Obama and the Democrats: Piling Up the Debt
The economic meltdown in Greece gives us a glimpse of our future if we don't stop the federal spending binge we've been on since Obama took office. Republican victories in last month's elections are a good first step, but opposition to cutting government spending by the Democrats, the media, and special interest groups (i.e. unions and trial lawyers) will be intense and sustained. Republicans should look to New Jersey Governor Chris Christie for inspiration and practical advice on how to fight the coming budget battles. In the mean time, maybe these statistics will help focus the minds of our legislators:
- Total public debt was $7.5 trillion at the start of 2009.
- In just the next 10 years it will double to $15 trillion.
- Structural debt from entitlements (Social Security, Medicaid, and Medicare) will continue to rise sharply until it eventually crowds out all other national expenses.
- A tidal wave of retiring Baby Boomers is coming. Just one-third of them have prepared themselves financially for retirement.
- The sum total of unfunded liabilities for Social Security, Medicare, and Medicaid will force the government to borrow massive amounts of money: some 320 percent of GDP by 2050.
- Unless we do something about it, by 2083, total debt will reach 750 percent of GDP. That's trillions and trillions of additional borrowed dollars that have to be paid back.
- As of now, every man, woman, every child – every newborn baby – in the U.S. is on the hook for $43,000 of this debt.