Originally Posted by drgonzo
Just think of America as the largest and most valuable house in the world. As of right now our mortgage on it is slightly larger than a single year of income. So about a $32k house for a person on a $30k salary.
And the crux of my point is we aren't making money to pay that back. Spending as % of GDP is increasing faster than internal revenue as % of GDP.
So we are spending more, and bring in a relatively flat amount (as in the 2 graphs above).
It would be like saying yeah we are making the $30k and theoretically that should be enough to pay back our loans, but we are spending all $30k and then some on things like Obamacare, medicare, social security. Oh and next year we will get a 5% raise, but we are going to spend 10% more.
What to cut and how to cut is a different discussion. The main point I am trying to make is that we need to figure out a plan to do so, and it seems like many politicians and bright individuals agree with me that our current model is not sustainable long term.