CBO report: Debt will rise to 90% of GDP

[I AM NOT THAT GUY 5,715]

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.

http://www.washingtontimes.com/news/2010/mar/26/cbos-2020-vision-debt-will-rise-to-90-of-gdp/

[Pooky 3,792]

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.

So what this is basically telling us is that although BushBaby was pretty awful, economically speaking, Obama is taking economic stupidity to a whole new level.

I thought this administration was supposed to be an improvement over the last one?

[I AM NOT THAT GUY 5,715]

Spare change we can believe in.

[luckytxn 2,264]

So what this is basically telling us is that although BushBaby was pretty awful, economically speaking, Obama is taking economic stupidity to a whole new level.

I thought this administration was supposed to be an improvement over the last one?

Strangely I never heard anyone say an improvement but did hear the word change. Unfortunately nobody remembers history and the many decades the Socialists controlled the government. If everyone had remembered then no one should be surprised that they are really doing the same thing as always. They did try to change their game plan and say they were progressive and that made many laugh.

As always they have been the tax and spend and socialize. Now they have taken the Neocons game and decided to spend even more and create record deficits that will make it near impossible to try to pay it off in many lifetimes.

[Ali G. 37]

Strangely I never heard anyone say an improvement but did hear the word change. Unfortunately nobody remembers history and the many decades the Socialists controlled the government. If everyone had remembered then no one should be surprised that they are really doing the same thing as always. They did try to change their game plan and say they were progressive and that made many laugh.

As always they have been the tax and spend and socialize. Now they have taken the Neocons game and decided to spend even more and create record deficits that will make it near impossible to try to pay it off in many lifetimes.

Which decades where these?

Actually the deficit was reduced under Clinton. Yes Texan, as alien as this may sound to you, advanced societies tax and then we reinvest back into our society. Something every business under the sun also does.

Edited April 26, 2010 by Ali G.