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National Debt is an Unpopular Topic Among Candidates

Although both major presidential candidates are aware of the potential disaster, neither has spoken much about it. Perhaps that is because the problem is so huge and the numbers so staggering - trillions of dollars affecting millions of people.

Over the next 75 years, to meet its promises, the government needs to find an additional $3.7 trillion for Social Security and a whopping $28 trillion for Medicare, according to estimates by the Government Accountability Office.

Today, the total U.S. economy is about $11.7 trillion annually.

"One has to recognize reality," said David M. Walker, the U.S. comptroller general and head of the GAO. "Due to known demographic trends, rising health care costs and a variety of other factors, we face a large and growing structural deficit."

"Current Fiscal Policy is Unsustainable," says a presentation prepared by the GAO, the non-partisan investigative arm of Congress. (Until recently it was known as the Government Accounting Office.)

According to GAO projections, for the federal government to balance its budget in 2040, it will either have to cut total spending by 60% or raise taxes to 2.5 times today's levels.

Posted by tim at October 12, 2004 8:28 AM

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