UP Ibalon Bicol: US Debt: runaway spending in Obama’s ambitious recovery plan worries Americans

US Debt: runaway spending in Obama’s ambitious recovery plan worries Americans

6/01/2009 | Posted by mesiamd | Edit Post

“President Obama's ambitious plans to cut middle-class taxes, overhaul health care and expand access to college would require massive borrowing over the next decade, leaving the nation mired far deeper in debt than the White House previously estimated...

Tax collections, meanwhile, would lag well behind spending, producing huge annual budget deficits that would force the nation to borrow nearly $9.3 trillion over the next decade -- $2.3 trillion more than the president predicted when he unveiled his budget request just one month ago.” ----Washington Post (05/21/09, Montgomery, L)

To give the public a picture of what is to come, among high-profile company failures, on Monday, June 1, 2009, General Motors (GM,) the world’s largest automaker is poised to file bankruptcy (Chapter 11) in a US court in spite of the earlier bail-out extended by the government.

By placing the governmment stakes on the faltering giant car manufacturing company, the Obama administration is putting huge burden on the tax-payers. There are $20 billion dollars in federal assistance so far given by the Treasury in exchange for about 60% controlling stakes of the company. In addition to the $20 billion dollars, Obama plans to tell the Americans that an additional $30 billion is needed to see GM go through bankruptcy reorganization.

American taxpayers don't know if their money is being used wisely by their leaders. No one knows how the automaker can bring back the business to its old glory. Customers are uncertain, worried, and mad---something that corporate America haven't seen before. There will be more than 1,000 dealerships and plants that will be closed. About 20,000 workers in the car industry will be laid off as a result of the bankruptcy.

According to the U.S. National Debt Clock, the outstanding outstanding public debt as of June 1, 2009 is: $ 11,323,565,316,132.15. With the estimated population of the United States to be 306,284,942, each citizen's debt burden is pegged at about $36,970.69. How can Americans pay these?

The average US citizen may not fully realize that excessive borrowing and spending will likely mortgage the future of the children of the next generation. As cautious citizens have warned, the richest nation on earth may end up dirt poor earlier than predicted. The alarm is met with avoidance and silent dread by those who hear about it, especially those who think that Obama is the answer to their money problems..(Photo credit: Debtfree:Danilov) =0

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Labels: bailout, bankruptcy, Barack Obama, budget, economy, General Motors, GM, money, national economic planners, Totie Mesia, trillion dollars, US debt

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US Debt: runaway spending in Obama’s ambitious recovery plan worries Americans

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