To the Editor:

Total debt in 2008, $10 trillion, total debt in 2017 will be $20 trillion. That is $20,000,000,000,000. The amount each individual in the USA owes to cover this debt is $60,000.

The amount of interest on this debt in 2016 is $280 billion ($280,000,000,000). This is a 2016 $661 billion deficit less the interest of $240 billion received from the previous debt interest payments on $19 trillion dollars of debt. Amount that each individual in the USA must pay each year to cover this interest $900.

Total USA 2016 budget is $3.952 billion. Total income to the Federal Government in 2016 is $3.3 billion.

Defense cost is $595 billion; non-defense (cost of running the government) is $627 billion; other congressional mandatory programs such as support for immigrants/education/etc. is $608 billion.

Medicare cost in the 2016 budget $589 billion, Medicare income from withholding is $244 billion.

Social Security cost in 2016 budget $924 billion, social security income from withholding in 2016 is

$798 billion.

Medicaid income in 2016 is $0; Medicaid cost in 2016 is $367 billion. Total budget deficit in 2016 is $616 billion.

Budget deficit in 2016 after reducing it by the interest of $240 billion paid from borrowers of our debt of $19 trillion ($616 billion less $240 billion = $376 billion). Interest is around 1.3 percent.

It is obvious that the $616 billion deficit can be traced to the Medicaid cost of $367 billion and to the Medicare deficit, which has two elements: 1) old age insurance; and 2) funds paid to individuals with disabilities.

Ratio of our debt to our Gross Domestic Product (sum of all products/services in a given year) is

112 percent. Our GDP is $17.94 trillion.

Greece had a debt/GDP ratio of 177 percent when they defaulted. If they agree to their creditor’s terms they will have a ratio of 145 percent.

Solution: Get rid of the restrictions and taxes on our free enterprise businesses, which will increase the growth of our economy and bring in more taxes as a result. Also, letting the states, with the assistance of Federal block grants, have more control over many aspects of governmental spending will increase the efficiency of many current Federal programs. It will take a long time to get back on a financial recovery for our country. Maybe a Federal balanced budget requirement is necessary such as we have in North Carolina.

Gene Schwartz
Pinetown