John on December 18, 2009 at 9:40 am
That’s the consensus of a bipartisan group of 34 economists including seven former OMB directors, seven CBO directors and one former chair of the FED:
The United States, they unanimously said, is facing “a debt-driven crisis — something previously viewed as almost unfathomable in the world’s largest economy.” Under the impact of the worst economic calamity since the Great Depression, the federal government ran a deficit of $1.4 trillion this past year. The rescue effort was necessary, but in 2009 alone, the public debt grew 31 percent, from $5.8 trillion to $7.6 trillion, rising from 41 percent to 53 percent of gross domestic product (GDP).
Unless strong remedial steps are taken in the years just ahead, the debt is projected to rise to 85 percent of GDP by 2018 and 100 percent four years later. By that time, barely a dozen years from now, these sober-sided, deeply experienced folks say, the American economy is likely to be in ruins.
[T]hey want Obama in his State of the Union address to urge Congress to join in a pledge to stabilize the debt at no higher than 60 percent of GDP by 2018. (Remember, it is 53 percent now.) This would require actions by Congress and the administration to start reducing the projected annual deficits, which add to the debt, starting in 2012.
A good first start in capping red ink emissions would be killing ObamaCare, an expensive boondoggle we can ill afford.
Category: Energy & Economy |