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The United States is in really bad financial shape.
The government has taken in more federal income tax every year since 2009, yet they lose more and more money each year.
Time for a thread
The government has taken in more federal income tax every year since 2009, yet they lose more and more money each year.
Time for a thread
1/ The US government has more revenue coming in the door every year.
Since 2009, federal income tax revenue has almost doubled.
Since 2009, federal income tax revenue has almost doubled.
2/ Although the US government has made more revenue each year, they continue to lose money year after year.
The last time the government spent less than it made was in 2001.
For 20 years, the government has lost money. Insane.
The last time the government spent less than it made was in 2001.
For 20 years, the government has lost money. Insane.
3/ The deficit problem is not a cumulative problem though.
We are running a larger deficit every year. Even though the government makes more money, we still lose more money each year.
This is the definition of bad business. Larger losses only ends one way.
We are running a larger deficit every year. Even though the government makes more money, we still lose more money each year.
This is the definition of bad business. Larger losses only ends one way.
4/ The problem has become worse since 1971.
We came off the gold standard, gave politicians the ability to print money, and now they are addicted to monetary stimulus.
Just like a drug addict, we need a bigger hit in order to deal with the gyrations in markets.
We came off the gold standard, gave politicians the ability to print money, and now they are addicted to monetary stimulus.
Just like a drug addict, we need a bigger hit in order to deal with the gyrations in markets.
5/ Many people in the government or on Wall Street try to rationalize these issues.
They claim that the deficit doesn't matter. They say we can inflate the debt away.
None of this is true. Rich people just profit from it.
Savers get punished, investors get rewarded.
They claim that the deficit doesn't matter. They say we can inflate the debt away.
None of this is true. Rich people just profit from it.
Savers get punished, investors get rewarded.
6/ It doesn't matter if you're an individual, corporation, or a government - you have to spend less than you make.
You may be able to live in debt for a period of time, but the party won't last forever.
Getting out of debt is the only path to freedom.
The US is no different.
You may be able to live in debt for a period of time, but the party won't last forever.
Getting out of debt is the only path to freedom.
The US is no different.
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