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  • U.S. Debt Hits $16 Trillion

    Today, the U.S. debt clock hit $16 trillion. Compare that to the end of 2008, just days before President Obama officially took office, when the total federal debt was short of $10 trillion. That’s a 60 percent increase in the federal debt in less than 4 years! Now more than ever, Congress should get to work to rein in out-of-control spending and debt. The economic health of the American nation is at stake.

    Each American’s share of the federal debt rises to $37,437. That represents nearly three-quarters of the income of the average American household earning $50,964 in 2012. And these levels are projected to grow even further, to the point where each American’s share of the federal debt will surpass the staggering $100,000 mark in less than 20 years. Current and future generations of taxpayers are on the hook for increasing levels of debt as Washington continues on its spending spree.

    The nation will soon surpass the next major debt threshold. When the federal debt reaches $16.394, the U.S. will once again reach its statutory debt limit—which Congress will need to address. The “Budget Control” Act (BCA), a result of the contentious 2011 debt ceiling debate, increased the debt limit by $2.1 trillion in three installments:

    1. Immediately after passage of the bill, the debt limit increased by $400 billion from $14.294.
    2. The second increase of $500 billion came in September for a total limit of $15.194 trillion.
    3. The latest and biggest installment to the current limit came in January, increasing the debt limit by $1.2 trillion.

    However, the act failed to actually control the budget, which is only possible by reining in the key driver of spending and debt: entitlement spending. Thus, government spending and debt keeps rising, pushing up against the debt limit again, and soon. By some estimates, the U.S. may hit the debt ceiling as soon as November.

    According to the latest Congressional Budget Office (CBO) report, the budget deficit is projected to cross the $1 trillion mark this year for the fourth straight time. As Heritage budget fellow, Patrick Louis Knudsen, explains, the future outlook is just as dire:

    Beyond the immediate, the outlook remains threatening. Assuming current policies, CBO projects that spending will continue its record-setting climb, reaching $6 trillion—or 24.1 percent of GDP—by 2022. That spending—driven mainly by the three major entitlements: Medicare, Medicaid, and Social Security—will outpace tax revenue, resulting in deficits that never fall below $800 billion throughout the decade.

    Congress should rein in these out-of-control spending levels before the federal debt reaches economically damaging levels. Countries like Greece and Italy demonstrate the economic pains that result from procrastinating on solving a nation’s major spending and debt challenges. Only Congress can decide whether to make the prudent and intentional decisions to ward off a fiscal crisis, or whether to stand idle until forced to act by unnecessarily painful events that could have been avoided.

    Posted in Featured [slideshow_deploy]

    14 Responses to U.S. Debt Hits $16 Trillion

    1. Bobbie says:

      Here's what the president said in promise and here's what he does to make sure promises won't keep and his unwillingness to make them sound and for added effect his vague talk is enough to call himself the victim. Americans want strong leadership with respect from her leaders where these leaders lie, cheat and steal. US! America is ruined under leadership that works to fail with and without transparency and won't face us with their truth or stand to be corrected. Way beneath American expectations. Democrats personally attack every American in every (government recognized) class one way or another!! Democrats do not represent America anymore. They represent human weakness and provoke it in their many attacks.
      It's a threat to hear the president suggest he's going to make sure "we're on the right path?" was the "we" personally insulting the path we choose on our own or America's path as a whole? Democrats who talk without substance, say America is and isn't better off but what Americans are they talking about? The government sector, government dependents and everywhere there are union ties? The good of America is not better off! The democratic obsession for government control and expansion is proof!

    2. David says:

      When will someone reign in accountability? I do not believe that the rest of the world will tolerate this kind of accounting. The world reserve currency is going to be challenged because of these kinds of decision making. There has to be adherence to law- an unlimited credit card is not law, it is ludicris.

    3. steve carson says:

      More whistling past the graveyard – does anyone seriously think the debt problem can be solved? Read on article @ thetrumpet.com by Robert Morley– (7) reasons this election doesn't matter. It hurts, but it's the truth!

    4. Robert M. Clark says:

      $16,000,000,000,000 = $186,000/sec X 2.7 years

    5. Bobbie says:

      The president wants to make history and his total defiance of this great country is his history carved in stone!!

    6. Phil Carne says:

      "CBO projects that spending will continue its record-setting climb, reaching $6 trillion—or 24.1 percent of GDP—by 2022. That spending—driven mainly by the three major entitlements: Medicare, Medicaid, and Social Security." What are they talking about, I have paid into Social Security and Medicare for over 40 years. Where does the CBO get off referring to them as entitlements? If you want to talk about entitlements, talk about the ridiculous pensions and medical coverages afforded our government employees. Has our government EVER released figures as to that annual cost? The answer is no. Our elected representatives all get caught up in their own self-importance and start thinking that they are GIVING us what is really ours to begin with.

      • Stirling says:

        Because your "paid into" it, you are "Entitled" to the benefits. But since our government has already spent the money you paid (rather then putting it into a lock box and not touching it) it's now a liability on the government's balance sheet. Some would say it's a legal ponzi scheme government created, but can't fulfill.

    7. James says:

      America needs a bailout

    8. ravi says:

      if you continue to tax the rich they will move all their business to china and elsewhere
      what will it take for you to learn ppl

    9. Rachel says:

      Obama’s historical, alright…an historical over-spending and abject failure!

    10. Bobbie says:

      The American way that consists of integrity and dignity must be too difficult for the thumbs down crowd. Hopefully they don't live in America.

    11. Margaret says:

      Along with reigning in spending something Must be done to get rid of the Federal Reserve that is the main reason for this debt.
      All members of Congress except Ron Paul and two others belong to the same organization that backs the Federal Reserve. The public is going to have to work incredibly hard to stop this no matter who is elected.

      Now we now why Ron Paul has been ignored for years and literally kicked out of the running by the GOP this year. He has always called for getting rid of the Federal Reserve. Now because of the circumstances he is calling for an audit of the Federal Reserve. Make sure you contact your representatives and tell them to support this. It is the first step we have in gaining control.

    12. Hunter says:

      I think a big reason we are in so much debt is due to wars. The Iraq war has created 807,288,265,000 billion dollars and is still going up as you read this.

    13. Wayne says:

      It is a certainty that the world will turn their backs on the US buck and gold will soar to over $5000 an oz. Already gold is being hoarded by oil rich nations. A super depression the likes the world has never seen will be our legacy, it is unavoidable.Those hurt the most will be the baby boomers because they are sitting on the cash.

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