Per the USA Inc.: A Basic Summary of America’s Financial Statements, treating the U.S. federal government as though it were a business and applying financial accounting standards, the balance sheet drilldown (page 210) summarizes a -44 TRILLION dollar net worth when the federal debt and unfunded entitlement liabilities are factored in. This report was produced for The Heritage Foundation by the accounting firm Kleiner, Perkins, Caufield & Byers (apparently a non-partisan company since it announces on its website that it is currently working with “Al Gore’s Generation Investment Management to solve our climate crisis”). On the next page, 211, the report add a note of caution:
There are doubts about the accuracy of such a big negative number, especially when the value of USA Inc.’s assets is so hard to calculate. The value of natural resources, the power to tax, the ability to print the world’s reserve currency, the human capital in our educational system – these and other assets would clearly reduce that number, if they could be accurately calculated.
Given the differences between government and corporate accounting, what matters is not the exact number, but the trend – which is clearly moving in the wrong direction. Liabilities have been growing faster than assets.
However, what do we hear from Lynn Woolsey? Nothing that constructively and REALLY contributes to cutting our severely bloated federal budget and future obligations. She points her finger at the majority party in the House that at least is trying to cut back the TRILLIONS being spent. She and the Congressional Progressive Caucus even lie about GOP statements made regarding jobs and cutbacks. And, of course, she complains that the ongoing wars in the Middle East are eating up money that could be spent here (or even used to cut the deficit), but one has to ask again why she wasn’t able to persuade her own party, when it had the power, to end those wars. It does no good to blame the other party now when she could not manage the desired result when the Dems were fully in charge of the House (and Senate and the presidency).
We must change the way Washington D.C. does “business” and reduce the heavy debts with which we are burdening ourselves — and most importantly our children and grandchildren. Lynn Woolsey’s attitude about this vital issue is simply unacceptable.