During fiscal year 2011, the US government spent $3.7 trillion but it only brought in 2.4 trillion dollars.
“The government’s total indebtedness — its fiscal gap — now stands at $211 trillion, by my arithmetic. The fiscal gap is the difference, measured in present value, between all projected future spending obligations — including our huge defense expenditures and massive entitlement programs, as well as making interest and principal payments on the official debt — and all projected future taxes.” Professor Laurence J. Kotlikoff, CNN
The FT World Markets Index EX U.S. declined 3% in March.
President Obama's 2012 budget shows the debt soaring past $26 trillion a decade from now.
The US accounts for 45.7% percent of total military spending by the world's 171 governments and territories.
Adding in all of these non-DOD agencies' costs:
- The $20 billion in military retirement spending by the Treasury Department
- Military aid to countries like Israel and Pakistan
- Secret or black operations costs
- Homeland defense costs in the Department of Homeland Security
- The costs of caring for veterans of past and current wars in the Department of Veterans Affairs
- The budget for nuclear weapons is in the Department of Energy
Plus a share of the annual interest on the national debt gets total US defense-related spending up to $1 trillion.
Currently spending by the federal government accounts for 24% of GDP. In 2001, it accounted for 18%.
“The time for austerity is not today. If we were to put in austerity measures right now, it would take the economy in the wrong way.” White House Chief of Staff Jack Lew, NBC News, Meet the Press
Your government cannot spend more than the sum of what it has and what it can raise. The places a government can get its money from are:
- Taxes – no politician will raise taxes, they would never get re-elected
- Income – government income is small and limited
- Fines – revenue here is limited as well
The top 5% of all income earners already pay nearly 50% of all federal taxes.
The United States already has world's highest corporate tax rate (includes central government, regional and local taxes) at 39.5%.