As I write this entry, our federal debt is a stunning, unthinkable $19.3 TRILLION. Currently projected to reach a staggering $20 TRILLION by year’s end. (Source: www.usdebtclock.org.) Why is it building, what can be done and most importantly how does it affect your business and you personally, whether you own a business or not.
In answering , lets first differentiate between what is debt and what is a deficit. When I refer to “Debt”, I am referencing the total amount of money we OWE. The deficit, while directly contributing to the debt, is the amount current in our federal budget. This means we are SPENDING more than we are taking in in terms of revenue. Our current budget deficit is OVER A HALF TRILLION DOLLARS. It is growing faster than I can type, So that is why our debt is accumulating at such a rapid pace.
I am concerned because we are literally bankrupting our children and for many , our grandchildren. I honestly believe that the only way to correct such problems is in a combination of closing tax deductions, increasing taxes and a reduction in services, if it is to be solved at all. There is some hope through the creation of meaningful jobs. This is why its imperative for everyone to begin a retirement and savings plan.
Start saving now or continue saving, no matter what amount. For the business owner, specifically reinvest in your enterprise to make it a more valuable, growing concern.