Who is nominated is very important. More and more it is looking like Hillary will be forced out of the race due to primarily to her lack of truthfulness about anything including Benghazi and her private emails with all that entails. More and more we are hearing statements from Biden that is thrusting Biden into the news.
Unless Obama and his regime manufacture a reason to postpone the elections in November, the probability increases that the Republican nominee will be elected and inaugurated.
One of the very grave problem the United States faces is our growing debt. Not only is this year’s deficit up by $100 billion, it marks the first time the deficit has grown, relative to the economy, since the Democrats had complete control of Washington. This year’s projected deficit is $544 billion, an increase of $105 billion over last year. As a share of the overall economy, the most meaningful measurement, the deficit has also increased, now equaling 2.9 percent of GDP. The total debt outstanding has also increased dramatically since last year. Total federal debt owed to the public is now equal to 76 percent of the economy. This is up a staggering two percentage points since last year. The total debt is just shy of $19 trillion dollars.
Economists have explained that for every $1 trillion dollars of increased debt, the potential growth of GNP is reduced by a full percent. Currently our growth is under 2 percent and we are told 4 percent growth would be fantastic. Without real economic growth that goes well beyond the growth of population, we will never be able to pay down the debt to a manageable amount. Remember, the interest we have been paying on the debt is at historical lows. At more normal interest rates of even 4 or 5 percent, the debt would be in excess of $20 trillion.
You must listen to the candidates very closely. Are these candidates advocating more government, change in government, or reduced government? Reduced government is the only solution to our debt. Increased taxes will only exasperate the problem. Increased taxes will drive down economic growth even more which results in a net decrease in revenue to the government. Reduced government expenditures and reduced taxes will and have increased economic activity and resulted in a net increase in revenue to the government. With increased revenue and decreased expenditures the debt can start to be serviced and the economic well-being of the country secured.
The future of the United States depends on your ability to discern which of the candidates truly understands not only this debt problem, but the others as well.