Hi,
Of course, you're aware that in order for your bottom two program to be enacted, we would require some monstrous and consistent surpluses!
No, the third simply requires that the annual expenditure on the debt be 47 billion. That includes both the interest and the pay down. Since the principle is decreasing, the amount needed to cover the interest would also be decreasing. That means that the amount put to the principle is increasing.
The fourth is like the third, except that the amount paid per year is 47 billion adjusted for inflation. So"(given the fact that 47 billion dollars (corrected or not) when added to the 45 billion dollars in real interest payments is a BIG expense for our smaller economy)" is totally off the mark.
Since you missed the point on items 3 and 4, you missed the conclusions as well. By spending 4% more on the debt than you presently do (47 billion vs 45 billion), you could retire it in 23 years. If the debt is 25% of your economy (and I have no idea, but if it is less, my argument works even better) then the payback would make it 26% of your economy. Not that much bigger a bite.
EDIT: Sent you that spreadsheet.
--Pete
Of course, you're aware that in order for your bottom two program to be enacted, we would require some monstrous and consistent surpluses!
No, the third simply requires that the annual expenditure on the debt be 47 billion. That includes both the interest and the pay down. Since the principle is decreasing, the amount needed to cover the interest would also be decreasing. That means that the amount put to the principle is increasing.
The fourth is like the third, except that the amount paid per year is 47 billion adjusted for inflation. So"(given the fact that 47 billion dollars (corrected or not) when added to the 45 billion dollars in real interest payments is a BIG expense for our smaller economy)" is totally off the mark.
Since you missed the point on items 3 and 4, you missed the conclusions as well. By spending 4% more on the debt than you presently do (47 billion vs 45 billion), you could retire it in 23 years. If the debt is 25% of your economy (and I have no idea, but if it is less, my argument works even better) then the payback would make it 26% of your economy. Not that much bigger a bite.
EDIT: Sent you that spreadsheet.
--Pete
How big was the aquarium in Noah's ark?