Budget Deficit Trillions Instead of Billions?
By Justin Gardner | Related entries in General Politics, Legislation, Money
It’s all funny money people. At least that’s how our leaders treat it.
Now we come to find out that if the same account practices that coporations use were applied to the government’s budget…oh boy..are you ready for a shock?
The federal government recorded a $1.3 trillion loss last year — far more than the official $248 billion deficit — when corporate-style accounting standards are used, a USA TODAY analysis shows.The loss reflects a continued deterioration in the finances of Social Security and government retirement programs for civil servants and military personnel. The loss — equal to $11,434 per household — is more than Americans paid in income taxes in 2006.
“We’re on an unsustainable path and doing a great disservice to future generations,” says Chris Chocola, a former Republican member of Congress from Indiana and corporate chief executive who is pushing for more accurate federal accounting.
Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later.
The federal government does not follow the rule, so promises for Social Security and Medicare don’t show up when the government reports its financial condition.
Here’s what that means to you…
Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.
Scary stuff.
This entry was posted on Friday, June 22nd, 2007 and is filed under General Politics, Legislation, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
June 23rd, 2007 at 6:33 pm
Hmm, nothing to do with anything other than welfare and social security?
How is about there being other impacts?
For example, the accumulated cost of the Iraq war?
Based upon initial estimates
Initial cost of invasion – $13B
Per month since 04/03 – 39 months @ $9B – $351B
Minimum interest per annum on accumulated debt – $20B for past twelve months at 5.5%
Who believes that the 2002 estimate is anywhere near correct? How much is it out by? 100%? 200%?
Let’s be charitable and assume that the 2002 estimate is short by only 100% for the past 12 months. Actual cost of Iraq for past twelve months would be $216B (12*9*2) or roughly 20% of the deficit of close to $1T…
June 25th, 2007 at 7:12 am
Executive Oil and Congress are gambling America’s future on the sweet crude of Iraq’s Al Anbar Province. The untapped crude beneath Anbar is the prize.
The cost of this “prize” in American blood is staggering in addition to the staggering trillion dollar debt.
Staggering drunks in denial at the helm……………….
Natural Selection, Corporate Treason and “Executive Oil”