The noise surrounding the government shut down has started to turn into a dull roar. Social media is blowing up over reported 'suffering' that is happening to the poor, veterans and government employees (who I might add have been promised pay post shut down). The reasons we've heard about the shut down varies from which side of the isle you hear it from, but two subjects seem to rise to the top, the ACA (ObamaCare) and the debt. In my opinion these two are inextricably linked because ObamaCare can have a HUGE effect on the debt.
Let's look at just how much ObamaCare will cost us. Currently there are about 49 million people on Medicare/Medicaid at a cost of about $1 Trillion per year. The expected (hopeful?) outcome for ObamaCare is to have the 44 Million Americans without insurance to be covered with some form of insurance. If you factor in businesses that are dropping insurance and dropping coverage on spouses and children that number will probably climb to about 50 Million (Obama's own estimate) people and another $1 Trillion per year. For fiscal year 2014 the projected budgetary deficit is expected to be $744 Billion. The expected budget for 2014 of $3.778 Trillion compared to an expected revenue of $3.034 Trillion. We're projected to have three quarters of a trillion dollars in debt BEFORE ObamaCare. Is it starting to become any clearer to anyone? If ObamaCare goes as the Democrats expect (but it's not looking good) it stands to add another $1 Trillion dollars on top of an already bloated deficit adding budget.
Now let's look at the current debt level of $16.7 Trillion and talk about paying all that back. That is currently what the government has BORROWED and has to pay back. Kinda like a car loan but really friggin' big. The problem with all that debt, is that we're not paying it down. So we're borrowing debt to pay debt. Anyone out there know anyone that paid credit card bills with credit cards and how did that work out for them? Currently about $500 Billion a year is just to 'service' the debt. That's a nice way of saying that we're paying the interest so that the banks keeping handing over the cash. We are not paying any of the principle just the interest. Two-thirds of the debt we incur this year will be used just to 'service' the debt. That's friggin' ridiculous on any level. To appease any liberals that read this: Do you realize the good that $500 Billion would do? To put that in perspective, thats more than SIX YEARS OF FOOD STAMP FUNDING AT CURRENT LEVELS. With absolutely nothing to show for it but more debt.
This doesn't even take into account our unfunded liabilities (potential or actual debts for which no current funding is available) of $126 to $150 Trillion depending on who you asked. These are programs and political promises made but not paid. There is currently $50 Trillion in currency in the WORLD. That's every dollar, franc, ruble, euro, yen, etc. Our government has made it a habit to promise the moon and kick the can down the road when it comes to the tab. When all this comes due WE ALL WILL SUFFER. Not just the poor, the veterans or government employees, all of us. We all shoulder a portion of the blame. The only thing that this administration has said that's true is how they feel about the debt. It doesn't matter to them.
So is the government shut down because of ObamaCare or the debt? YES.
That's my two cents, spend 'em or put 'em in the dish for the next person.
