National Debt Threatens to Surpass GDP by 2039

National Debt Threatens to Surpass GDP by 2039

According to a recent Christian Science Monitor article, the United States is rapidly approaching the day when its national debt will surpass its Gross Domestic Product (GDP). The Monitor explains, “Public debt is on track to grow to an amount equal to 78 percent of one year’s gross domestic product (GDP) by 2024 and more than 100 percent of GDP by 2039. That compares with its level of about 74 percent of GDP today.”

What does this mean? It means that spending will likely exceed revenue growth at a pace that could lead to significant economic destabilization. Citing illuminating data from the CBO report, the Monitor notes, “tax revenue will also be rising, but not as much as spending. Revenue would equal 19.5 percent of GDP under the extended-baseline forecast, compared with 17.5 percent of GDP in the past four decades. That rise in revenue would be fueled partly by people migrating into higher tax brackets and also by features of President Obama’s Affordable Care Act (such as an excise tax on some high-premium health insurance plans).” Simply put, Americans can expect that, with growing government spending, there will be increases in taxes. And, as expected, a significant portion of the taxes will likely be generated by Obamacare.

 

Click here to read the full Christian Science Monitor article. 

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