What is happening to the federal debt?
Some of the figures below are truly shocking. According to the Institute for Truth in Accounting:
Since May 30, 2008, less than six months ago, the United States has added a stunning $1.2 trillion dollars to its already bloated public debt. Total debt now stands at $10.6 trillion while that portion held by the public and foreigners is up 20.6% in less than half a year.
“Since the time George Washington was president until Bill Clinton assumed the office, we had managed to accumulate $4.2 trillion in debt. President Clinton added $1.6 trillion and George Bush has increased the total by another $4.8 trillion” said Sheila Weinberg Founder of the independent Institute for Truth in Accounting.
“Beginning in the middle of the year, the federal government’s existing annual deficit has been increased by bank bail outs, insurance company rescues and by coming to the aid to automobile manufacturers and their unions.” Weinberg continued. “For the sixty million households that pay taxes, these government programs add more than $20,000 in future liabilities.”
Weinberg reminds us that the public debt is only a small part of the fiscal challenges that face Americans. “The real problems are the promises we have made to ourselves without a way to pay for them. These unfunded obligations are a consequence of Social Security and Medicare entitlements, primarily and they are nearly five times larger that the “official” debt. The total combination of debt and promises is a whopping $57 trillion or more than $188,000 for every man, woman and child. For taxpaying households, this is an obligation of nearly $900,000!”
For more information about the Institute please visit: www.truthinaccounting.org and www.truthin2008.org