It shouldn’t surprise Americans that their government has not told them the whole truth about our federal deficit. However, the “USA Today” on May 24, 2012, unveiled a more accurate accounting telling us how deep we are in debt… and it’s about four times deeper than we were told.
According to our executive and legislative branches, our federal budget deficit was $1.3 trillion in 2011. The actual amount was $5 trillion after counting liabilities for Social Security, Medicare, and other federal retirement programs. There is no logic in ignoring these large amounts except that it shows that we are deeper in the hole than we thought. It is interesting that federal law requires companies to report retirement commitments in their financial statements, but the federal government exempts itself from this requirement.
This deficit would equal to $42,054 per household. The last Census indicated that the median income per household was $49,445, leaving us all a whopping $7,391 to pay for our house, car, groceries, gasoline, utilities, health care costs, and other household expenses.
And don’t blame the Democrats or Republicans. This is a “twofer” special where both parties share the blame. Over the years, it hasn’t mattered which party ran Congress or the White House. Both parties used the same accounting system to avoid counting the retirement benefits.
In case you planned on buying a home or car in the future, you should know that each household in the United States owes $561,254 of the federal debt. I wonder if we can file for bankruptcy.