Costs from interest on the U.S. debt are poised to outpace both defense and non-defense discretionary spending in the years ahead, The Wall Street Journal reports.
The nation currently must service about $200 billion in debt interest annually, the Journal said, noting ongoing low interest rates. But as those rise, “the interest costs of the U.S. government are set to soar… to nearly $800 billion a year by decade’s end,” according to forecasters at the Congressional Budget Office.
In six years, the Journal added, government interest payments will surpass its entire budget for national defense, the Journal said.
It added of the shift: “By 2025, the White House projects interest costs will be 2.8 percent of GDP. Most economists and budget experts would agree that interest payments at 3 percent of GDP are manageable for an economy. The true cost may be the squeeze to other places the government could be spending a decade from now.”
The current U.S. national debt sits at about $18.1 trillion, according to the U.S. Debt Clock, which calculates the figures on budget items, including revenue, spending and interest.
It is projected to climb to $22.3 trillion by 2020, the New York Post noted, adding that while President Barack Obama touted economic growth in his State of the Union address last month, the CBO says the nation is on an unsustainable path with “unaffordable public programs and crushing debt will condemn us to anemic economic growth.”
Those are some figures.
So the cost of filling the income gap of the last 32 years with debt in order to maintain the facade on our standard of living for 315 million people in order to help 1% of the population amass 45% of the nation’s wealth does have a cost.
Who knew? It must be more liberal lies. It’s time for a tax cut for the 400 richest Americans that have $2.29 trillion in wealth!
Kennedy was a wise man that’s why we take his words to heart.
So the industrial miltary complex will protect us!
Let’s cut welfare you deadbeats before the debt effects our portfolios!