Fiscal irresponsibility: 2007 U.S. Budget

Quick question for you. How much more did the U.S. spend in 2007 than it “earned”? According to Wikipedia, the government will rake in $2.4 Trillion from 2007 taxes. The 2007 “budget” calls for $2.8 Trillion in expenditures, but this does not count supplemental “war on terror” funding of at least $70 Billion. So, last year our government spent $470 Billion more than it took in. That means the answer is: $470 B/$2,400 B = approx 20%. TWENTY PERCENT!

Let me say that again – in 2007 the U.S. government spent 20% more than it received.

What kind of example does this provide for us? No wonder the U.S. has a negative savings rate, and the dollar isn’t what it used to be. And, there’s no end in sight. According to early reports, the ‘08 budget calls for $410 B of deficit spending (and this is with war spending $120 B lower than 2007 levels. If you believe it’ll remain that low, I have a nice package of subprime mortgages I’d like to sell you…)

It gets worse. Due to many years of such atrocious “budgeting”, our government owes itself (social security and medicare “surpluses” that have already been spent), other countries, corporations, and individual bondholders $9.2 Trillion dollars – or in more real terms – $60,100 per working citizen (or $30,400 per man, woman, and child). And this is going up at a steady rate (over $1M/minute due to interest alone).

Ask yourself a question – how long would you be able to survive if you had $60,100 in additional debt and you spent 20% more than you made? I’m guessing bankruptcy would soon be calling for most of us (considering that the average working U.S citizen earns $32,140). This picture only gets worse once we consider that the U.S. population is aging, and soon there will be no social security and medicare “surpluses” for the government to spend. 

Isn’t this something we should care about? Not just care about – be horrified by! I think it’s our civic duty to implore the people authorizing the spending to change their ways. It’s why I voted for Ron Paul in the primary. I’m fairly certain he has no chance of winning (maybe he’ll get enough votes to make the other candidates nervious and inspire change) but at least I’m trying.

Are you?

Even more important – will you?

If you don’t want to vote for Ron Paul, how about writing your congressional representatives? I pledge to write my congressional representatives within 30 days. Anyone want to join me?