Drowning in debt: Obama's spending and borrowing leaves U.S. gasping for air

NY Daily News ^ | Mort Zuckerman

[indianrightwinger]

The unprecedented, improbable and indeed almost unimaginable global financial crisis has virtually put an end to the comfortable notion that American and Western capitalism would dominate the world economy. In turn, the financial meltdown threatening another Great Depression has been the rationale for a phenomenal expansion of government spending to prop up demand and fend off economic disaster.

As a result, the deficit quadrupled from $459 billion in 2008 to $1.85 trillion this year. It has gone from 3.2% of gross domestic product to 13.1%, twice the post-World War II record of 6% in 1983 under President Reagan. What's more, the debt surge is unlike the one that accompanied WWII in that it will not be temporary.

The nonpartisan Congressional Budget Office reckons that the deficit will run for a decade and will still exceed $1.2 trillion in 2019. By that time, the United States will have virtually doubled its national debt, to over $17 trillion. Then, after 2019, we get another turn of the screw as the peak waves of baby boomers move into their retirement years and costs soar for the major entitlements, Social Security and Medicare.

At 41% of GDP in 2008, the accumulated federal debt will rise to 82% by 2019. One out of every six dollars spent then by the feds will go to interest, compared with 1 in 12 dollars last year. These out-year budgets will require an increase in everyone's income taxes, raising federal income taxes an average of $11,000 for families, a hike of 55% per household - a political impossibility.

The Government Accountability Office estimates that by 2040, interest payments will absorb 30% of all revenues and entitlements will consume the rest, leaving nothing for defense, education or veterans' pensions.

[driftless2]

A little Gershwin goes a long way.

[lionheart 247365]

Can you say ,,,,,,,,,,,,,,, MARTIAL LAW ???

The answer to a long term presidency without an election .

[kellynla]

Here we are living in the richest country on the planet with enough oil, natural gas & coal to supply our energy needs for the next 300 hundred years. And I won't even get into the nuclear energy possibilities where we could be building cogeneration nuclear power plants on all three coasts that would provide not only all the electricity we would ever need but enough water to irrigate the entire country. And what are we doing? We're borrowing money from the Chicoms so Americans can continue to buy MADE IN CHINA merchandise keeping the Chicom economy & government afloat while the American economy goes to hell in a hand-basket. And we're paying for the War on Terror on BOTH ends every time we fill up at the pump...I believe Forrest Gump said it best...”Stupid is as stupid does.”

Well, I've seen this play before...
an incompetent Liberal screws up the economy and a conservative has to come in and “clean up the mess.”

Lets just hope and pray that there's another candidate waiting in the wings to play the part of Ronald Reagan in three years.

Semper Fi,
Kelly

[GOPJ]

Yep, Mort’s a liberal.

[Ann Archy]

The people that pay NO INCOME TAXES don’t give a rat’s patootie how much the debt is!! EVERYONE NEEDS SKIN IN THE GAME!! FLAT TAX.....15-18% NOW!

[BP2]

[Jack Black]

Ping