At Her Founding, America Had Almost 1 Trillion Dollars of Debt

Jul 31 2011 Published by under Uncategorized

US founded on debt

The tea party and in fact many conservatives love to embrace the Constitution and the flag. Unfortunately they FAILED to embrace U.S history at the same time. Within the next couple of days the United States will become a dead beat nation because of the very small minority of ideological conservative tea party members. These individuals have embraced the constitution, not because they know what is in it, but because it is “politically expedient”. In the 14th Amendment section 4 it states,

Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

The United States of America was FOUNDED on debt. Yes, we had debt in the amount of 75,463,476.52 by January 1, 1791 according to the bureau of public debt.

Without debt, the country would have NEVER won independence and thus NEVER become the country we know today. When you adjust for inflation, 75.4 million dollars in 1800 is almost ONE TRILLION in 2010.

The United States had an almost ONE TRILLION dollars debt when this country was born. This debt was almost paid off by the mid 1800s, not because of austerity, but because of economic growth.

The founders of the United States did not like debt, but obviously understood that debt is a necessary evil. In times of war, we submitted to this evil, like in the Revolutionary War and the Civil War.

By the end of President Clinton’s term, the United States had a projected annual surplus and we were going to pay down our national debt. That all changed back in 2001 when the Republicans won the Presidency, US House of Representatives, split the US Senate. Instead of being fiscally responsible and using this surplus to do pay down the debt, the Republican House, and split Senate supported to ignore the debt and give a huge tax break instead.

The biggest names and critics of the debt and deficit that come to mind today, are Speaker John Boehner, Eric Cantor and Paul Ryan. These three are the biggest frauds when it comes to fiscal responsibility. They all voted to ignore the debt and use the surplus to partially finance tax breaks.

Republicans like to use the analogy of running the government like a business or your own home. So let’s look at this like an average American.

The average American has a personal debt of 100k. They come across some extra cash and now have a surplus at the end of the year. Instead of using this extra cash to pay down that 100k dollar personal debt, they spent it. This is exactly what Speaker Boehner, Eric Cantor and Paul Ryan did.

Now this 112th congress led by John Boehner and the tea party wants to implement a Constitutional amendment to mandate a balanced budget. If we had a balanced budget amendment during the Revolutionary War, we would have never won and we also would have never won the Civil War either.

Balanced budgets are good for the country, during robust economic times and times of peace, but in times of national emergency, like war, natural disaster, or economic recessions, this country needs to have the ability to borrow. Look at what Clinton did during peace time, we had a surplus that actually made Federal Reserve Chair, Alan Greenspan nervous. Why was he nervous?

How many of you, average Americans are in debt due to emergencies? If you have a child that just broke his arm playing football, but do not have cash on hand to pay the medical bill, do you NOT borrow money to get him better? Of course you do. Better yet, if you have a car that needs some major mechanical work. Do you take out a line of credit to fix it, if you don’t have cash on hand, yes of course.

Businesses regularly borrow money to pay employees, to increase factory size, etc. So all this talk from the Republicans about running the country like a house or business is complete nonsense.

If you had a personal balanced budget amendment for your home or business you would never be able to get out of the emergency situation you are in.

Even Mitt Romney, GOP Presidential hopeful made his MILLIONS borrowing money and buying distressed companies. Without the ability to borrow, he would be an average middle class guy, not a multi-millionaire.

This makes me wonder, if Senator John McCain won in 2008, would we even be in this situation? Of course not! It’s all political and the Republican Party is seeking to win the Presidency, rather than win the future and sink our Country into another recession.

The debate over the budget should NOT be done over the debt ceiling, it should be done during budget negotiations. The tea party Republicans have an ideological agenda and they aren’t going to waiver.

This debt and deficit is not about SPENDING, it was created by the “STARVE THE BEAST” mentality. Starve the beast, means cut off revenue to the federal government and kill the programs that help regular people.

How can people believe conservative pundits who have come right out and said, cut off the revenue in order to reduce the government and in the same breath tell us it’s a spending problem. THEY TOLD US they will cut the revenue, meaning this deficit is a revenue problem! Common Sense!

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