A Bleak Picture of Government Debt. Thomas Sowell. RCP. The Democrats out-of-control spending is causing the national debt to sky rocket. And here are the Democrats setting the stage to feast on the taxpayers.
Face and body of a mosquito magnified 50x with the ProScope HR hand-held camera microscope.
Mosquito Mouth and Eyes 50x
July 10, 2009
Sowell points out the depravity of the situation. Something the average person can understand.
The CBO report points out that the national debt, which was 36 percent of the Gross Domestic Product three years ago, is now projected to be 62 percent of GDP at the end of fiscal year 2010– and rising in future years.
Tracing the history of the national debt back to the beginning of the country, the CBO finds that the national debt did not exceed 50 percent of GDP, even when the country was fighting the Civil War, the First World War or any other war except World War II. Moreover, a graph in the CBO report shows the national debt going down sharply after World War II, as the nation began paying off its wartime when the war was over.
By contrast, our current national debt is still going up and may end up in “unfamiliar territory,” according to the CBO, reaching “unsustainable levels.”
As the Congressional Budget Office puts it, if the national debt continues to grow out of control, a “growing portion of people’s savings would go to purchase government debt rather than toward investments in productive capital goods such as factories and computers; that ‘crowding out’ of investment would lead to lower output and incomes than would otherwise occur.”
But the “leaders” in D.C. already comprehend this, right?