Early this month, about 15,000 strangers came to the rescue of an 88-year-old proudly working man in Michigan, a veteran, as a cashier at the Meijer supermarket from the dreadful life. Pretty generous lot gifted the man, Ed Bambas, with a $1.8 million check to retire gracefully and in dignity when one should enjoy the best that life has to offer. Thanks to the Australian social media influencer Sam Weidenhofer who raised such a respectable sum via crowdfunding at GoFundMe. Amazing feat by a man with the noble intentions leveraging the power of social media!
Merry Christmas and Happy Holidays!!
That is a spirit of our great country called United States of America (USA) and even more importantly a mankind that is bestowed with an inherently divine nature, just forgotten at times veiled by a thick layer of ignorance that is not so easy to break out of!
It is an average of over $100 contribution per each donor, pretty generous amount by thousands of good Samaritans. Clearly, it is beyond the race, religion, gender, color or political beliefs that one harbors. No one asked for or cared for any of such structural divisions of the society prior to their giving for such a noble cause. They only cared that it was a fellow human being just like themselves. Everyone banded together to lift the poor man from toiling at the ripe age of 88 when one shall be enjoying the fruits of the hard work and labor of his entire life, especially after serving our country for its defense needs.
All of these proceeds invested safely in a 10-year treasury notes can yield over 4% return netting approximately $75,000 income per year or over $6,000 per month for the widowed man, quite a decent sum for one person to survive even in this age of ‘uncomfortable’ inflation level for the most of the population in USA. Eventually upon his passing, the recipient of this largesse could always make a wise choice of passing the remaining sum, if not all, back to the community. Law of Karma is such an irrefutable principle of the universe!
With a backdrop like this, what can we do for our country?
During his inaugural address on January 20, 1961, President John F. Kennedy, spoke these beautiful words: “Do not ask what can a country do for me instead ask what I can do for country”. That is a true inspiration for the civic duty and public service.
Similarly, another one of our great presidents, Abraham Lincoln spoke these divine words during his second inaugural address in 1865: “With malice towards none; with charity for all… let us strive on to finish the work we are in”
Our current President often likes to be compared with or even ‘trump’ the great Abe Lincoln. However, it is extremely hard to ignore the stark contrast – malice towards none? – it is rather in abundance towards the most or at least half of the country pegged as liberal. Such a sad state of our country that it is beyond belief and hard to recognize now this nation badly defaced by this evil man enabled by his top goons and bootlicking sycophants and cheered by masses of ignorant and selfish populace. Unfortunately, the evil can only destroy the society, not create a good one. It is very painful to see such defacement.
United States is now on a stead path of incurring about $2 trillion in annual federal budget deficit or about 6% of GDP. There is no end in sight for such large deficits. Surplus? What does that mean? At this rate, with the experience of the current president who is quite adept at running his businesses to the ground and into bankruptcies is certainly quite keen on taking USA to the same destination of a total ruin.
See the attached matrix outlining the basic economic data of last 50 years for GDP, federal deficit, inflation, etc. sourced from Google Gemini that compiled the data from different government agencies. During the first term of our evil and incompetent president, who single-handedly raised the national debt by over $5 trillion (as part of the total of $7 trillion) by ignoring COVID-19 pandemic repercussions alone, raising 3% annual deficit to GDP ratio to 15% when he got kicked out of the White House.
Subsequent democratic administration led by the President Joe Biden brought it down to 6% level. It was better, yet still not anywhere near enough. Unfortunately, now, this is where we still seem to be ‘comfortable’ at this time – only to pay a huge price in not-so-distant future.
The only years for surpluses were 1998 thru 2001 primarily during the democratic administration of President Bill Clinton.
| Year | U.S. GDP ($T) | GDP Growth | Inflation (%) | Fed. Rev ($T) | Fed. Exp ($T) | Deficit ($B) | Rev % | Exp % | Def % | Total Debt ($T) |
| 2024 | $28.78 | 2.80% | 2.90% | $4.92 | $6.75 | ($1,833) | 17.10% | 23.50% | -6.40% | $35.46 |
| 2023 | $27.36 | 2.90% | 3.40% | $4.44 | $6.13 | ($1,695) | 16.20% | 22.40% | -6.20% | $33.17 |
| 2022 | $25.46 | 1.90% | 6.50% | $4.90 | $6.27 | ($1,375) | 19.20% | 24.60% | -5.40% | $30.93 |
| 2021 | $23.32 | 5.90% | 7.00% | $4.05 | $6.82 | ($2,772) | 17.40% | 29.20% | -11.90% | $28.43 |
| 2020 | $21.06 | -2.80% | 1.40% | $3.42 | $6.55 | ($3,132) | 16.20% | 31.10% | -14.90% | $26.95 |
| 2019 | $21.43 | 2.30% | 1.80% | $3.46 | $4.45 | ($984) | 16.10% | 20.80% | -4.60% | $22.72 |
| 2018 | $20.61 | 2.90% | 2.40% | $3.33 | $4.11 | ($779) | 16.20% | 19.90% | -3.80% | $21.52 |
| 2017 | $19.49 | 2.20% | 2.10% | $3.32 | $3.98 | ($666) | 17.00% | 20.40% | -3.40% | $20.24 |
| 2016 | $18.71 | 1.70% | 1.30% | $3.27 | $3.85 | ($585) | 17.50% | 20.60% | -3.10% | $19.57 |
| 2015 | $18.21 | 2.70% | 0.10% | $3.25 | $3.69 | ($442) | 17.80% | 20.30% | -2.40% | $18.15 |
| 2014 | $17.52 | 2.30% | 1.60% | $3.02 | $3.51 | ($483) | 17.20% | 20.00% | -2.80% | $17.82 |
| 2013 | $16.78 | 1.80% | 1.50% | $2.77 | $3.45 | ($680) | 16.50% | 20.60% | -4.10% | $16.74 |
| 2012 | $16.20 | 2.30% | 2.10% | $2.45 | $3.54 | ($1,087) | 15.10% | 21.90% | -6.70% | $16.07 |
| 2011 | $15.54 | 1.60% | 3.20% | $2.30 | $3.60 | ($1,300) | 14.80% | 23.20% | -8.40% | $14.79 |
| 2010 | $15.00 | 2.60% | 1.60% | $2.16 | $3.46 | ($1,294) | 14.40% | 23.10% | -8.60% | $13.56 |
| 2009 | $14.45 | -2.50% | -0.40% | $2.10 | $3.52 | ($1,413) | 14.50% | 24.40% | -9.80% | $11.91 |
| 2008 | $14.72 | 0.10% | 3.80% | $2.52 | $2.98 | ($459) | 17.10% | 20.20% | -3.10% | $10.02 |
| 2007 | $14.48 | 2.00% | 2.90% | $2.57 | $2.73 | ($161) | 17.70% | 18.90% | -1.10% | $9.01 |
| 2006 | $13.86 | 2.90% | 3.20% | $2.41 | $2.66 | ($248) | 17.40% | 19.20% | -1.80% | $8.51 |
| 2005 | $13.09 | 3.50% | 3.40% | $2.15 | $2.47 | ($318) | 16.40% | 18.90% | -2.40% | $7.93 |
| 2004 | $12.27 | 3.80% | 2.70% | $1.88 | $2.29 | ($413) | 15.30% | 18.70% | -3.40% | $7.38 |
| 2003 | $11.51 | 2.90% | 2.30% | $1.78 | $2.16 | ($378) | 15.50% | 18.80% | -3.30% | $6.78 |
| 2002 | $11.00 | 1.70% | 1.60% | $1.85 | $2.01 | ($158) | 16.80% | 18.30% | -1.40% | $6.23 |
| 2001 | $10.62 | 1.00% | 2.80% | $1.99 | $1.86 | $128 | 18.70% | 17.50% | 1.20% | $5.81 |
| 2000 | $10.28 | 4.10% | 3.40% | $2.03 | $1.79 | $236 | 19.70% | 17.40% | 2.30% | $5.67 |
| 1999 | $9.66 | 4.80% | 2.20% | $1.83 | $1.70 | $126 | 18.90% | 17.60% | 1.30% | $5.66 |
| 1998 | $9.09 | 4.50% | 1.60% | $1.72 | $1.65 | $69 | 18.90% | 18.20% | 0.80% | $5.53 |
| 1997 | $8.61 | 4.50% | 2.30% | $1.58 | $1.60 | ($22) | 18.40% | 18.60% | -0.30% | $5.41 |
| 1996 | $8.10 | 3.80% | 2.90% | $1.45 | $1.56 | ($107) | 17.90% | 19.30% | -1.30% | $5.22 |
| 1995 | $7.66 | 2.70% | 2.80% | $1.35 | $1.52 | ($164) | 17.60% | 19.80% | -2.10% | $4.97 |
| 1994 | $7.31 | 4.00% | 2.60% | $1.26 | $1.46 | ($203) | 17.20% | 20.00% | -2.80% | $4.69 |
| 1993 | $6.88 | 2.80% | 3.00% | $1.15 | $1.41 | ($255) | 16.70% | 20.50% | -3.70% | $4.41 |
| 1992 | $6.54 | 3.50% | 3.00% | $1.09 | $1.38 | ($290) | 16.70% | 21.10% | -4.40% | $4.06 |
| 1991 | $6.17 | -0.10% | 4.20% | $1.05 | $1.32 | ($269) | 17.00% | 21.40% | -4.40% | $3.67 |
| 1990 | $5.98 | 1.90% | 5.40% | $1.03 | $1.25 | ($221) | 17.20% | 20.90% | -3.70% | $3.23 |
| 1989 | $5.66 | 3.70% | 4.80% | $0.99 | $1.14 | ($152) | 17.50% | 20.10% | -2.70% | $2.86 |
| 1988 | $5.25 | 4.20% | 4.10% | $0.91 | $1.06 | ($155) | 17.30% | 20.20% | -3.00% | $2.60 |
| 1987 | $4.87 | 3.50% | 3.70% | $0.85 | $1.00 | ($150) | 17.50% | 20.50% | -3.10% | $2.35 |
| 1986 | $4.59 | 3.50% | 1.90% | $0.77 | $0.99 | ($221) | 16.80% | 21.60% | -4.80% | $2.13 |
| 1985 | $4.34 | 4.20% | 3.60% | $0.73 | $0.95 | ($212) | 16.80% | 21.90% | -4.90% | $1.82 |
| 1984 | $4.04 | 7.20% | 4.30% | $0.67 | $0.85 | ($185) | 16.60% | 21.00% | -4.60% | $1.58 |
| 1983 | $3.64 | 4.60% | 3.20% | $0.60 | $0.81 | ($208) | 16.50% | 22.30% | -5.70% | $1.38 |
| 1982 | $3.35 | -1.80% | 6.10% | $0.62 | $0.75 | ($128) | 18.50% | 22.40% | -3.80% | $1.14 |
| 1981 | $3.21 | 2.50% | 10.30% | $0.60 | $0.68 | ($79) | 18.70% | 21.20% | -2.50% | $1.00 |
| 1980 | $2.86 | -0.30% | 13.50% | $0.52 | $0.59 | ($74) | 18.20% | 20.60% | -2.60% | $0.91 |
| 1979 | $2.63 | 3.20% | 11.30% | $0.46 | $0.50 | ($40) | 17.50% | 19.00% | -1.50% | $0.83 |
| 1978 | $2.35 | 5.50% | 7.60% | $0.40 | $0.46 | ($59) | 17.00% | 19.60% | -2.50% | $0.78 |
| 1977 | $2.08 | 4.60% | 6.50% | $0.35 | $0.41 | ($54) | 16.80% | 19.70% | -2.60% | $0.71 |
| 1976 | $1.87 | 5.40% | 5.80% | $0.30 | $0.37 | ($74) | 16.00% | 19.80% | -4.00% | $0.62 |
| 1975 | $1.69 | -0.20% | 9.10% | $0.28 | $0.33 | ($53) | 16.60% | 19.50% | -3.10% | $0.53 |
Source: Google Gemini data compiled from various governmental agencies
Jamie Dimon, a great banker and solid business leader, J.P. Morgan CEO, opines, like any other great economist, that we must bring the deficit down to 3% just in order to survive and avoid the dire consequences. In fact, 3% is a sustainable deficit level for many countries without inviting much trouble. Otherwise, we can be another Argentina or many other countries in the world history. As a baseline, if not the worst case, we must set 3% as a target for our country to achieve soon without going completely broke.
Thankfully, it is an attainable target without much austerities that certain other countries had no choice but to go thru to avoid even further damage. U.S. dollar being a reserve currency for the world commerce that we have exploited so badly thus far can go only so far.
Oh, well, how do we get there? Just like the above inspiring example of lifting an 88-year-old man out of funk or being stuck in a working quagmire instead of enjoying time with the grandkids or even great grandkids. We need a good political leader who can make it happen, walk the talk and not just be the ‘snake oil salesman’ and worse yet evil hellbent on destruction of this great society.
As a start or at least fantasize on how we can even get there: Annually reduce the deficit by 1 percent of GDP – mere 1 percent and in six years we can be at 0 percent! Voila! Why even stop there? Even go beyond that by creating a surplus and start paying debt, if we want to reclaim our glorified past, be it 25 years or even 50 years.
The deficit reduction by one percent can be a mixture of the two: half percent increase in income and half a percent decrease in expense. Bingo! We have achieved one percent deficit reduction. How much difficult it can be? Yes, it is not an easy feat. Though, it is too difficult? Not at all! If we put our minds to it, we can make it happen much like we do for other things in life.
Then again, in Washington, nothing is easy, unfortunately. Hence, the current sad state of our once-great nation. Democrats like to spend and tax, both, however, Republicans, unfortunately, only likes to cut the taxes, i.e. reduce income as per failed Reaganomics policies. It is a loose-loose proposition that has only morphed the solid U.S. economy into a disastrous one by turning a net creditor nation into a debtor nation in last 40 years.
Currently, U.S. economy is humming at $30 trillion dollar mark and one percent deficit is $300 billion. This means that we need to adjust $150 billion on the income side and a same amount of $150 billion on the expense side of the income statement of the federal government. Thereby, in our budget of $7 trillion expenditures, an adjustment of a little over 2% is needed. On the income side, the receipts of $5 trillion, it requires an adjustment of about 3%. You see the gap – $5 trillion in revenue and $7 trillion in expenses is a whopping and eye popping! It is certainly taking us to the direction of a dump.
Even most of the households do the same as a big bulk of them live within their means and the budget. Can we not do the same for our country?
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