A Legacy of Debt
- The national debt was $5.7 billion in 2000
- The national debt increased by about $5 trillion from 2000 to 2008
- The latest debt is approximately $10.6 trillion
- In 2002, the federal mantra was "deficits don't matter."
- The interest payment on the national debt in FY 2008, was $451 billion
- Now, in additional to the $700 billion bailout, we have a proposed $825 billion stimulus package.
- This will increase the interest payment on the national debt at the same time as the federal revenue from tax collections is decreasing by an estimated $166 billion
- Most economists argue that it is necessary to spend your way out of a recession, thus deficits are okay.
- As the Interest Iceberg is getting bigger and bigger, the federal government is rearranging the chairs and listening to the music and chanting ... "Yes, we can!" But, what can we do? Keep printing money?
- For additional details on America's Total Debt
