By RAY ADLER
Ask Adler
The National Debt is now more than $31 trillion.
There’s approximately 260 million people over the age of 18 in the United States. This means the national debt is more than $115,000 for each adult in this nation.
The Democratic spending seems increasingly unconnected from fiscal reality. Under the Democrats, even accounting for inflation, the national debt jumped by almost $5 trillion in two years. U.S. Growth & Economic Analysis estimates more than $89,000 in debt for each individual man, woman, child. Yes, each. Those unemployed, those with significant illnesses, those with disabilities, those in nursing homes, babies and children, and those unable to work.
Our government holdings are one of the two types of debt. Public debt is the other. In our governmental holdings, debt is held by governmental agencies. The largest share of our governmental debt is held by the Social Security Trust Fund at 46 percent of the $6.5 trillion in the governmental holdings section.
Public debt is held by U.S. debt holders and foreign debt holders. Japan holds $1.3 trillion; China holds $1.07 trillion; the United Kingdom holds $647 billion. The U.S. Federal Reserve has greatly increased its holding of debt by buying debt with newly created reserves. That increases the rate of inflation: more dollars chasing the same volume of goods and services.
Other financial obligations in forms other than bonds also exist. This includes pension and retiree healthcare costs for veterans, civilian federal employees and the general public through Social Security and Medicare benefit commitments. Unfunded entitlements like Social Security and Medicare account for 59 percent of the federal liability. When these are included, overall federal debt obligations now surpass $300,000 for each American.
That does not count the debt obligations of state and local governments across the country. Those obligations have been estimated at more than $7 billion by the Reason Foundation. This tremendous debt can be reined in by periods of inflation and several decades of exceptional economic growth but current economic forecasts project anemic growth of the American economy.
Papa said, “It’s not how much money you make but how much you can hang on to.” In that category, me and the Democrats are clearly at odds.
Educational material and not legal advice, written by the team at Adler attorneys. Email andrea@noblesvilleattorney.com with questions or comments.