According to the U.S. Treasury, in the fiscal year that ended Sept. 30, the U.S. government spent an estimated $3.796 trillion and collected an estimated $2.469 trillion in revenue, creating a deficit of $1.327 trillion (35 percent of its expenses). If the recession is over, why do deficits persist? The gross public debt has reached $16.351 trillion (about 105 percent of gross domestic product). About 33 percent of this debt is held by foreign countries. Our top four creditors are China, Japan, oil exporters, and Brazil.
Things are worse at the state level because states cannot print money to finance their deficits; they can only borrow. The higher their debt, the worse their credit rating and the higher the interest they have to pay. All states except Alaska, Arkansas, Montana, North Dakota, West Virginia and Wyoming carry deficits. California is number one with a deficit of $26.4 billion. New York is number four with a deficit of $10 billion. Many households and businesses are also highly indebted.
Unemployment is stuck at a national average higher than 8 percent primarily because Rosie the Riveter has been replaced by Rosie the Robot, companies find cheaper labor overseas, and only 28 percent of Americans have college degrees. Also, Americans are getting sicker at younger ages, so they cannot work, even if they can be employed. This is a national emergency. Unless we change our ways, we will be speaking Chinese in a few years.
Choose freedom, independence and prosperity in November.