+ Reply to Thread
Results 1 to 5 of 5

  1. #1
    Join Date
    Feb 2006
    Location
    Portland
    Posts
    359

    The Federal Budget, National Debt, Federal Deficit explained

    What's the difference between the national debt and the federal deficit?
    The federal deficit
    is the difference between what the government takes in from taxes and other sources and what it spends annually.

    Imagine you made $40,000 in a year, but had $50,000 in expenses. You would have a $10,000 deficit. You would need to borrow $10,000 to make up the difference.

    For many years, that's exactly what happened. The government took in less than it spent and had to borrow the difference. This was called "deficit spending."

    The national debt
    can be thought of as the accumulated debt the government owes from all those years of borrowing money to pay off the annual deficits. It is the total off all money owed to individuals, corporations, state or local governments, foreign governments, and other entities outside of the United States Government. The national debt is also often called the public debt, because most of the money is owed to the public.

    Where does the government borrow money?
    Most of the money the government borrows comes from -- us -- the general public. The public loans money to the government by purchasing U.S. Treasury securities like T-bills, notes, bonds and savings bonds as investments.

    Where the "surplus" came from
    When the government has not practicing deficit spending, that is, when the government has been taking in more from taxes than it has been spending, the result is that the government has money left over -- a budget surplus.
    ---------
    Currently the national debt is at $8.2 Trillion You can find this info here http://www.federalbudget.com/


    Some interesting tidbits are as follows;
    • In Fiscal Year 2005, the U. S. Government spent $352 Billion of your money on interest payments Just to clarify... that was on interest alone. Remember, interest is the fee you have for the money you borrow. None of that went to the principle.
    • Compare that to NASA at $15 Billion
    • Education at $61 Billion
    • Department of Transportation at $56 Billion
    • For the current FY06, we've already spent $174 billion on interest payments
    • US Military Budget for 2005 was $420.7 billion
    • Remember Education was $61 Billion
    • US Military Budget for 2004 was $399.1 billion
    • The U.S. military budget request by the Bush Administration for Fiscal Year 2007 is $462.7 billion. (This includes the Defense Department budget, funding for the Department of Energy (which includes nuclear weapons) and “other” which the source does not define. It does not include other items such as money for the Afghan and Iraq wars—$50 billion for Fiscal Year 2007 and an extra $70 billion for FY 2006, on top of the $50 billion approved by Congress.) http://www.globalissues.org/Geopolit...litarySpending
    • Social Security is not part of the Federal Budget general fund. It is a separate account and has its own source of income. Social Security payments do not go into the general fund, they go in the Social Security trust fund, and should NOT be counted as general revenue. The trust fund is supposed to be used to pay future benefits. But....keep reading....

      Currently, there is more coming into Social Security than is being paid out to beneficiaries. What's left over is routinely being spent as if it were general budget revenue. Government agencies using that money promise to pay it back (IOUs). All of the money in the Social Security Trust Fund has been spent! That's part of the National Debt. So Social Security is just a very large tax collection tool.

    ----------------

    So what am I getting at?

    Regardless if you're conservative or non-neocon, these numbers speak volumes about the priorities of this nation's leaders.

    Batarang Force

  2. #2
    Join Date
    Feb 2006
    Posts
    105

    Re: The Federal Budget, National Debt, Federal Deficit explained

    Quote Originally Posted by BatarngForce
    [size=3][b]
    Regardless if you're conservative or non-neocon, these numbers speak volumes about the priorities of this nation's leaders.

    Batarang Force
    All of the political talk of impending Social Security doom are very real. It has been a problem both sides have quibbled over for many years. Sadly, Batman is very correct when he says politicians have used YOUR funds to continue their irresponsible spending habits. One of Bush's ideas I actually agree with is the privatization of those funds so that it takes them away from the greedy hands of our elected leaders.

  3. #3
    Join Date
    Sep 2005
    Posts
    586

    Re: The Federal Budget, National Debt, Federal Deficit explained

    Hi Batarang,

    This thread is what I meant when I wrote in the "What do we do now" thread. Illustrating clearly and concisely what events, t.erms, and actions mean. It is important to give the average American citizen the information and tools to make informed decisions.

    I would like permission to cut and paste this post on every Democratic, Republican, political, and social message board, I can think of.

    DeeDee1965

  4. #4
    Join Date
    Sep 2004
    Posts
    27,212

    Re: The Federal Budget, National Debt, Federal Deficit explained

    Quote Originally Posted by Whiplash
    All of the political talk of impending Social Security doom are very real. It has been a problem both sides have quibbled over for many years. Sadly, Batman is very correct when he says politicians have used YOUR funds to continue their irresponsible spending habits. One of Bush's ideas I actually agree with is the privatization of those funds so that it takes them away from the greedy hands of our elected leaders.
    that all SEEMS fine and dandy until you look closer.the term you used is "SOCIAL SECURITY"!?now who is it designed to SERVE!?i mean if all men/women are successful and prosperous........then......who needs it!?for if money is the "KEY" to a "FEELING" of social security/acceptance/participation then privatization just decides who is "FIT" to recieve it!?do i smell FASCISM!?sniff-sniff!?i mean after all.......you dont want a sure return on your "car insurance do you"!?WELL!?.........I DO D A M M I T!!WHY!?...cause i am "SPECIAL"!!........just ask anyone here!?hehe!!

  5. #5
    umdkook Guest

    Re: The Federal Budget, National Debt, Federal Deficit explained

    hmm, well interestingly enough, as I was searching for info on Israel's defense budget, I came across info that said teh US defense budget represents about 4% of total budget, which is on par with industrial nations worldwide. I was surprised to read that, as we all know defense spending is unreal in the US, but that may just be becuase the budget is unreal as well...

    im just posting one fact i read tonight, feel free to correct me or quantify my statistic.

Similar Threads

  1. F### that Federal Judge!
    By danrush1966 in forum Political Scams
    Replies: 6
    Last Post: 10-19-2010, 10:34 AM
  2. Where 50% of the Federal Budget goes.
    By Worried_in_the_USA in forum Political Scams
    Replies: 11
    Last Post: 11-03-2009, 09:39 PM
  3. Why California Leads the Nation in Deficit, Debt a
    By brucefan in forum Political Scams
    Replies: 21
    Last Post: 06-26-2009, 06:44 AM
  4. The federal reserve.
    By howdy in forum Political Scams
    Replies: 19
    Last Post: 05-30-2008, 09:33 PM
  5. An excellent visual to show Federal Budget
    By BatarngForce in forum Political Scams
    Replies: 2
    Last Post: 03-17-2006, 07:44 AM

Tags for this Thread

Bookmarks

Bookmarks

Posting Permissions

  • You may post new threads
  • You may post replies
  • You may not post attachments
  • You may edit your posts
  •