The federal debt this year will be double what it was before the financial crisis, Congress’ official budget scorekeeper projected Wednesday morning.
The debt is on pace to reach 74 percent of the country’s economic output by the end of the year, double what it was in 2007 and the highest percentage since 1950, according to the Congressional Budget Office.
Remember: Bush’s ill-advised bailouts have been largely repaid. They were a bad idea not because of the loss of money to the Treasury but because of the moral hazard they created: an incentive for banks to take unsustainable risks into the foreseeable future with no fear of real adverse consequences.
The doubling of the debt is mostly due to Obama’s explosion in spending, starting with the disastrous Keynesian stimulus, and then using that budget as a baseline for future budgets.
In four years, Obama ran up almost $5 trillion in debt — an amount it took the spendthrift Bush eight years to amass, and he’s not done. Things that can’t go on forever, won’t.
Just another reminder that we are headed for disaster. And we don’t have a strategy for dealing with it. Happy Friday!