Money problems in U.S.
Yesterday, Bush signed an emergency law that extends the federal budget for the year 2007 to avoid shutting the government down due to lack of funds. This will keep the federal agencies from closing.
At the same time we hear the same kind of news about the state of Michigan where workers were ordered to stay home on Monday to avoid further debt and until a solution is reached of how to make things run without funds.
In order to understand better what is happening I looked on the internet where I found things like this:
Budget Deficit vs. National Debt -
Suppose you want to spend more money this month than your income. This situation is called a budget deficit. So you borrow. The amount you borrowed (and now owe) is called your debt. You have to pay interest on your debt. If next month you dont have enough money to cover your spending (another deficit), you must borrow some more, and youll still have to pay the interest on the loan. If you have a deficit every month, you keep borrowing and your debt grows. Soon the interest payment on your loan is bigger than any other item in your budget. Eventually, all you can do is pay the interest payment and you dont have any money left over for anything else. This situation is known as bankruptcy.
Each year since 1969 Congress has spent more money than its income. The Treasury Department has to borrow money to meet Congresss appropriations. The total borrowed is more than $8,000,000,000,000 and growing. Even when government officials claim to have a surplus, they still spend more than they get. We pay interest on that huge debt.
My only comment would be that this is the same government that promotes spending at a time of crisis like after the 9/11 tragedy.
It is also the same administration that keeps giving a tax break to the rich while the middle class becomes the poor working class in U.S.
Now, when election time is very close at local level and about a year away at national level, it is the right time to ask the hard questions:
Where is the tax money going to? How are the spending decisions made? And above all how are the campaigns being funded and by whom, because that determines how the money will be spent.
I understand people expect a more cheerful editorial but under the circumstances this is all I have to offer.