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Why Deficit Spending is Bad
Apr. 29th, 2009 12:00 pmThe national debt is currently over $10 trillion and rising.
This year's deficit is currently projected to be $1.7 trillion, which was the size of the whole budget in 2001.
The world's GDP is $69.49 trillion.
The implicit assumption that "we can always get more loans" is rapidly becoming false.
This isn't going to be a matter of "our interest payments will go way up" (altho that's certainly true); this will become a matter of "we can't borrow more. It isn't there".
You may now resume making "teabag" jokes.
This year's deficit is currently projected to be $1.7 trillion, which was the size of the whole budget in 2001.
The world's GDP is $69.49 trillion.
The implicit assumption that "we can always get more loans" is rapidly becoming false.
This isn't going to be a matter of "our interest payments will go way up" (altho that's certainly true); this will become a matter of "we can't borrow more. It isn't there".
You may now resume making "teabag" jokes.
