I have noticed a lot of people complaining that they are only getting $600 from the current round of government in covid relief. But, would they still feel that way if they took a moment to consider where the money is actually coming from.
Before you spend the time to read this article, find a 5-7 year old and ask them if they are ok with us taking a third to half of all of the money they will ever make in their lives and spending it on ourselves right now. If they ask why, tell them, simply, “because”. Their response will be an unfiltered reality to anyone who is kidding themselves that we aren’t doing just that.
The country has $26,945,391,194,615.15 in current debt and a $3.3 trillion dollar deficit which means that isn’t likely to go down this year. To break this down, BEFORE the 2020 economic disaster, debt per capita (the amount of debt that is each person’s share of the national debt) is $69,063.79. This means every person in the country, you, your newborn child or grandchild, owes this much money TODAY, and it goes up by the second. There is no alternate reality where the vast majority of citizens can be expected to pay that. Additionally, the United States spends a lot of money that it doesn’t collect. In fiscal 2021, the government budget per capita is $24,917, while tax collection was $22,916 which is a current account deficit of $2001 per person.
So where does the extra money come from? We borrow it based on future generations’ ability to pay the interest and principal. People who are not even born yet are already obligated to pay for this money.
To make matters worse, it is estimated that the Social Security Administration will begin tapping into its fund in 2022 and will be insolvent in 2035, forcing either drastic reductions in promised financial benefits to people who have funded it their entire working lives, or a sharp increase in taxes to fund it, or worse, both. In other words, Grandma’s Social Security check that she needs to survive will be cut, and your taxes will go up.
By 2038, total spending will be 26% of GDP and total debt service will be 14%. when the Baby boom came of age in 1969 debt to GDP was 35.47%. It is currently 135.64% with no end in sight. It exploded under the Obama administration from 64% to 104% and remained there until the covid crisis hobbled the economy, and given the law of compounding will hamper the future generations of Americans.
None of this takes into consideration the tremendous amount of debt and pension responsibility that many states have assumed, or the incredible grift higher education is engaged in (a subject for another time).
In summary, no, we could not, and cannot, afford to shut the economy down due to COVID-19. No we could not, and cannot afford to give most Americans $1200 in direct payments, and no, we cannot afford the $600 payments either. When you get them, look at your children and ask yourself if it was worth it.
Let us know your thoughts below in the comments section, and get more details on the pork-filled Covid Relief bill here