2 thoughts on “Your government’s debt

  1. Damocles says:

    “In June, The Associated Press reported on the latest International Monetary Fund survey of the U.S. economy, which concluded that as a result of Trump’s “tax cuts and expected increases in defense and domestic programs, the federal budget deficit as a percentage of the total economy will exceed 4.5 percent of G.D.P. by next year — nearly double what it was just three years ago.” Such a “big boost … has not been seen in the United States since President Lyndon Johnson in the late 1960s boosted spending on the Vietnam War at the same time it was adopting Johnson’s Great Society programs.”
    Faced with so much debt, which the country will not be able to grow out of, The A.P. story continued, paraphrasing the I.M.F. report, the U.S. “may need to take politically painful steps,” such as cutting Social Security benefits and imposing higher taxes on consumers. (We’ll probably also have to limit spending on new roads, bridges and research.)
    You might want to let your kids know that.”
    Thomas L. Friedman, NYT Op-Ed Sept. 11, 2018 https://www.nytimes.com/2018/09/11/opinion/anonymous-op-ed-republican-party-trump.html

  2. Hey, Rube! says:

    “While it is often an overused and vague term, this year is showing that the “historic debt” not only has a definition, but it is becoming all too real for Americans heading into 2019.” https://thehill.com/opinion/finance/421737-missing-fiscal-sanity-in-washington
    “Bloomberg reported: “Total public debt outstanding has jumped by $1.36 trillion, or 6.6 percent, since the start of 2018, and by $1.9 trillion since President Donald Trump took office, according to the latest Treasury Department figures. The latter figure is roughly the size of Brazil’s gross domestic product.”
    As the Center for a Responsible Federal Budget noted, the current situation — where the deficit has jumped from 3.5 percent to 4.6 percent of GDP in one year — is “virtually unprecedented in current economic conditions.”
    Deficits are not magic and do not arise by chance. As usual, their primary cause continues to be overspending. Just last week, Congress passed a farm bill with a staggering price tag of $867 billion over the next 10 years.
    President Trump also recently announced his support for a $750 billion Pentagon budget, a full $100 billion above the congressionally mandated — and ignored — budget caps.

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