CBO Shock Report: National Deficit Could Consume 70% of Our GDP by the End of This Year
The deficit could also double our GDP by 2037. At that point, it's Bill Paxton/Aliens time: Game over, man.
The federal debt is expected to be 70% of the gross domestic product by the end of this year, and could be double the GDP by the year 2037 unless major changes are made, the Congressional Budget Office reports.
"Over the past few years, the federal government has been recording budget deficits that are the largest as a share of the economy since 1945," says a new CBO report. "Consequently, the amount of federal debt held by the public has surged.
"By the end of this year," the report added, "CBO projects that the federal debt will reach roughly 70 percent of gross domestic product (GDP), the highest percentage since shortly after World War II."
Claims that Obama has cut the deficit: Lies.
The Romney campaign reacts:
“Today’s CBO report confirms that President Obama has placed us on a path to fiscal ruin. This is a President who promised to cut the deficit in half, but proceeded to run four consecutive trillion-dollar deficits and accumulate nearly as much publicly held debt as all prior presidents combined. Instead of displaying leadership, the President has proposed a new budget that Congress rejected unanimously. Instead of tackling entitlement reform, he has made clear that he has no plan for addressing the challenge. It is immoral to place such a burden on future generations, and Mitt Romney will not allow it to continue.” –Lanhee Chen, Romney for President Policy Director
Yet liberals tend to advocate that Obama's stimulus wasn't large enough, and that we need yet more federal spending to repair the economy.