CBO reports on 2011 U.S. Debt

by Laura Ehrenberg-Chesler on January 28, 2011

in Debt,Fiscal Policy

From time to time we have blogged about the ongoing level of debt we are incurring in the U.S.,  and its impact on the economy in the future.  The Congressional Budget Office just released its most recent report indicating that for 2011 we will rack up an additional $1.5 trillion in debt.

According the CBO report, two years ago our total debt was less than $6 trillion, which was about 40% of GDP.  Today it is upwards of $9 trillion, and 62% of GDP.

It is increasingly clear that strong action must be taken in order to reduce the country’s debt burden, and reduce the budget deficit.  This may even involve taking a hard look at cuts in  Medicare and Social Security.  And, while this is not a popular stance, our illustrious politicians need to quit worrying about re-election, and begin to make the tough decisions. 

Japan’s debt load is approximately 200% of GDP, the highest in world.  Standard and Poor’s just downgraded their sovereign debt rating.  The American people voted for change in November.  Fiscal responsibility is part of that change.  We should do it sooner than later.

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