Okay, "Pop Quiz" (Answers are at the bottom of the page)
1) What is the size of the US economy in terms of GDP?
2) What is the total US national debt?
3) What is the 2010 US Federal budget?
4) What is the US Federal deficit projection for 2010?
In a recent Seattle Times Op-Ed page Alex Albin makes the case that we don't teach American school kids basic economics along with math and history. I would add that American students are not taught basic political science, either. In a nation where the government is supposed to be built on the principle of government of, by and for the people it is strange that America doesn't do a better job of assuring that "the people" know how their government works and how to tell, in real terms, how effectively their government is representing them.
How well we educate the youth of America will determine how well the youth of America will fare in the realities of 21st century global competition. The fate of the nation always rests with the next generation of Americans. Such is the nature of governance of, for and by the people. I believe that the greatest security that our nation can achieve is for every American child to master the fields of math, science, history and philosophy. An educated population is the greatest defense against tyranny.
If we are going to have a serious discussion about the economic decisions facing America, we need to know what we are talking about. For instance:
What is the difference between the "federal debt" and the "federal budget deficit"?
What does GDP stand for and what is it?
What percent of the total US budget goes to "Foreign Aid"?
How much money does the federal government provide to fund National Public Radio (NPR)?
Just so you know, the total amount of all foreign aid from the US is just over 1% of the total federal budget, and NPR gets no direct federal funding. I have never had anyone answer either of those questions correctly.
Typical guesses on the amount of foreign aid range from 10%-25% of the budget. Eliminating all foreign aid would do absolutely nothing for the US economy and would devastate several countries that depend on US aid. Not exactly a good P.R. move on America's part if you ask me.
So it's going to have to be the "big 4", Medicare, Medicaid, Social Security and Defense. These 4 items account for over 80% of the US federal budget. We aren't going to truly address our national economic mess until we accept that these four "untouchables" of the federal budget are going to have to be part of the discussion. There can be no illusion that the American economy is in deep trouble. We cannot ignore the reality of our situation any longer.
However, it must also be clear that taxes are going to go up for some of the wealthiest Americans. The top 2%, those whose incomes exceed $150,000 per year, are going to have to give up their 4.6% tax break under "The Bush Tax Cuts". Too damn bad if you can't make ends meet if your taxes go up from 35% to 39.6%. All that means to me, who lives on way less than a tenth of that amount, is that you are living above your means and that is not a good reason to bankrupt America.
It is my belief that we, as Americans, need to recognize and understand that we are part of something greater than ourselves. I find it distressing that far too many Americans are happy to take the rights and privileges of American citizenship while ignoring the responsibilities that accompany those rights. We have an obligation to those that paved the way for us, and we have an obligation to future generations, to guard those rights and privileges. Liberty is priceless, but it is not painless.
1) $14.6 Trillion (2010 est.)
2) $13.6 Trillion
3) $6.4 Trillion
4) $1.4 Trillion
If you got the number to the left of the decimal correct, give yourself one point. The points are meaningless, but at least you won't be pointless. If you got even one right (without cheating) you are doing better than most.
