Our Debt has Reached 100% of GDP
Slow clap for the Obama Administration. Thanks to the trillions he’s added to our national debt through failed policies such as the stimulus and the brand new massive entitlement program that is Obamacare, we now owe more (i.e., borrowed) more than we are producing as a country.
That’s right, we are now in the same indebted class as Italy and Belgium. Way to go. We have not had such high debt since just after World War II. The wars we are engaged in now (Afghanistan, Iraq, and Libya) are not the same as WWII – that war consumed the entire world and America’s entire economy was mobilized for war. Military spending is not the primary driver of our debt over the past decade; it is the out of control entitlement spending and the constantly created new programs and agencies as well as yearly increased budgets that have ballooned our debt to this level.
The debt limit deal that was just passed was officially the straw that broke the camel’s back. It was the $400 billion increase that put our debt-to-GDP ratio at 100%. The credit rating agency Moody’s said that our government must get the ratio down to 73% by 2015 to keep our AAA credit rating.
The debt deal reached a few days ago will not do that. It increases our debt, instead of decreasing it. Cut, Cap, and Balance, the Ryan Budget or Heritage’s Saving the American Dream would have began paying down our debt, but apparently doing what is necessary to keep our AAA rating is too “extreme.”