Stimulus Bill National Debt – The new Obama stimulus bill will increase the national debt by an additional $800 billion, boosting the total federal debt above $12 trillion dollars.
One thing about the president’s $790 billion stimulus package is certain: It will jack up the federal debt.
Whether or not it succeeds in producing jobs and taming the recession, tomorrow’s taxpayers will end up footing the bill.
Forecasters expect the 2009 deficit — for the budget year that began last Oct 1 — to hit $1.6 trillion including new stimulus and bank-bailout spending. That’s about three times last year’s shortfall.
The torrents of red ink are being fed by rising federal spending and falling tax revenues from hard-hit businesses and individuals.
The national debt — the sum of all annual budget deficits — stands at $10.7 trillion. Or about $36,000 for every man, woman and child in the U.S.
Interest payments alone on the national debt will near $500 billion this year. It’s already the fourth-largest federal expenditure, after Medicare-Medicaid, Social Security and defense.
This will affect us all directly for years, as well as our children and possibly grandchildren, in higher taxes and probably reduced government services.
It will also force continued federal government borrowing, increasingly from China, Japan, Britain, Saudi Arabia and other foreign creditors.
I don’t think anyone in Washington understands that increasing the national debt removes an equal amount of investment capital from total funds available to lend worldwide.
The U.S. national debt is like a sucking, swirling black hole gobbling up working capital and dragging the entire world into an enormous credit trap with no way out except implosion.
And that’s the latest news on the stimulus bill national debt impact.
Tags: national debt level, obama stimulus, stimulus, stimulus bill national debt
April 30th, 2009 at 7:13 pm
Great writing and suggestions. Thank you!