Why is the National Debt a Problem?
- The interest paid per year increases and could eventually be more than all other spending. It drains our wealth and sends a large percentage of it overseas. Eventually you are only able to pay the interest and nothing else. This means bankruptcy.
- Interest on the debt (as of 2010) was larger than all but a handful of programs, over $400 Billion. Just think of what you could do with your share of that money.
- We will no longer control our own destiny. The owners of the debt will.
- The interest alone has been bigger than what is spent on Medicare.
- Lower growth. Fewer Jobs. Lower salaries. It hurts everyone now, and future generations much more through lower growth compounded over decades.
- Compounding. Debt compounded becomes extremely large, very quickly.
- It weakens the dollar when it becomes excessive.
- [New for 2010] If interest rates rise in general, they will increase the United States' interest payments dramatically.
- On January 20, 2001, the debt was $5.7 trillion. Eight years later, January 2009, it was $10.6 trillion, an increase of $4.9 trillion, or 86 percent. In July 2010 the national debt stood $13.2 trillion, an increase of $2.6 trillion or 25 percent - in 18 months since January 2009. In May 2011, the debt stood at $14.3 Trillion, a $3.7 trillion increase in 28 months.