from now America will be bigger and better than ever. This recession is good for us, because it gets the average American away from the TV and makes them face the issues of the day, once that happens, things change for the better. The New World Order is not going to win.

    • fivedeltaone profile image

      fivedeltaone 6 years ago

      I agree the money is pumped back in which I would think is true of the defense spending as well. I remember when I first got married as a private in the army making about 1500 per month for sure every dollar was pumped back in. I would say though IMHO that many of the social security recipients don't need the money, some means testing would cut the rich recipients out of the equation. I would also say that I definitely would cut defense spending because the overwhelming majority of money we spend for defense is due to mercy on our part all those schools we built in afghanistan and iraq are defense dollars and I think that is a total waste. If we moved the "retirement age" up 5-8 years we could save that money also. Everything the government "gives" to someone it takes from someone else.

    • magnoliazz profile image

      magnoliazz 6 years ago from Wisconsin

      1delata5...thanks for your comment. However I would like you to stop and consider the fact that all the social security and medicare paid out every month are pumped right back into the economy, imagine what it would be like if that money were not there. Millions more jobs would be down the drain.

    • Peter Owen profile image

      Peter Owen 6 years ago from West Hempstead, NY

      Liked your hub but I think the suggestions are unrealistic

    • profile image

      dreamreachout 6 years ago

      Magzz, the situation is really aweful and we, the non Americans dont want China to dominate the world in the future!! I sincerely hope that your administration is able to work out something soon and keep the World in balance!!

    • fivedeltaone profile image

      fivedeltaone 6 years ago

      I think you may have an overly simplistic strategic plan regarding foreign affairs. I would tend to disagree that social security needs to be left as is. When the new deal was originally installed the average American spent less than five years in it before they died. Social security was established so people in their last few years of life who were unable to work were given a basic allowance to keep them off the street. I think means testing for the benefit would reduce the load in a responsible way as well as raising the age at which you start to receive it, in a world where the average person lives to 55 then 65 is a good time to start to receive benefits, now 72 or 75 would be appropriate. The famous "close the loop hole" argument i think in many was is a misdirection play by those in power when they say close loop holes they mean the one's they themselves don't support leaving others in place. The president would like to close mortgage interest deduction "loop holes" but leave union health care "loop holes" in place. Anyway at least you are engaged in the discussion overall I think it was well thought out. keep up the good hub.

    • North Wind profile image

      North Wind 6 years ago from The World (for now)

      I have been struggling to understand this social security is it basically that the government borrowed from people's pensions and are having trouble paying it back? Is that why people are worried that in a few years it might not exist?

      Also the debt ceiling being raised makes more debt doesn't it? Or is it like refinancing a loan?