Why the Budget is the Wrong Thing to Fight About

Ian Fletcher

Activist Post

The country is consumed right now with the fight over the Federal budget, specifically the plan of Rep. Ryan (R-WI) to balance it by (mostly) radically cutting spending on medical programs, especially Medicare.  The recent Republican loss in New York’s 26th district’s special election—which had more to do with my friend Jack Davis running on a third-party ticket—has been interpreted as a referendum against the Ryan plan.  And the states are, of course, tied up in budget battles of their own, most visibly the aggressive push to cut the cost of public employees by curtailing their unions.

Unfortunately, while all these fights are, of course, important, they are still, fundamentally, the wrong economic issue for America to be fighting over right now. Because despite Rep. Ryan titling his plan “The Path to Prosperity,” none of these controversies touch upon the true fundamentals that determine that prosperity.

All these controversies are, at bottom, about one thing: rebalancing public-sector spending.  And it is fantasy to imagine that this is the key to putting our economy back on track.

Ron Paul EXPOSES the Real GDP and Unemployment Numbers

Related Article:
10 Ways You're Being Fleeced by Banks

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Living Beyond Our Means: 3 Charts That Prove That We Are In The Biggest Debt Bubble In The History Of The World

The Economic Collapse Blog

Do you want to see something truly frightening?  Just check out the 3 charts posted further down in this article.  These charts prove that we are now in the biggest debt bubble in the history of the world.  As Americans have enjoyed an incredibly wonderful standard of living over the past three decades, most of them have believed that it was because we are the wealthiest, most prosperous nation on the planet with economic and financial systems that are second to none.  But that is not even close to accurate.  The reason why we have had an almost unbelievably high standard of living over the past three decades is because we have piled up the biggest mountains of debt in the history of the world.  Once upon a time the United States was the wealthiest country on the planet, but all of that prosperity was not good enough for us.  So we started borrowing and borrowing and borrowing and we have now been living beyond our means for so long that we consider it to be completely normal.

We have been robbing future generations blind for so long that it doesn't even seem to bother most people anymore.  We have become accustomed to living in debt.  We go into massive amounts of debt to get an education, we go into massive amounts of debt to buy a home, we go into massive amounts of debt to buy our cars, and we even pile up debt to buy holiday gifts and to purchase groceries.


Just check out the chart posted below.  It shows the total credit market debt owed in the United States.  In other words, it is a measure of what everyone owes (government, businesses and consumers).

30 years ago, total credit market debt owed was less than 5 trillion dollars.  Today, it is over 50 trillion dollars.  Total credit market debt is now at a level equivalent to about 360 percent of GDP.  This is what has been fueling the great era of "economic prosperity" that we have been experiencing....   

So what is the answer to this problem? 

Read Full Article and See Other Charts

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