As if the U.S. Government debt wasn't high already, we have just jumped from the frying pan into the fire.
Federal spending grew 25 percent in 2008 according to a joint White House-Treasury Department report released this week. Taxpayers will end up more than $1 trillion this fiscal year alone (2009) in the hole thanks to this steep rise, which is accounted for mostly by significant growth in veterans' benefits and tax revenues that have remained static due to a yearlong recession. The scary part is that this trillion-dollar red mark comes before Uncle Sam's bailout escapades are taken into account. President-elect Obama's plan for another stimulus package early next year will only increase the federal deficit, which went from $162.8 billion in fiscal 2008 to $454.8 billion just one year later. But never fear, members of Congress are set to receive a pay raise of $4,700 a year beginning in January.
This "damn-the-torpedoes" strategy of not worrying about the deficit during times of economic strain will one day sink the American economy. This year, the federal government will spend $450 billion on just the interest on the national debt. Again, that's interest on last year's total federal debt. That interest payment ranks fourth in total government outlays, behind Medicare-Medicaid, Social Security and defense. In 30 years, the government's current tax revenue will cover only half of what it owes. We're soon going to be looking for change, all right. Pocket change!
