What Our Grandchildren Can Remember Us By

These are projections from the CBO.  Note that the government expects continued government irresponsibility.

Deficits to Decrease - But Not For Long

By Jeanne Sahadi, CNNMoney, January 31, 2012

http://money.cnn.com/2012/01/31/news/economy/cbo_budget_economy/index.htm?eref=mrss_igoogle_business

With this kind of fiscal irresponsibility, we can expect to pay much higher interest rates on national debt which would push the deficit and debt far higher than tese projections.  Even if the economy were growing for most of the projected period, we’d still have a national debt of 125% of GDP by 2022.  Without GDP growth, our debt would reach 155% of GDP.  In either case, interest costs would certainly grow – that’s the stuff of Greece. 

Add inflation to that;  have you noticed that the prices of everything but houses are going up?  Food, entertainment and basic services are up substantially during this recession, at a pace that far exceeds the growth in personal income.  These things together mean maximum deflation of the size of the middle class.  Our grandkids will be delivering pizza for a living.   

We’ll have to keep replacing politicians until we find some that will tell us the simple truth.  Government cannot continue to promise benefits that our grandchildren cannot deliver.  Like any family, government must balance its expenditures to its income.  And there is no free lunch – we must pay for the services we demand from government.  Time to wake up folks.