America's (Un-)Balance Sheet
America’s (Un-)Balance Sheet
· Estimated cost of rebuilding after hurricane Katrina [1] $ 300 Billion
· Estimated total cost of the Iraq War [2] $ 1.6 Trillion
[ … At no time in
the past has America both waged a war and cut
taxes:
the rich as well as
poor bore the economic sacrifice …
]
· What the Government owes Social Security Trust Fund [3] $ 1.6 Trillion
· Current US international debt [4] $ 2.0 Trillion
· Credit needed from foreign countries (Japan, China, Korea, Europe)
to support continuing US indebtedness, every day [5] $ 2.0 B / day
· Current national debt [6] $ 7.9 Trillion
· Total American debt [7] $ 40 Trillion
· Personal savings rate (lowest on record) [8] - 0.6 %
· Decline in value of US dollar since 2001 [9] 26 %
· Americans living paycheck-to-paycheck [10] 28 %
· Current minimum wage (same since 1996) [11] $ 10,300 / yr.
· Poverty threshold (two adults, two children) [12] $ 19,350 / yr.
· Children in households benefiting if min. wage lifted [13] 10 Million
[… Congress has raised its own pay 7
times since 1996 … ]
· Interest on the National Debt (as % of budget) [3] 17 %
[ … this, at the lowest rates in 45
years … which may not last
…]
· Projected National Debt Interest (% of budget) in 2031 [14] 50 %
[ … when half the
budget goes to servicing the debt, we’re in big
trouble … ]
Federal Balance Sheet Effects on
New Mexico:
· New Mexico federal budget cut for clean water programs [a] $ 7.2 Million
· Native American Housing Block grants cut [b] $ 106 Million
· NM's Medicaid federal portion cut in 2006 budget [c] $ 148 Million
· NM No Child Left Behind Act underfunded [d] $ 154 Million
· Cannon AFB realignment, cost to NM [e] $ 211 Million
Some have commented that the US government’s response to hurricane Katrina resembled the ineptitude of a third-world nation. In economic terms, we are the greatest debtor nation of all time, a dubious distinction. If the current trend continues, we will resemble a third-world nation in more ways than just disaster response.
References:
1. http://news.findlaw.com/ap/p/56/09-10-2005/8e9b00386e453e00.html
http://www.house.gov/paul/tst/tst2005/tst091905.htm
2. http://www.truthout.org/docs_2005/082105D.shtml
3. http://www.uagrad.org/Alumnus/w05/broke.html
4. http://www.research.stlouisfed.org/fred2/series/FDHBFIN
http://www.morganstanley.com/GEFdata/digests/20050919-mon.html#anchor0
5.
http://socialize.morningstar.com/NewSocialize/asp/FullConv.asp?forumId=F100000065&lastConvSeq=88
6. http://www.publicdebt.treas.gov/opd/opdpenny.htm
7. http://mwhodges.home.att.net/nat-debt/debt-nat.htm
8. http://www.sptimes.com/2005/09/02/Business/US_savings_rate_hits_.shtml
http://www.321gold.com/editorials/shedlock/shedlock092005.html
http://www.321gold.com/editorials/richebacher/richebacher091905.html
9. http://www.frbatlanta.org/invoke.cfm?objectid=E4DCDB6F-4F9C-11D5-93360020352A7A95&method=display
10. http://www.mailtribune.com/archive/2005/0710/biz/stories/02biz.htm
11. http://www.policyalmanac.org/economic/minimum_wage.shtml
12. 2005 HHS Poverty Guidelines, (http://aspe.hhs.gov/poverty/05poverty.shtml)
13. http://okimc.org/newswire.php?story_id=771
14. http://www.macleans.ca/topstories/world/article.jsp?content=20050307_101541_101541
a.
http://www.nrdc.org/media/docs/050211.pdf
b.
http://www.nlihc.org/news/020905.html
c.
http://www.chn.org/pdf/factsheets/NewMexico.pdf
d. http://www.nationalpriorities.org/auxiliary/maps_files/the_presidents_budget:_impact_on_the_states/NM.pdf
e.
http://www.bizjournals.com/albuquerque/stories/2005/08/22/daily24.html?f=et201&hbx=e_du