By Charles Kolker
We’ve been discussing the national debt on this page. Following is an excerpt from a news article today that holds some interesting information:
“About two-thirds of the debt is held by the public in the form of Treasury bills, notes and bonds. The rest consists mainly of special-issue government securities held by trust funds for Social Security, Medicare and other programs. ” New York Times
So, at least 2/3 of the national debt is owed to us, much of which will be repaid over many years in the future. As the economy improves, taxes will increasingly flow into the treasury to pay these obligations. This is what history show us.
First, though, we have to stimulate the economy so it will grow faster. Cutting spending by the government is extremely short-sighted, as it will suck money out of the economy and retard its growth. Take a look at today’s news in the Wall St. Journal about England: it’s slashing its spending and its economy is taking a nose-dive. Duh… of course that would happen. And our Republican friends would repeat this same senseless move that torpedoed the economy to create the Great Depression—thanks to another Republican, Herbert Hoover.