July 24, 2011
How Would Obama's Economic Plan Really Work?
In simple terms, what is required to satiate the federal government's deficit spending habit and actually pay off the national debt? Consider this: Americans have a $14,000.00 credit card balance that has reached its limit. (This is our national debt.) We pay the minimum payment of $17.00 a month. At this rate, we will never pay down the principal. To pay down the principle, we need $50.00 per month every month on the $14,000.00 loan as long as the interest remains at 2%. At this rate, it will take 33 years to pay the debt. Any mortgage calculator will validate this payment. The real problem is a governmental spending addiction -- that is, deficit spending, or spending money we don't have. This addiction exceeds our budget for this year by about $1,200.00. Thus, we will need to borrow $100.00 per month. Actually, an additional $150.00 per month is required to pay our national credit card debt and fund the government's...(Read Full Article)