CHAPTER ONE The Origin of Money
Big, Big Debt! The problem is that most Americans do not truly understand how taxes and inflation will be such a burden on future generations. Our aging population continues to put pressure on today’s workforce, which must provide the tax dollars to support benefits already promised. Consider this: there are approximately 78 million Baby Boomers moving into retirement. Each year, this puts even greater strain on the younger workforce to fund Social Security, Medicare, and other government programs. At the time of this writing, the U.S. National Debt is over $27 trillion. In 2008, it was only $10.6 trillion. By 2033, it is projected to exceed $57 trillion. Meanwhile, our national deficit is already more than $3.9 trillion, and the total U.S. debt—including state and local obligations—is over $97 trillion. Ask yourself this question: Do you believe your taxes will be higher or lower in the future? The reality is clear: personal taxes will increase. Unfunded Promises When you include Social Security, Medicare (Parts A, B, and D), federal debt held by the public, and federal employee and veteran benefits, the government’s unfunded liabilities exceed $430 trillion. That is money already promised—but not yet funded. Consider this comparison: In 1959, the total National Debt was $285 billion, and the annual interest cost was $7.5 billion. By 2008, the annual interest alone had skyrocketed to $383 billion.
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