Government Math ... and What It Could Mean to You
The federal government is spending $118 billion more per month than it brings in. It makes up that difference by borrowing, which has brought the nation right up to its $14.3 trillion debt ceiling. The answer?

EDWARDSVILLE, IL, June 02, 2011 /24-7PressRelease/ -- Vicki Rolens, managing director of the Federation of American Consumers and Travelers (FACT), has released some of the latest information and projections concerning government spending. "Sometimes we consumers feel very far removed from all the budget happenings in Washington," says Rolens, "but those happenings can and almost certainly will have a direct impact on most of our lives."

Right now, Rolens says, the federal government is spending $118 billion more per month than it brings in. It makes up that difference by borrowing, which has brought the nation right up to its $14.3 trillion debt ceiling. The answer? Raise that ceiling yet again (for something like the tenth time in ten years) or face some extremely difficult circumstances: massive tax increases, the elimination or reduction of federal programs, etc.

Some other relevant statistics and predictions:

By 2025, virtually all federal tax revenue will be consumed by Medicare, Medicaid, Social Security and interest on the debt. All other government obligations will need to be paid for with borrowed money -- which, of course, means further increases to the debt ceiling until, at some point, the interest on all that debt can no longer be paid and/or the U.S.can no longer find creditors.

Rolens says she saw a quote from a representative of the Government Accountability Office (GAO) which may have summed up the budget/debt conundrum best:

"Everybody wants a small government. Everybody would like low taxes. And they'd like government to do everything that the think government should do ... but the arithmetic can be a problem."

Press Release Contact Information:

Vicki Rolens
Federation of American Consumers
Managing Director
318 Hillsboro Ave.
Edwardsville, IL
US 62025
Voice: 800-USA-FACT
Website: Visit Our Website