Report: In one year, U.S. public debt has risen from 41 to 53 percent of GDPAnother half-trillion dollars in "omnibus" spending was approved on Monday. Money we don't have. And haven't a prayer of obtaining.
By David Freddoso, Commentary Staff Writer, Washington Examiner
Today's report from the non-partisan Committee for a Responsible Federal Budget is a sobering read:
"Over the past year alone, the public debt of the United States rose sharply from 41 to 53 percent of gross domestic product (GDP). Under reasonable assumptions, the debt is projected to grow steadily, reaching 85 percent of GDP by 2018, 100 percent by 2022, and 200 percent in 2038.However, before the debt reached such high levels, the United States would almost certainly experience a debt-driven crisis — something previously viewed as almost unfathomable in the world’s largest economy."
"Public debt" refers to the portion of the debt not held by the government in its various trust funds.
The solution, the report states, must revolve around reforms to "programs that are growing faster than the economy -- notably Medicare, Medicaid, Social Security, and certain tax policies." (The latter is identified elsewhere as the tax cuts of 2001 and 2003.) These cheery-eyed suggestions are the most frightening part of the report. They are so obvious, and they have so little chance of being put into effect. [link]