Here is a great article discussing how the increasing national debt will be paid off by everyone.
Let me breakdown how I see the situation with the national debt, taxes, bailouts and how it will result in.
The banks and major corporations around the world were involved in risky and questionable investments, and as a result lost a lot of money. Now they come to the government to bail them out to soak in the losses.
But wait, what were these bailouts used for? Definitely not for job creation or improving infrastructure; instead they paid themselves masses bonuses.
Now, the government has a bigger national debt which means larger interest payments. But, the rest of the population on the bottom, are losing jobs, reduced income and racking up more debt just to stay alive. Since the government now has less tax revenue coming in, they need to find new ways to squeeze out more money from the people.
So while we struggle financially, we are not faced with more taxes, fees, etc.
So the question I certainly want to ask is that, when will people open their eyes to the reality? Why are we paying for the mistakes of the greedy corporations and banks?
So looking ahead, how will our life look when we are faced with higher taxes? Are we ready to cut down on our consumption and debt? Are we going to be forced to choose between gas for the car to go to work and food to eat?
Are we going to downsize our life now or face the inevitable when it is too late?
Not sure if you are aware, but here in Australia the primeminister has suddenly decided not to give us our retirement pension at 65, and has extended it to 67. He wants us to go back to work! Sais there is not enough money in the coffers!
Thing is though, I just found out that the government has been charging a tax all these years to pay our pension. Now I would like to know where all that money has gone!?
This at first light may not seem to affect as many people as your debt in the states, but the government is saying that everyone will have to start paying more tax so we oldies can retire. I don’t think it is fair that we work all these years with the expectation of retirement at 65 or earlier, and then when the time comes Baby Boomers get told “sorry, but you have to keep working”!
For some solutions to this economic mess: http://www.moneyaswealth.blogspot.com
I fear it is too late for us to change the outcome of financial ruin. You cannot only blame "institutions" for our situation….we the people overspent. People bought homes they knew they couldn't really afford and they ran up their credit card debt. Over 40% do not pay income taxes, therefore they love all the government programs that give them things….it never affects their tax bill!