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  • GAO: Public Debt Will Surpass WWII Highs Within 10 Years

    The Government Accountability Office (GAO) has released yet another dire warning about the nation’s long-term fiscal condition. The report—an annual update of long-term budget simulations—projects that debt held by the public will likely exceed the historical high within 10 years.

    What was once viewed by many as a distant budget imbalance has suddenly become a near-term crisis. Unfortunately, simply ignoring the issue—the action of choice for most lawmakers to date—exacerbates the problem. The GAO notes the urgency of the situation:

    With the passage of time the window to address the long-term challenge narrows and the magnitude of the required changes grows. The federal government faces long-term fiscal pressures that predate the economic downturn and are driven on the spending side largely by rising health care costs and an aging population. GAO’s simulations show continually increasing levels of debt that are unsustainable over the long-term. Under [one] simulation, debt held by the public as a share of GDP would exceed the historical high reached in the aftermath of World War II by 2020.

    However, this grim fiscal future is not inevitable. Recently, The Heritage Foundation released Solutions for America, a report addressing conservative solutions for 23 discrete policy areas, including 128 detailed policy solutions. Included in the report are five specific ideas to rein in out-of-control entitlement spending and return the nation to a sustainable fiscal course. The recommendations include:

    • Placing entitlements on long-term budgets rather than allowing them to increase indefinitely on auto-pilot,
    • Transforming Medicare into a defined contribution system,
    • Transforming Medicaid from an open-ended entitlement to an insurance-based model of private coverage,
    • Creating a system of voluntary personal accounts within Social Security and transforming the remainder of Social Security to “real insurance,” focusing benefits on those who really need them, and
    • Encouraging increased personal retirement savings through auto-enrollment in Individual Retirement Accounts.

    The nation’s fiscal situation is deteriorating by the day, and previous attempts to “bend the cost curve” have clearly failed. Common sense solutions do exist. It’s time to implement real reform.

    Posted in Economics [slideshow_deploy]

    2 Responses to GAO: Public Debt Will Surpass WWII Highs Within 10 Years

    1. George Colgrove, VA says:

      Let's look at real dollars not a % of GDP. I think it would be more shocking. I would much rather pay the interest on the 50% we had before WWII than the 50% we will have soon. The interest we are paying now could nearly fund the DoD budget the HF recommends.

    2. Dr dbiggs,CA says:

      Pres OBOZO: "Tea Bagger-in-Chief"

      You Can LIE but can you READ?

      Invasion by illegal ie "Criminal Aliens"

      Obviously you have never read the United States Constitution or

      else feel that in your ivory tower and wealth that it does not apply to you!!

      I feel you need to read the following and act according to the peoples wish

      not your wishes or special interests wish list!

      There are three references to the words "invasions," "invaded," and

      "invasion" in our U.S. Constitution:

      Article I, Section 8: "The Congress shall have Power To Provide for calling

      forth the Militia to execute Laws of the Union, suppress

      insurrections and repel Invasions."

      Article I, Section 10:"No State shall, without the Consent of Congress, lay any

      Duty of Tonnage, keep Troops, or Ships of War in time

      of Peace, enter into any Agreement or Compact with

      another State, or with a foreign Power, or engage in War,

      unless actually invaded, or in such imminent Danger as

      will not admit of delay."

      Article IV, Section 4:"The United States shall guarantee to every State in the

      Union as Republican Form of Government, and shall

      protect each of them against invasion, and on

      Application of the Legislature, of of the Executive (when

      the Legislative cannot be convened) against domestic

      Violence."

      Your Oath of Office and sworn duties as referenced mean you must Act and

      put a Stop to the Invasion of all the Illegal immigrants we are experiencing.

      Our U.S. Constitution mandates that invasions shall be repelled by Congress.

      and that means the persons in the House of Representatives and the U.S.

      Senate. Our nation's sovereignty must be protected.

      How can you even stand in front of a mirror and even look yourself in the eyes

      knowing you are a "Bought & Paid Hoe" for special interests and the

      Democratic Party Hacks? Tell me I am wrong, please because I fear for the

      future of our country as you certainly don't care about the people or our

      country!!

      You go to the SAME PLACE for LYING as you do for STEALING!!

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