WHAT’S A TRILLION BETWEEN FRIENDS? – I’m old enough to remember when the United States government debt was “just” one trillion dollars. Now we are entering an era of one trillion dollar budget deficits:
President Trump has overseen a dramatic worsening of the government’s finances in his first 14 months in office, sending deficits soaring to more than $800 billion this year topping $1 trillion by 2020, and staying there every year for the foreseeable future, the Congressional Budget Office said Monday.
Last year’s tax cuts will sap the government of money, even as the budget and spending deals approved this year will push the government to spend more money — cash it will have to borrow.
That will quickly push deficits back to the levels they were during the Obama administration, when the government was recovering from the Great Recession.
As those yearly deficits pile up, the debt will deepen dramatically. Within a decade the debt held by the public will total $28.7 trillion, flirting with rates nearly 100 percent of the economy, as measured by gross domestic product, the CBO said.
That would be the highest rate since 1946, which marked the end of war-era borrowing, and it would be twice the average debt the government has held over the last 50 years.
What is the point of having the supposed conservatives in control of the government – at the moment, though probably not for long, the Presidency as well as both chambers of Congress – if government spending continues to be as profligate as under the left? The consequent government debt is not just impossible to ever pay back, but surely its ever faster accumulation must be unsustainable. Mind boggles.