Friends, If you try to convince your self that voting for either (D or R) is good for the US economy or your personal economy, then rest assure that you are mistaken and may be you do not know enough about economy and who runs it. In this paper, I will talk about one point that neither D nor R candidates talked about, which is the National Debt. Is it important to the American individual welfare? Who owns it? Can it be solved or reduced, And the most important question; is it or was it planned? And the conclusion or the purpose of this paper.
Let me start with the question; can the National Debt be planned? Well, we know that everything in Economy and Politics can be or is planned. During the Clinton administration the National Debt was $5.6 trillion. The administration reduced the debt by $500 billion(approximately), they accomplished that by taking many steps mainly reducing the defense budget and increased taxes on certain brackets. At that time we had a budget surplus, which was good not only for the American people but also for the US economy as a whole. I doubt that was liked by all Americans, so he left office with a Bang. In my opinion that was the end of the real Democratic party era. After the Clinton Administration, the Democrats and Republicans took office almost equally. As I am writing this post the US National Debt according to the US National Debt Clock surpassed $35.8 trillion.
Friends, When we talk about a debt, national or personal, we have to talk about two things, first the interest on the debt, second; the credit rating which determines the interest rate for the said debt. According to the Congressional Budget Office (CBO) on August 6th, 2024 stated “ CBO projects that the interest payment will total $892 billion in the fiscal year 2024 and rise rapidly throughout the next decade- climbing from $1 trillion in 2025 to $1.7 trillion in 2034, in total, net interest payments will total $12.9 trillion over the next decade”. I urge you to re-read the statement and comprehend the point that the American people and its economy has to pay $12.9 trillion over the next ten years as an interest on the $35.8 trillion debt.( the US GDP is $29.3 trillion). On August 1st, 2023 Fitch Ratings downgraded the US credit rating from AAA to AA+. This means interest rate increases. Take a moment and think about that, and ask yourself; what will be the interest payments if the rating downgraded to AA or A+ or even lower?sure it is unlikely, but can anyone guarantees that? According to Statista Research Department on August 21, 2024 “the annual inflation rate in the US has increased from 3.2% in 2011 to 8.3% in 2022” Which means the purchasing power of the US Dollar has weekend in recent years.
Friends, before I talk about the last point,who owns the debt? I would like to bring your attention to one statistic, in the year 1990 there was 66 American billionaires, the number of American billionaires in 2024 is 801, few of them in technology sector, the rest in different sectors or industry such as pharma, banking, oil, insurance, health care, investments and more.
Friends, 80% of gross debts held by public,two-thirds of the public debt held by domestic holders, the Federal Reserve (US Banks) owns one third of the domestic public debt, then the rest owned by Mutual Funds, Pension Funds, Insurance companies and others.
Conclusion,
Friends, although the wealth was given on a silver plate to the few through miss management and “shady”economic plans by the last nine terms of presidency, I can say with the little knowledge I have that the American economy and its people can fix or overcome the debt and it’s interest and fees. Dr. Stein tweeted few week ago(in different words), neither the Republicans nor the Democrats have a real plans for the economy. She is right. She have a real workable, tested plan for the economy. If you look closely, we well see that her plan for the economy is almost the same as President Bill Clinton plan which not only paid a sizable portion of the debt principal but created a budget surplus. The Republicans and the Democrats promises you that they will cut taxes, give relief funds, help with housing…etc. but they failed to tell you where they are going to get the money ? some TV adds claim that they are going to tax the rich, make no mistake it’s only an election pitch. They will come true some with some of their campaign promises but they will add the cost to the National Debt and they will let it ride, then it will become harder and harder to fix. The crumbs you are getting you will end up paying multiples in the near future and generations to come.
Friends, I gave you some of the important bullet points with figures from a reputable source, you can take that at face value and/or do your search to be able to make the right choice.
The US forefathers trusted you on doing the right thing for the country and its people. They concluded that this country is by the people for the People. Not By the People For the few.
God bless the Constitution, the Bill of Rights and its people.
اللهم اني قد بلغت اللهم فاشهد
