Federal debt under Obama has jumped $8 trillion over seven years
A new report by the the Congressional Budget Office makes clear that President Obama will bear a large chunk of culpability when U.S. federal debt tops $30 trillion within the next decade.
Monday’s report by the CBO painted a picture of the U.S. economy careening toward a financial cliff. Analysts pegged Obamacare, other entitlement programs, new federal spending and recent tax cuts as contributors to the nation’s debt crisis.
“Beyond the 10-year period, if current laws remained in place, the pressures that had contributed to rising deficits during the baseline period would accelerate and push debt up even more sharply. Three decades from now, for instance, debt held by the public is projected to equal 155 percent of GDP, a higher percentage than any previously recorded in the United States,” the analysts concluded, the Washington Times reported Tuesday.
Obama, who has seen the U.S. debt balloon more than $8 trillion during his tenure, was aided by lawmakers last year who passed a budget resolution to balance the debt by 2024 and then opted not to pursue entitlement reform. The CBO said Congress added 750 billion to the debt over the next 10 years while vowing to save $5.8 trillion.
Federal spending will send U.S. debt soaring in the decades ahead (Graph: The Heritage Foundation)
CNS News broke down federal spending under Obama on Tuesday and concluded it was equal to $70,612.91 in net federal borrowing for each of the 117,480,000 households the Census Bureau said were in the U.S. as of September 2015.
“In the 15 years from the beginning of Bush’s first term to the end of Obama’s seventh year in office, the federal debt increased $13,213,630,160,947.51,” the website reported.
Analysts at CBO added that rising interest rates over the next decade will be a financial back-breaker.
“Because of rising interest rates and growing federal debt held by the public, the government’s interest payments on that debt are projected to rise sharply over the next 10 years – more than tripling in nominal terms and more than doubling as a percentage of GDP, from 1.4 percent to 3.0 percent. … As interest rates rise, the government’s cost of financing its debt will climb – especially if that debt continues to mount, as it does in CBO’s projections.”
“This has always been the biggest problem with debt and deficits – not what’s likely to happen this year or next, but the risks it holds further down the road,” responded Reason magazine on Monday. “While it’s in some ways understandable that politicians have focused less attention on debt and deficits recently, it’s also worrisome, for it shows how poor our political system is at managing predictable but long-term problems like this.”
All U.S. tax revenue is expected to be spent on health care, Social Security, and net interest on the debt by 2033 (Graph: The Heritage Foundation)