According to the House Minority Leader in Congress, the American people will be taking on an average of $10,000 in debt per person due to this stimulus package that just passed.
“With a price tag of more than $1 trillion when you factor in interest, it costs every family almost $10,000 in added debt. This is an act of generational theft that our children and grandchildren will be paying for far into the future.”
This was a completely partisan quote by a Republican that did not agree with the economic recovery bill that just passed in the House of Representatives, but if you divide the cost of this bill by the amount of taxpaying Americans in the United States, his numbers are roughly correct about the debt that is being passed onto us. I know, the title to this post was a little silly, but not really when you sit down and think about it.
For those of us working very hard to eliminate our personal debt, the government has just handed each of us an extra $10,000 in debt to add on to the total we already have in our own personal debt. Sure, we won’t get monthly loan coupons in the mail from China, the U.S. Treasury, or whoever we borrow this money from, but we will pay this money back in the form of tax increases and/or increasing our spending to stimulate the economy. In a perfect world, this package will generate enough income tax from job creations, but if it doesn’t generate enough money to repay the money we are spending for this plan, the only way for the local, state, and federal government to recover the money is to increase income, capital gains, property, and sales taxes.
Maybe I will put an extra $10,000 in my debt snowball with an asterisk next to it. Great, now my debt snowball is going to look like baseball’s statistic for the homerun leader.