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Old 04-22-2013, 06:43 AM
 
Location: Florida
77,012 posts, read 47,489,856 times
Reputation: 14806

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Remember 2009, the depths of the economic crisis? That year, the country spent way more than it brought in andran an eye-popping shortfall that topped 10% of the size of the economy.

This year the deficit is expected to be half that -- around 5.3% of GDP, the Congressional Budget Office estimates.

And by 2015, it's projected to drop to 2.4%.

What's more, the national debt that has accumulated from annual deficitsis also projected to fall to an estimated 73.1% of GDP in 2018 from an estimated 76.3% today.

 
Old 04-22-2013, 10:38 AM
 
Location: Laurentia
5,580 posts, read 7,981,200 times
Reputation: 2442
Ah, yes, a deficit of only 5% of GDP. The growth assumptions in all of these projections are likely too rosy, but even if the deficit was 5% of GDP that is historically extremely high, close to the biggest yearly deficit on record between 1947 and 2008. That isn't something to be proud of. Under the current budget the deficit will be at the very least $500 billion per year for as far as the eye can see. In terms of dollar amounts, the top 6 annual deficits of all time were the past 6 years - 2008, 2009, 2010, 2011, 2012, and 2013 would each be record-shattering deficits if you transplanted them to as recently as 10 years ago.

What this means in practical terms is that although your deficit may be decreasing a little bit, you are still adding to an already monstrous debt at an extremely high rate. Even if the deficit is reduced to the sort of ballpark in your graph, this is the shape of the debt - up and up and up with no end in sight. Infinitely increasing debt can only end in one way - bankruptcy. That is the fate that awaits the U.S. federal government if the budget is never balanced.



Here's another chart:

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