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National Debt

The Numbers Only Add up One Way with an Obama Budget

  • June 28, 2011

    This past week the non-partisan Congressional Budget Office (CBO) released their 2011 Long-Term Budget Outlook. This document revealed that budget deficits will probably drop in the next few years, but long-term prospects are “daunting” as spending on entitlements and health care spikes. Among their chief concerns unsurprisingly is the amount of debt we’re adding up. According to the CBO the total federal debt will grow from about 69% of GDP this year to 84% by 2035. This latest report will only add fuel to the fire as top House, Senate, and Administration leaders meet to discuss a deal to raise the country’s debt limit. A deadline of August 2nd is the final day the Government has to come to a resolution or risk default.
     
    These numbers should come to no surprise to the millions of Americans who went to the polls in November of 2010 to vote for an end to reckless spending and bailouts in Washington. These numbers only serve to reinforce their fear that if action is not taken by our elected officials in the nation’s capital this nation is well on its way to a fiscal crisis. It's time that the President and Members of Congress realize that our country's credit card is maxed out. We simply can not afford to continue on the path that has amassed a staggering $14.6 trillion in debt. Nearly a third of that debt has been piled on by President Obama in the past 3 years due to stimulus programs and bailouts which have failed to kick start the economy.
     
    Take a look here at some of the numbers associated with an out of control federal budget:
     
    $11,300: Negative Effect of Debt on Gross National Product per Person in 2035.
     
    2060: Year Federal Spending Will Reach 50 Percent Of GDP.
     
    2037: Year That Federal Debt Will Reach 200 Percent of GDP.
     
    101%: Federal Debt Held by the Public as Share of GDP in 2021.
     
    70%: Federal Debt Held by the Public as Share of GDP by End of the Year.
     
    25.9%: Federal Spending As a Share of GDP by 2021.
     
    18%: Amount GNP Would Be Lowered Due To Debt’s Effect on Economic Growth By 2035.
     
    8.4%: Average Unemployment Rate Projected For 2012.
     
    4.4%: Share Of GDP That Interest On The Debt Will Consume In 2021.
     
    SOURCE: CBO’s 2011 Long-Term Budget Outlook,” Congressional Budget Office, 6/22/11


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