Bill Archer Former Chairman of the House Ways and Means committee was being interviewed on Lou Dobbs show. He stated that actual debt and other obligations of the USA (i.e. the off cash books things like pensions) runs out to $86 Trillion. So about $70 T beyond the cash debt.
That got me wondering: Could an interesting “per capita” statistic be formed?
U.S. Populations per the PoP Clock is about 315 Million.
$86,000,000 (In Millions) / 315 ( In Millions) people = $273,015 per person.
So my ‘family of four’ would run out at $1,092,063.49 …. which is more than my net worth… Now, as I’m above average net worth, I think “That’s a problem”. http://www.moneyrelationship.com/retirement/the-average-net-worth-of-americans-where-do-you-stand/ shows that NO age group has a net worth over $273,000.
This means, quite simply, that you can sell every bit of net worth of ALL the population of the country and STILL not ‘balance the books’.
Now I suspect this does not include the wealth held by corporations and NGOs and non-profit organizations. But as they can largely just pack up and leave if taxed too much, there will not be a lot of extra money coming from them. Besides, if you DO start having all those assets sold to pay taxes, that drives down the market price… so as more land and buildings become ‘unproductive’ the wealth is gone anyway (see Detroit for an example of loss of value in land and buildings and ‘productive capacity’ under excess taxation and regulation.)
In short, IFF you did confiscate the corporate assets to sell them to raise the shortfall, you end up getting less revenue, not more, as the productive capacity leaves, the asset values plunge, and the employees become the unemployed. Part of the means by which the Laffer Curve bites.
So looks to me like it really doesn’t make a whole lot of difference WHAT congress does, they can’t pay the bills. Take everything and sell it, you still can’t pay the bills. Forget income, have a 100% tax on Net Worth of the nation. We’re still unable to pay all the bills.
So “Hey Congress!”: You WILL be cutting the budget. The only questions are ‘starting when’ and ‘from a high growth low tax economic growth’ economy of capitalism, or from a ‘stagnating and shrinking negative growth decay’ of central planning with over taxed under employed folks. In short, with reasonably happy folks, or with folks looking for someone to blame and (figuratively) “burn at the stake”.
How much do you want to piss off the average citizen when the end game comes? Near as I can tell, the options range from “Pissed enough to have a street rally” to “pitchforks and tar”… Cut the budget now, about 2/5 of the folks will be P.O’d. Cut the budget when you ‘hit the wall’, well, look at Greece. Riots and fire in the streets. Choice is yours, like it or not.