Much has been said about the “fiscal cliff” on Jan. 1; however, the Jan. 1 “fiscal cliff” will be a speed bump compared to the real fiscal cliff.
This is the fourth year in a row the federal government has had a $1 trillion plus deficit, all under the leadership of President Obama — up from the irresponsible 2008 Bush deficit of $487 billion. Never before has the federal deficit been even close to $1 trillion, let alone for four years in a row.
On Sept. 4, the national debt hit $16 trillion and even with Obama’s “tax the rich” solution, according to the Congressional Budget Office, the debt will rise by more than $7.7 trillion in the next 10 years.
We currently borrow 40 cents of every dollar we spend!
Federal spending has increased from $3.2 trillion in 2008 to $3.6 trillion in 2012 — a spending increase of almost 13 percent while revenue has gone down 9 percent.
What would happen if our families or businesses managed their finances like this? The spending, borrowing and debt cannot continue indefinitely.
We will hit the real fiscal cliff/wall, the only questions being: 1) When will we hit it? 2) How will you prepare for it?
Ken Campbell, Lincoln