Debt to equal 62% of GDP by year’s end

This is a major problem.

The national debt will reach 62 percent of gross domestic product (GDP) by the end of this year, the nonpartisan Congressional Budget Office (CBO) said Wednesday.

The budget office said the debt will reach its highest percentage of GDP since the end of World War II. The jump is driven by lower tax revenues and higher federal spending in the recent recession.

And while the national debt would stabilize at 67 percent of GDP over the next decade if current law were maintained, extending tax cuts enacted during the administration of President George W. Bush and keeping growth in appropriations in line with inflation would mean that the debt would reach almost 90 percent of GDP by 2020.

By contrast, GDP has averaged “a little above” 36 percent per year over the past 40 years. (Source: The Hill)

That’s what trying to spend your way out of a recession via stimulus & takeovers of industries will get you.

Now what is going to be done to fix it?

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