The United States hit the $31.4 trillion debt ceiling. California has a budget surplus of $97.5 billion and will have a budget deficit in 2023 of $40 billion. Thank you Daniel Torunian for a very eye opening report in the Daily Journal guest perspective.
The U.S. government is continuing spending money it does not have … one very present example: $10 billion and more to support Ukraine in a war situation. The president of Ukraine demanding never-ending financial and military support from the European NATO countries and the United States. Guess who pays for healthcare for immigrants in this country illegally but is considering cutting out Medicaid for the needy in the United States? And there is the prognosis of cutting Social Security and Medicare where hard-working people have paid into in the hope of having financial support in later life. The homeless problem in our country is getting worse and all the good talks/no action bring no solution.
I grew up learning you can only spend money you have and saved, you cannot live on credit, on borrowing.
I did not have credit cards until I came to the United States and was told I need credit cards to build up a credit history to borrow money for maybe a car loan, a student loan or a house loan. However, credit is only good if you pay back in the requested time limit, otherwise the interest, penalties and fees will be skyrocketing.
There is the billion/trillion dollar question: how can a deficit, a debt be overcome if unaffordable spending continues?
Excellent letter. Our government debt grew from 61% of GDP in 2007 to 122% of GDP now. Countries that grow their debt faster than their economy end up with high inflation. Taxing the wealthy and corporations would hardly dent our national debt. But it would cause businesses to pass through higher taxes to buyers and reduce investments in our economy. This would reduce our exports, increase interest rates and shrink our economy and tax base. If we don't reign in our government debt, the world economy will do for us with higher borrowing costs that eventually undermine the dollar as the world's reserve currency which would be devastating.
Well written, Ms. Thiel. I’m sure we’ll see more accounting shenanigans reported that will reduce our deficit. I’d recommend anyone nearing retirement age to sign up for Social Security as soon as you can and hopefully get back what you put into it. Imagine if, in CA, we didn’t lose $40 billion to criminals via EDD fraud, and if we stopped wasting money on the union giveaway known as the train-to-nowhere… We could probably build and house all the homeless in CA, maybe even in the country. I’d probably sell my home and claim homelessness…
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