Other government funded interests such as education, military and infrastructure will suffer greatly as well. If Congress does not control its overspending through measures such as passing a balanced budget amendment to the Constitution and adhering to it, the country’s economic future is in deep peril.
A century and a half ago, the German social philosopher Karl Marx addressed and predicted capitalistic societies succumbing to debt in order to pay for military conquests designed to increase wealth. Marx suggested that centralization, the mergers of large capitalist industry, would become increasingly frequent. Centralization enlarges market share, decreases competition and further reduces labor costs. The one element of a nation’s wealth that the working class would forever take part in is its national debt. A truer prediction has never been postulated. The ruling class creates the debt by subsidizing needed and, some would argue, un-needed projects that fuel personal interests in addition to military expenditures. Workers must pay off this debt with a portion of their earnings. “Taxpayers pay interest to the rich bondholders of that national debt. The rich make money both ways – in the creation of the debt and the interest paid on it” (Sudborough, 2004).
Started in 1791, the national debt was, by those days’ standards, an incredible $75 million. Due to President Andrew Jackson’s prudent approach to government spending, the national debt was lowered to, again adjusted to today’s standards, to an incredible $37 thousand (Suter, 2004). According to the Commerce Department, the yearly payment on this debt, the deficit, reached $725.8 billion in 2006. (Armstrong, 2006). This year’s deficit, according to the just released Obama Budget, will be $1.6 Trillion. The National Debt will total $15.4