Quote:
Originally Posted by ken0042
Question that I've wondered. How much is the US spending on debt service compared to what their deficit is?
I'm just thinking that there has to be a point where the amount required to just pay the interest has got to be only compounding the issue.
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Your answers are here:
http://www.bloomberg.com/news/2011-0...to-record.html
Part of the issue with most governments right now, including the USA, is tax revenues took a gigantic hit in the 2008-09 recession.
Its not all about spending. Revenues are important as well.
California, if I remember right, had an unexpected $8 billion pickup in tax revenue in the last few months as economic activity increased.
In one single year in roughly 2006 or 2007, the USA federal government increased tax revenues by more than the USA defence budget.
Revenues are an underrated factor in this.
Cowperson