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Out Of Control Spending |
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Not since World War II have federal deficits grown at such a rapid pace. Under the President’s proposed budget this year, annual budget deficits are averaging just under $1 trillion for the next decade. That level of spending is simply not sustainable for our country. While the deficits forecasted are foreboding, even more dangerous is the continued growth of our national debt if this spending continues. Currently our national debt is $13 trillion, which is a staggering number. However, our national debt will almost double and reach $25.8 trillion by 2020 under the projected spending levels of the Administration. |
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Why Our Debt Matters |
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Just look to several of the European countries in the news lately to see why such high levels of permanent spending and debt are a recipe for collapse. Concerns over Greece’s debts have led to an effective boycott of Greek debt on the world markets, according to the BBC, which endangers the entire Greek economy. The ultimate cause of this Greek crisis is the country’s woeful national debt, which has reached 115 percent of GDP. The U.S. is currently just behind Greece and Italy in total debt held as a percentage of GDP but will soon reach similar heights of the those troubled countries in the coming years.
By 2020, public debt in the U.S. will be 90 percent of GDP and will continue its upward trajectory. Traditionally, a debt-to-GDP ratio of 90 percent or more is associated with the risk of a sovereign debt crisis. Greece’s deficit and debt crisis is a direct result of the country’s choice to continue their unsustainable spending year after year. Unless we cut back the proposed spending by the Administration and enact some common sense spending cuts, the U.S. will be continuing down the same path as Greece.
Best, |
