Washington, Jan 10 (): According to a recent estimate, the soaring U.S debt is now as big as the entire U.S economy. The amount outstanding payable to its creditors, combined with IOUs to government, retirement and other programs, now stands at $15.23 trillion.
The government estimated the value of goods and services produced by the U.S.economy in a year at $15.17 trillion as of September, 2011 and private projections indicated the economy grew to about $15.3 trillion by December, which the debt likely will surpass this month.
“The 100% mark means that your entire debt is as big as everything you’re producing in your country,” says Steve Bell of the Bipartisan Policy Center, which has proposed cutting nearly $6 trillion in red ink over 10 years. “Clearly, that can’t continue.”
“It is like watching a horror movie,” Sen. Marco Rubio, R-Fla., told in Jacksonville on Monday. “You know those movies where the people in the audience are screaming, ‘Don’t go in that door!’ because you know the killer is there? Well, it is the same thing with this debt. We know how this ends.”
It is remembered that the 100 percent debt-to-GDP sank the European nation,Greece. “The Greek economy is broken. The U.S.economy is not broken,” said former Congressional Budget Office Director Doug Holtz-Eakin, head of American Action Network.
“But if we were so foolish to do things as we are now,” the U.S.economy will break, Holtz-Eakin warned, noting that the debt is equal to the median income of Americans 300 million times over. “Every American (would have) to give up a year of income to pay it off,” he said of the debt.
President Obama’s 2012 budget shows the debt soaring past $26 trillion a decade from now. Last summer’s deficit reduction deal could reduce that to $24 trillion. A White House official who asked not to be named noted that Obama already has a detailed plan for a balanced approach to cutting $4 trillion in federal red ink.
However, the Brookings Institution’s economist William Gale is among economists who say a better measure of the national debt is how much the government owes creditors, excluding the $4.7 trillion owed to future Social Security recipients and other government beneficiaries, USA Today said. Under this scenario, the debt is about $10.5 trillion or about 70 percent the size of the U.S. economy.