- We are a family that makes $22,000
- We are a family that spends $38,000
- That is a deficit of $16,000 annually
- We owe $150,000
If you consider our debt like a family would their mortgage, it's not a huge problem at all. Over time, with regular income raises (GDP increasing), we are actually just fine.
Our problem is that we don't make enough money to pay what we spend. We need to clearly to bring in more revenue AND lower our spending.
Since congress is not likely to increase taxes on individuals (to where it is in most countries), then we need to increase the revenue from businesses, even 1-2% would make a huge difference but republicans won't even consider this. Most countries do not allow writeoffs to zero like we do here in the US. Multi-national companies use the IRS tax code to write off all R&D spending here and not elsewhere. We here that we have the highest corporation tax in the world, maybe, but that's the top line, the bottom line is what counts and we take in about the lowest tax rate in the world.
As far as spending is concerned, wow, we have a problem, again in congress and this time, its the democrats. Probably a serious look at medicare, medicaid and social security makes sense.