US trillion-dollar deficit and unemployment extension tier 5 for 99ers
28 January, 2011
US trillion-dollar deficit and unemployment extension tier 5 for 99ers. Why government can borrow on everything except for poor unemployed people
The United State of America is on the verge of accruing a national debt of 100% within a decade - if no financial cuts are made soon. If that happens all the economic activity of the country would be equal to its debt and this means not a dollar left for the country at all!
National deficit has reached a record USD1.5 trillion, and cumulative deficits over the next 10 years could run anywhere from USD7 trillion to USD12 trillion.
Congressional Budget Office Director Douglas Elmendorf also added that making budget cuts too deep, too fast could be ‘disruptive’ to the economic recovery at a fragile time.
“The longer that you wait to make those policy changes ... the greater the negative consequences (of the national debt) will be,” he said.
"Spending as a share of our national income is at the highest level in 60 years. Revenue as a share of our national income is at its lowest level in 60 years. No wonder that we are headed for the largest deficit ever," said committee chairman Kent Conrad, D-N.D.
He also made this scary suggestion that if short-term policies are extended, Elmendorf said, the deficit would reach nearly USD12 trillion over the decade, pushing the debt to almost 100 percent of GDP.
Touching upon the deficit in his State of the Union speech 2011, president Obama called for a five-year freeze on non-mandatory domestic spending. This would save an estimated USD400 billion over the decade.