Nine months into Great Depression-2, U.S. federal debt is $11.3 Trillion ($37,000 per capita). The government also has $62.9 Trillion in unfunded liabilities. Part of that amount is for Social Security, a legacy of the New Deal.
Tax receipts are plummeting. In the first six months of fiscal year 2009, which began in October 2008, income tax receipts fell 31 percent and corporate tax receipts, 64 percent. The budget deficit this April was $20.9 Billion, the first deficit in this tax-paying month in 26 years. April 2009 tax receipts dropped 44 percent compared with those in April 2008. Money collected by taxes is only going to cover half of the fiscal 2009 federal budget, requiring the government to borrow and print more than $1.8 Trillion to fund it. Equal-sized deficits loom for fiscal year 2010 onward. Tax receipts fell 50 percent in GD-1. Now eight months old, GD-2 is already rivaling that drop.
The government has a problem. Thinking it can save the economy by spending more money, it is faced with hign unemployment, frugal citizens with less income and near empty malls. That means fewer incomes and corporate profits to confiscate for their lavish programs. Dr. Donald W. Miller has the details.
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