Debt Burden Threatens Families

By U.S. Rep. Ron Paul, M.D. (R-TX)

Last week, as most Americans were celebrating the holidays with family and friends, the Obama Administration announced plans to seek yet another debt ceiling increase in the New Year. While some fiscal conservatives will try to block this increase, their efforts are designed to fail thanks to the procedure set up by the last debt ceiling negotiations. Congress would have to pass a joint resolution opposing the increase, which the president could simply veto. Thus, an additional $1.2 trillion on top of our already unsustainable debt is a foregone conclusion. Our Gross Domestic Product continues to contract and now stands at $14.5 trillion. The debt already far exceeds that and will soon hit the new ceiling of $16.39 trillion.
Everyone in DC acknowledges that the debt is unsustainable, yet few are willing to take serious steps toward addressing it. Politicians in Washington cannot face the fact that the blank checks must stop. Many think we can ignore the mounting debts and deficits and eventually the economy will magically turn around and grow its way out of the mess. If you really understand why the economy is foundering, you understand the burden cannot all be put on the backs of the American people while politicians stick their heads in the sand.
According to a USA Today analysis, there are currently over $61.6 trillion in unfunded future government liabilities, which amounts to $528,000 per American household. A huge part of these liabilities are Medicare, Medicaid and Social Security – promises made to make the American people feel secure in their futures. But how secure should the American people feel knowing that a default is becoming more mathematically unavoidable with every NEW program added, every bailout, every debt ceiling increase, every new war we rush into, and every round of quantitative easing from the Federal Reserve? The last thing politicians should be doing is adding to that $528,000 household burden, with either more spending or more taxes. This is unequivocally a problem of too much spending by a government far outside its Constitutional bounds.
It is especially a slap in the face to the American family when the Federal Reserve dilutes the dollars we work for in order to bail out profligate banks and governments in Europe. The already perilous state of our economy and our currency should not be further endangered in a futile attempt to save the Euro. The least the government can do is allow Americans a choice in how to actually secure their financial futures that doesn’t depend on a sinking dollar and irresponsible government. My competing currency bill allows for that and I will continue to fight for economic freedom from foolish and selfish whims of the central bank.
It is nothing new for Washington to kick economic pain down the road. Optimistic politicians hope things will stay cobbled together just long enough to get through another election cycle, or that another administration will have to deal with the mess. The longer this cowardly attitude prevails, the bigger the problems become. Congress and the administration should exercise some good judgment, some political courage, and make the needed budgetary changes now. It would not be that difficult to do if Washington would simply work its way back to the Constitution instead of straying even further from it.

This entry was posted on Sunday, January 8th, 2012 and is filed under U.S. Rep. Ron Paul's "Texas Straight Talk". You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

6 Responses to “Debt Burden Threatens Families”

  1. Jerome on January 16th, 2012 at 12:44 pm

    Very good article. I couldn’t agree more

  2. Larry Flinchpaugh on February 16th, 2012 at 7:11 am

    Support Ron Paul In March Republican Caucus
    A vote for any candidate other than Ron Paul for president is a vote for the status quo. Nothing will change! New leader but the same old lies. Do you hear any of the other candidates talking about a balanced budget amendment or abolishing the Federal Reserve System? Both Mitt Romney and Newt Gingrich favor supporting Israel by continually giving them billions of dollars in aid and continue to support the hoax that Iran is America’s enemy.
    Those uniformed voters that say Ron Paul’s ideas scare the hell out of them have had their minds contaminated by the controlled main stream media. Their friends and relatives who feel the same way only reinforces their negative views. They both need to research the Ron Paul articles featured in the “Saint Joseph Telegraph” and various internet sources to learn the truth. You certainly will not know the truth watching FOX TV, MSNBC, CNN ABC, CBS, PBS, etc.
    I always ask people that don’t support Ron Paul. “Why?” Which part of his political platform do you not agree with?
    Is it that our government (1) should obey the US Constitution, (2) adopt sound monetary policies like abolishing the privately owned Federal Reserve that prints our money and charges us unnecessary interest, (3) stops being the policeman of the world, (4) should recognize the sovereignty of the states and individual liberty, (4) should have a balanced budget amendment so that government expenses are paid for by transparent taxes rather than by hidden debt financing that increases inflation.
    If number four were in effect, the chance of war would be almost zero. Can you imagine the president wanting to Nuke Iran and not being able to finance that war through debt financing? He would need to address the people on the evening TV news and say, “My fellow Americans. We are going to increase your income taxes by 40% to have enough money to pay for our war. I hope you folks don’t mind.”
    The mere fact that the media, bankers, military industrial complex companies, Israeli lobbyists and the Unions are frantically attempting to destroy the credibility of Ron Paul, should convince you that he is, indeed, the one to lead our country.
    Larry Flinchpaugh
    St. Joseph

  3. John Crabtree on February 21st, 2012 at 8:57 pm

    Wow that was unusual. I just wrote an very long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Regardless, just wanted to say great blog!

  4. Todd R. on February 25th, 2012 at 9:58 am

    I’m still confused. The Fed lowered interest rates and the credit card companies doubled and tripled the rates they charge us. What’s up with that?

    The banks and credit card companies are ruining us! I can barely afford food and gasoline now.

    The debt burden is suffocating me.

  5. Hardy, Teresa A. on March 1st, 2012 at 9:34 pm

    You made some decent points there.

  6. Despina Waffenschmidt on March 6th, 2012 at 5:25 pm

    Thanks for sharing your ideas on this blog. Also, a myth regarding the finance institutions intentions while talking about property foreclosure is that the bank will not getreceive my payments. There is a certain quantity of time in which the bank will need payments every now and then. If you are as well deep inside the hole, they will commonly desire that you pay the actual payment 100 %. However, i am not saying that they will not take any sort of payments at all. In case you and the lender can manage to work something out, the actual foreclosure practice may end. However, in the event you continue to pass up payments under the new strategy, the foreclosure process can just pick up from where it was left off.

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