Debt dilemma

posted by
May 31, 2011
Cato
by James A. Dorn  
Posted in Commentary

"Now that the U.S. Federal Government has reached its legal debt limit of $14.3 trillion, stark choices lie ahead. Current spending growth is unsustainable. Indeed, the Government Accountability Office estimates entitlement spending on Social Security, Medicare and Medicaid alone will amount to more than 20 percent of GDP by 2080, if current policies are unchanged. That level of spending would absorb 100 percent of federal revenues, assuming the federal tax share of GDP increased from its average level of 18 percent to 20 percent." (05/27/11)

http://www.cato.org/pub_display.php?pub_id=13143  

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