If all 50 States have balanced budgets, how come the country as a whole has so much debt?

[OfTheCross]

I'm gonna be doing some research on this but this general question just popped in my head.

I see it as: all the States are members of the same family in the same house, if we accrue debt, it's as a family. If we pay it off, it's as a family.

But the States, as far as I know, don't pay into the debt.

It's like the Federal govt isn't part of the family. They do what they want but we have to follow their rules.

I guess maybe they're our abusive dad?

 

[Strapped]

Afganistan, iraq , libya , syria , nato , venezuela & protecting the free world from communism policing the world is expensive

 

[bnew]

federal government

 

[606onit]

Dump the debt in DC (a non state ) and leave em high n dry when the time comes

I have no clue.

 

[bnew]

it's how politicians steal from the public but on a national scale. this is why fed contracts are coveted. you can charge ridiculous sums for all types of stuff and tax-payers are on the hook for it.

 

[OfTheCross]

Well.. This was good info

 

[Secure Da Bag]

• All 50 states may have balanced budgets, from what I understand, it's accounting trickery. Basically they balance those budgets by borrowing and selling bonds. So on paper, it looks like they are in the black. Once you turn the page though, you can see they're in the red.
  
• Also the federal government funds a lot of projects for states. It's what Congress calls "pork". The federal government has a lot of mismanagement and overspending. It covers that buy selling a lot of bonds. The interest on those bonds drive up the debt even more.
  
• Congress often says that SS and Medicare are the biggest drivers of debt followed by the military. But the bond interest I bet actually makes it in the top 3.

 

[Professor Emeritus]

A. Defense spending
B. Federal government dumps a lot of money into the states.

 

[Geek Nasty]

The federal government also subsidizes a lot of state budgets. Kind of like Obamacare works.