Neither Major Party Plans to Pay Down National Debt

The prospects for reducing federal debt aren’t good. Neither major party has a rational plan, nor does the Tea Hee party.

Bunkonomics have become the political norm; wealth is perennially concentrated, the wage negotiating position of the working class decline. Lenders to the federal government buying notes have support in cutting social spending from the budget as if the poor were at fault for creating the debt. All of the federal discretionary spending together is less than a third of the budget. That is not the best place to look for place to pay off the public debt. The poor become victims without a federal health service as well. Their job prospects are poor while the advantaged outsource work abroad whenever possible.

The Wal-Marts of the world buy cheapest goods produced abroad and import tem to the U.S.A. for sale at highest possible prices consumers will bear once they have acquired oligopoly status in America driving just local competitors from the market. Internetworked corporations may preclude finding reemployment if fired after making political dissent in public forums from corporate oligopoly interests.

The federal budget is about 3.5 trillion bucks annually. The public debt by 2015 will be equal to five years federal budget. Just balancing the federal budget will not reduce the public debt.

In 2015 interest on public debt will be about a trillion bucks annually. The U.S. gross domestic product is about 30 trillion? Annually. Minus interest on he federal debt, the U.S. Government budget in 2015 would be about 2.8 trillion annually-that’s not too large with the U.S. gross domestic product being about 14.6 trillion dollars annually. http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

The greatest portion of the federal budget that can be reduced without harm is the interest on public debt-raise taxes, hold the line on spending and pay off the debt as soon as possible. Whet e debt is gone taxes may be cut to balance the budget fro the surplus of revenue.

Logically one cannot pay off the federal debt without running a budget surplus unless fundamentally getting rid of most government services instead of paying interest an principal down.

Since the 81 Reagan tax cuts the U.S. Federal debt has always increased, and that shall always remain so with present low tax rates and increase in population and economic scale.

http://useconomy.about.com/od/grossdomesticproduct/p/GDP.htm

http://www.usgovernmentspending.com/us_20th_century_chart.html

http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm