The USA earns around 3.25 trillion every year if the start being smart and save 500 billion$ of that every year in 40 years they'll pay all there debts of and once paid off continue saving so we don't end up like this again. Plus with more people going to college each year that number in revenue in expected to to grow. Also we need industries to come back to america. But with the whole pollution thing that might not be smart. Also if the USA creates the alternative energy source then that will automatically spark a staggering growth in economics so yeah I'm fourteen but still smarter than the government spenders.
America will pay off it's debt and I am sure of that. America has lots of natural resources such as oil, electricity and much more. However we have been preserving much of our resources such as oil and fossil fuels. Not just that but there is much hope, we are the 9th wealthiest by GDP per capita or average income per person. To pay off our debt we could raise taxes or start exporting more of our resources.
Of course we will, we are America. The bald eagle will fly above our great nation and drop a 20 trillion dollar load on our country and we will be debt free forever. We will once again be the greatest country in the world. THIS IS AMERICA! WE WILL LIVE THE AMERICAN DREAM!
I do Like the plan to Raise Taxes in order towards Paying Off the U.S. National Debt I Am THAT GENEROUS to Use my Excess Income towards Paying Off The U.S. National Debt in Fact I Would Love to See America Debt Free I Say That Should Be The New American Dream "AMERICA The DEBT FREE Nation"
First we must balance the budget to keep the debt from growing. Our federal government collects about 1.2 trillion in revenue and spends about two. More than 80 percent or 1.6 trillion goes to social security Medicare Medicad and the military. If we spend what other nations spend on our military in terms of gdp percentage than we should cut the military by 60 percent, however we would still have the most expensive military in the world still. Then socail security. Many oppose cutting this so An increase in the social security tac to about 20 percent would balance this out. We would also need to cut federal wages by 20 percent effect immediately to avoid lay offs and put on a 20 year wage freeze.
So at this point we are keeping the debt from growing but how do wr shrink it? We pay interest plus principal just like a mortage. A 7 percent federal sales tac would generate enough revenue to pay it off in 20 years.
Although this might work in theory it requires that we either raise taxes or cut jobs and or salaries which would stiffle the economy shrinking our tax base. Ans if that happen as we are back to square one with a hige debt and a contracted economy.
America has the means to pull itself out of debt but it will require we the people to force are royalty and arrogant political cast to either get the job done or get the heck out. We went from being a producing nation to a consuming nation but with the Shale revolution we started making a positive change. WE need to actively pursue using our own natural resources and selling what oil we can to help pay down our debt.
We need to utilize a flat tax and remove the giant known as the IRS as it is a useless system that costs big money to keep going. Will this mean gov workers laid off. Probably not, their skills are useful in other departments.
We need to stop back door deals and scope creeps the politician's use to get bills, that have nothing to do with the one in question, to pass in their back door way. Its sickening how far we have fallen because we as American's allow our apathy and self-entitlement to rule our daily lives and allow these self serving jerks to tear down our foundations while lining their pockets.
We also need to cut what senators and other politico's make yearly and force them to earn their keep on a more structure system that forces them to actively pursue Countinous Improvement in the country, state or what have you that they oversee.
Its time to fix this broken system. And it starts with the People.
The one way out of this mess is responsability. The united states government will go after any person with the i.R.S. To make sure they do not make more than anyone supose to make. Same thing will happen with the U.S. china and japan they bought our debt for a reason. Taking action and responsabilty is freezing our politicians wage. This will help them spend less and make an example for the rest of us in the united states. Lets not take this offensively and more as a smart choice.
The US has the largest economy in the world, and also controls the dollar. If the rich pay more tax or large companies stop accumulating so much wealth, than others will have more money. Also, debt is never gone after Nixon who made it impossible for anyone to be rid of debt.
Most of the debt holders are US investors and US companies. Also, shale gas could be the latest game changer. US can expect more jobs with shale gas, rely less on foreign oil imports and hopefully exporting excess shale gas and thus making profit. Shale gas has changed the country a lot since its discovery.
The US will be able to overcome its debt. Eventually there will be another war, and the US will have to create jobs to build the weapons needed to fight, and bolstering up our industry, improving the economy, and eventually making us strong enough and with a strong enough dollar to pay it all off. But it will take a while.
The United States of America is overly wealthy in the sense that the country is not, but the companies inside are.
Our Military Services will pay greed of the United States Government and its controllers, but not the debt and certainly not by widely accepted economic and fair means.
Anyone who believes the US will, is an optimist of massive proportions. Unless the gov't takes power away from the overly huge too "big to fail" companies, then those optimists are dreamers.
To pay down the debt, there must be a little bit extra each year (i.E., a surplus) that can reduce principal. Simply speaking, until surpluses are created, we will be unable to meaningfully cut down on the debt amount. Inflation is helpful, in that, inflated dollars make the real cost of debt "cheaper"; that is, we are paying off old, more valuable dollars with newer, less valuable dollars. Problem is that too much inflation causes other problems. Best remedy is growth in the economy and some (modest) inflation. And, of course, cutting expenditures would help since we would have more surplus.
Interest rates are at one of the lowest points in US history. The ten year treasury bill, also refered to as the prime rate (basis for almost all interest rates) is currently at 2.3%. Assuming this to be the WAC of our $18T debt, you're looking at about $412B/ year in interest. That's almost 11% of last year's $3.7T federal budget. So just to keep the debt where it is we would have to balance the budget while allocating more than 10% to something that we're not even trying to pay right now, we are borrowing money to pay the interest and most bonds that get cashed out. To make this issue even worse, rates can really only go up from here. A more realistic and stable prime rate (to entice people to save money or invest in something other than equities) would be about 4%. In all likelihood our debt will be even higher before rates get to that level but for simplicity we'll stick with our current amount, which at 4% would accrue $720B a year in interest, which is closer to 20% of last year's federal budget. You would have to sieze and liquedate the value of every billionaire in the world just to make one year's payment, but then face the same amount next year, and who could they go after then?
The govenor of Puerto Rico with 16000 dollars debt per head called their debt mathematically impossible to pay off. Greece has around 30000 euros of debt per head is un such a shocking state it's utterly ridiculous to expect them to pay it's debt without a massive haircut which so for is not forthcoming and thus it rumbles on, they should simply default. The US has around 55000 dollars of debt per head. Either the US will default or print a shed load of dollars to get out of its debt it can't be much longer before holders of US treasuries figure this out, I think by Christmas 2015 the game us up and the dollar will be dumped.
Its the old way of doing things. You owe me a hundred bucks. Don't have it? That is okay. I guess I will take your bike then. We don't need to reinvent the wheel here, its a simple matter of not upsetting people who you owe money to because it will likely come down to you paying them back or they will take it from you.
Why pay it, and who would you pay it to, the government, they wouldn't use it to pay the debt, they would spend it, why don't they put 500 billion in an investment and let it compound and eventually there would be mountains of money, they could print a billion dollar bill and make 20 thousand of them and pay ourselves
If you study economics you'll learn that some debt is actually important in the economy. The debt might just be helping the US and China, because this way America gets to constantly pay those countries and receive benefits. For example, America can get away with doing certain stuff that might be considered clandestine in certain countries because they pay them is what seems to be a legitimate bribe called "debt".
The elite that wish to destroy what remains of the middle last in both the usa and other developed nations have no interest in paying off the national debt... They are the ones that profit from the so called (manufactured) financial crisis ..They are the ones that own the weapon producing companies and therefore ensure the world is at war continually...They are the owners of the banks, insurance companies, energy companies and worldwide press....You only ever get to know what they want you to know...98% of the american public is kept "dumb" by sport and cheap fast food....Face facts...They have already won and there is nothing we can do about it.. Try living without a bank account... Impossible right? Got it yet? Facebook-google-aol-yahoo-msn-skype- all the same thing...THEY know who you are...Where you are and what you are doing...You go against the grain..And watchout...Your grandchildren will have chips implanted in them at birth.... If they go against the grain...Their chip will be turned off... Sound like the matrix ? Get ready . Be afraid.. Be really afraid.
The U.S. Debt has been climbing at an alarming rate in the past few years, and it is my opinion that we as a country will never fully pay off our debt. We may come to some "settlement" of debt, but I don't believe that America as a whole has the mindset and willpower to make the changes necessary to truly bring our debt down. We have decided as a society that we want to live with certain priviledges and comfort that make it impossible to do without the massive amounts of spending that keeps us happy. We are not a thrifty country, and it would take a miracle to change our ways now.