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One of the subjects I keep having to explain to people is what is the national deficit and why is it important. It is understandable that to sustain a country, you must spend money. You must also earn revenues through taxation to compensate for the money spent on infrastructure, military and other federal projects. The problem is when there is a deficit in the spending and not a surplus. This can cause an overwhelming effect on the economy and for future generations.

To put it into simple terms, check out this 30 minute movie called I.O.U.S.A, which was published in November of 2008:

The CBO recently posted this chart regarding the future outlook of the budget deficit (using the presidential analysis method, which basically takes into account the president’s proposals, and determines the budget henceforth). It clearly indicates the MASSIVE spending that congress has done in reference to the stimulus package, bailouts and TARP. Additionally, it outlines the longer-term effects of these programs which will without-a-doubt cause trouble for future budgets.

A lot has changed since 2008 when I.O.U.S.A. was produced. And unfortunately, when debt is talked about, it normally doesn’t include social security, medicare and other publicly held unfunded liabilities.

Around $60 trillion dollars; our “real” national debt… and it grows higher every day…

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