How’s this for a Friday afternoon story,
CBO report: Debt will rise to 90% of GDP
President Obama’s fiscal 2011 budget will generate nearly $10 trillion in cumulative budget deficits over the next 10 years, $1.2 trillion more than the administration projected, and raise the federal debt to 90 percent of the nation’s economic output by 2020, the Congressional Budget Office reported Thursday.
In its 2011 budget, which the White House Office of Management and Budget (OMB) released Feb. 1, the administration projected a 10-year deficit total of $8.53 trillion. After looking it over, CBO said in its final analysis, released Thursday, that the president’s budget would generate a combined $9.75 trillion in deficits over the next decade.
“An additional $1.2 trillion in debt dumped on [GDP] to our children makes a huge difference,” said Brian Riedl, a budget analyst at the conservative Heritage Foundation. “That represents an additional debt of $10,000 per household above and beyond the federal debt they are already carrying.”
The federal public debt, which was $6.3 trillion ($56,000 per household) when Mr. Obama entered office amid an economic crisis, totals $8.2 trillion ($72,000 per household) today, and it’s headed toward $20.3 trillion (more than $170,000 per household) in 2020, according to CBO’s deficit estimates.
That figure would equal 90 percent of the estimated gross domestic product in 2020, up from 40 percent at the end of fiscal 2008. By comparison, America’s debt-to-GDP ratio peaked at 109 percent at the end of World War II, while the ratio for economically troubled Greece hit 115 percent last year.
You know you’re in trouble when your budget deficits are compared to that of Greece’s.
Hmmm… when did the Democrats take control of Congress?
Jawa takes a trip down memory lane,
Hope, change, whatever.
O Bloody Hell says
The key statistic:
> would equal 90 percent of the estimated gross domestic product in 2020, up from 40 percent at the end of fiscal 2008.
We’ve put a raging alcoholic in charge of stocking the liquor cabinet and signing off on the bank account.
It was reported this week that Panama’s current ratio is 45%. The government’s plans are to make it go down to 35% by 2014. That is what a country gets when it elects a businessman for president.