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Apr 27
2010
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On America's Rising DebtPosted by: Timothy Whittle in APP Blog |
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The nonpartisan Congressional Budget Office has announced that America’s debt will rise to 90% of national GDP:
President Obama's fiscal 2011 budget will generate nearly $10 trillion in cumulative budget deficits over the next 10 years, $1.2 trillion more than the administration projected, and raise the federal debt to 90 percent of the nation's economic output by 2020.
… The federal public debt, which was $6.3 trillion ($56,000 per household) when Mr. Obama entered office amid an economic crisis, totals $8.2 trillion ($72,000 per household) today, and it's headed toward $20.3 trillion (more than $170,000 per household) in 2020, according to CBO's deficit estimates.
That figure would equal 90 percent of the estimated gross domestic product in 2020, up from 40 percent at the end of fiscal 2008. By comparison, America's debt-to-GDP ratio peaked at 109 percent at the end of World War II, while the ratio for economically troubled Greece hit 115 percent last year.
Things are not looking good for the federal government, as The New York Times pointed out that for the first time, the Social Security system paid more out than it took in:
This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office.
… The problem, he said, is that payments have risen more than expected during the downturn, because jobs disappeared and people applied for benefits sooner than they had planned. At the same time, the program’s revenue has fallen sharply, because there are fewer paychecks to tax.
Analysts have long tried to predict the year when Social Security would pay out more than it took in because they view it as a tipping point — the first step of a long, slow march to insolvency, unless Congress strengthens the program’s finances.
What is America’s problem? Over the last decade, the federal government has not been able to keep spending under control at a reasonable level. The Washington Times explains:
While spending grew just 11 percent faster than inflation during the entire 1990s, it expanded by 62 percent in the 2000s — the largest growth of the federal government over any 10-year period since the 1950s. And only a small fraction of this new spending is a temporary result of the recession. Most of it represents a permanent and accelerating expansion of government…
Budgets are about setting priorities and making trade-offs. It is understandable for a few top priorities to take funding precedence. Yet it is completely unsustainable to provide permanent, massive spending increases…
It’s time for new, responsible leadership that will make the federal government live within its means, just as American citizens try to do.




William Saunders recently wrote a 
I 
Much hype has been made over the newly introduced House bill, the Student Nondiscrimination Act of 2010. We can take a look at the facts behind the bill to try to gain a deeper understanding of it. Implicit in the language of the bill are broad assumptions about the manner in which schools are to handle sexual orientation and gender identity issues.
On February 8, President Obama’s faith-based office narrowly voted to recommend that churches wishing to use federal funds for social services be forced to set up separate non-profit corporations to handle those funds.
Conservatives, who argue that their institutions can work with government to achieve results desired by all, can point to a newly released
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