When President Bush entered office in 2000, the federal debt was $5.7 trillion.
Eight years later when President Obama entered office in 2008, the federal debt had nearly doubled to $10.6 trillion.
The current federal debt is $17.5 trillion and is projected to be just over $20 trillion when President Obama leaves office in three years; once again, doubling in only 8 years.
Unfortunately, the economy has an annual GDP of only $16.3 trillion today. There is no government in history that been able to pay its debts once the national debt exceeds the economic output of the country. The U.S. passed that point in 2011 and is continuing to increase its debt instead of reducing it.
For anyone who thinks this isn’t a problem, let’s look at two more ways to view our national debt:
- U.S. Federal debt per U.S. citizen $55,000
- U.S. Federal debt per U.S. taxpayer $151,000
Can you write a check to pay for your personal share of the federal debt?
How about just the interest on your personal share of the federal debt for 2013 of $3,700?
Ok, the size of the federal debt still doesn’t concern you yet? Let’s move on to the final federal debt number.
Today, the U.S. federal government has unfunded liabilities. These are promises that have already made to retirees, veterans, government employees, Obamacare, etc. But there is no plan to raise the money to pay for them, no source of funds, no available funds, which is why they are labeled as “unfunded.” This U.S. unfunded liability balance is $129.3 trillion today, or $1,116,000 per taxpayer.
That’s right. Sooner or later, each taxpayer is liable for the $1,116,000 in unfunded promises that politicians have made on your behalf. Do you still think financial illiteracy is not a problem in Washington?