As noted earlier, the Government must borrow from the public to finance any gaps between expenditures and
revenues. Increased borrowing leads to higher debt service (net interest) which in turn can make it more difficult to
balance expenditures and revenues in the future. Chart J shows that by 2030, public debt is projected to rise to 68
percent of GDP, surpassing the non-wartime peak of 49 percent in 1993. By 2040, public debt is projected to be 128
percent of GDP, well above the
World War II peak of 109 percent,
and by 2080, debt is projected to
approach 600 percent of GDP.
At some point before the debt
reaches such unprecedented levels,
the world's financial markets
would likely cease lending to the
United States. Although the
precise point at which this would
occur is unknown, these projected
debt levels cannot be sustained
indefinitely. Many economists
believe that persistent debt / GDP
levels over 100% are unhealthy.
The U.S. is projected to surpass
that mark within the next 30 years,
with the debt/GDP ratio at that
point on a continually and dramatically rising trajectory (more than 10 percentage points per decade through 2080).
Avoiding the catastrophic consequences of this fiscal path will require action to bring program expenditures in line
with available resources. How soon those actions are taken will greatly influence their ultimate impact on the
I wish the chart showed up but pretty sovering facts here...hope we as a country are listen to what they are saying...