Soaring National Debt Remains a Grave Threat

[Valin]

Heritage Foundation:

Alison Acosta Fraser and J.D. Foster, Ph.D.

6/18/13

 

Federal government debt has nearly doubled since President Barack Obama took office and is projected to increase 50 percent over the next decadeand then rise rapidly thereafterunder existing policies.[1] As federal debt has soared, so have concerns about Americas future.

 

Used properly, debt can safely finance private and government investment in productive capital to support economic growth. But too much debt can ruin a family, a business, or a nation.[2]

 

Fiscal Outlook Bleak

 

Some in Congress and the media argue that the recent improvement in the deficit means no more need be done this year to rein in spending. While deficits have improved somewhat due to the fiscal cliff tax increases and discretionary spending cuts from the Budget Control Act, this improvement is transient. By the end of the decade, the deficit will again approach $1 trillion as entitlement spending takes off.

 

Recent progress on the deficit is also woefully inadequate. Debt will continue to soar over the next decade: Debt held by the public will increase from $11 trillion in 2012 to $19 trillion in 2023. Debt subject to the legal debt limitwhich includes debt owed to federal trust funds such as Social Securityswill swell by $9 trillion, reaching $25 trillion after a decade. The result is highly likely to eventually spur exceptionally high interest rates and a slower economy.

 

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More Here The Many Real Dangers of Soaring National Debt