Letter: Paying national debt is crucial
Thursday, September 6, 2012
The $3.63 trillion 2011 federal budget is paid for by 63.75 percent revenue and 36.25 percent additional deficit financing. To have paid for this budget without loans would have required a 56.87 percent increase on all federal revenues.
The current administration has increased the federal debt more than 50 percent to $16 trillion. Currently, we only budget interest. To also repay the principal of the loan over 30 years would require an additional $533 billion per year, an additional 23.05 percent revenue increase. If Treasury notes move 4 percent toward their historical average, it will cost an additional $640 billion per year on our current debt and a weaker financial position.
Future budgets will incur additional costs due to population growth, inflation, and our nation's first credit rating downgrade last year.
Current budget practice is unsustainable. Our national debt is like a cancer that grows more rapidly to destroy our ability to create positive change.
Paying our national debt is critical. Long term, eliminating the national debt will increase government services, increase our nation's financial stability and credit rating, lower consumer credit rates, promote job creation, and increase our nation's national security.