Fuzzy Accounting
Thursday, November 2nd, 2017Joe Doakes from Como Park emails:
Do these numbers matter? If not, why bother keeping track of them?
Treasury Department says that for the month of September (one month only) Social Security and other payroll taxes took in $96 billion, but Social Security and Medicare cost $158 billion, about three times as much as we spent on the entire Defense budget. Are we buying so many beans that we can’t afford bullets?
For fiscal year 2017, we ended up being short $666 billion. That’s not the total amount of debt owed, nor the total amount of future spending promised, it’s the amount we overdrew the checkbook at the end of the fiscal year. We borrowed money to make the books balance. Our loan balance is now $20,000,000,000,000.00. It goes up a million dollars a minute.
Let’s be serious: it’s simply not mathematically possible to pay America’s debts in any reasonable amount of time while maintaining any reasonable level of taxation and therefore we can safely conclude they will never be paid. One of two things will happen: we’ll default and cause a world economic crisis; or we’ll convert to electronic money not backed by any tangible asset so the computers can continue to transfer electrons as if they were money and nobody will care that the entire thing is a polite fiction.
Maybe in the future we’ll run things as they did on Star Trek – money simply appears, just like your lunch shows up in the replicator machine or the red-shirted guy beams up from the planet. Magic.
Joe Doakes
Our federal government makes me feel like a redshirt all. The. Time.





