And with his budget continuing to add debt at a rate of over $1 trillion/year for the next decade, the debt will grow significantly larger than the national economy for the foreseeable future if we take the course the President has plotted.
President Obama projects that the gross federal debt will top $15 trillion this year, officially equalling the size of the entire U.S. economy, and will jump to nearly than $21 trillion in five years’ time.
Amid the other staggering numbers in the budget Mr. Obama sent to Congress on Monday, the debt stands out — both because Congress will need to vote to raise the debt limit later this year, and because the numbers are so large.
Mr. Obama‘s budget said 2011 will see the biggest one-year jump in debt in history, or nearly $2 trillion in a single year. And the administration says it will reach $15.476 trillion by Sept. 30, the end of the fiscal year, to reach 102.6 percent of gross domestic product (GDP) — the first time since World War II that dubious figure has been reached.
In one often-cited study, two economists have argued that when gross debt passes 90 percent it hinders overall economic growth.
The president’s budget said debt as a percentage of GDP will top out at 106 percent in 2013, but only if the economy booms.
“I still don’t see a sense of urgency from the president about the massive federal debt,” said Sen. Lamar Alexander, Tennessee Republican. “His budget calls for too much government borrowing – even though the debt is already at a level that makes it harder to create private-sector jobs.”
“The Stimulus failed. This budget says `Do it again.’ The President has already added more than 3 trillion dollars to the debt as we lost another three million jobs. This budget says let’s add more debt and see if we get a different result,” says Senate Majority Leader Mitch McConnell.
Obama’s budget is, to put it simply, not one a serious or responsible leader would consider.