Thu Feb 11, 2021, 03:05 PM

underpants (170,747 posts)

U.S. federal debt to exceed size of economy even before Biden stimulus is approved, CBO says

Source: Washington Post

The federal government’s total debt is expected to exceed the size of the American economy this year, a figure that does not take into account President Biden’s proposed $1.9 trillion stimulus package, the nonpartisan Congressional Budget Office said Thursday.
Still, the CBO said that the annual federal deficit -- the difference between what the government spends and what it collects in tax revenue every year -- is set to decline from the year before, when the deficit surged due to the historic emergency measures authorized to support an economy pummeled by the coronavirus pandemic.

In 2021, America’s federal debt will reach about 102 percent of its Gross Domestic Product, a slight increase from the year before. Even without additional spending or tax cuts, that number is expected to grow to 107 percent of GDP by 2031 -- which would be an all-time high in American history, the CBO said.

Read more: https://www.washingtonpost.com/us-policy/2021/02/11/cbo-deficit-debt-stimulus/

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6 replies	Author	Time	Post
U.S. federal debt to exceed size of economy even before Biden stimulus is approved, CBO says (Original post)	underpants	Feb 2021	OP
Nice that the CBO says this, but they should have stated that the deficits from prior years	SWBTATTReg	Feb 2021	#1
GOP is very concerned	IronLionZion	Feb 2021	#2
Such sloppy writing	PSPS	Feb 2021	#3
I spent many years of my adult life with my total debt exceeding the size of my economy every year.	generalbetrayus	Feb 2021	#4
Reverse Trump tax reduction for rich, take the profits the rich made on that tax break,	NCjack	Feb 2021	#5
It already DOES	sandensea	Feb 2021	#6

Response to underpants (Original post)

Thu Feb 11, 2021, 03:10 PM

SWBTATTReg (18,278 posts)

1. Nice that the CBO says this, but they should have stated that the deficits from prior years

were responsible for the damage, not Biden.

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Response to underpants (Original post)

Thu Feb 11, 2021, 03:25 PM

IronLionZion (39,572 posts)

2. GOP is very concerned

they might need to pass more tax cuts and start more wars. Good thing Trump's $2 Trillion tax cuts have stimulated our economy so much it trickled down to ordinary workers through stock buybacks.

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Response to underpants (Original post)

Thu Feb 11, 2021, 03:31 PM

PSPS (12,491 posts)

3. Such sloppy writing

Federal deficit is not the same as federal debt.

The federal debt would have been paid off in Clinton's term if the republicans didn't block it from happening. If one is concerned about the federal debt, there's $23 trillion in un-taxed lucre hidden offshore by republican benefactors. You could also look at making the billionaires pay some taxes for a change.

The federal deficit is large now because, um, we're at war. We're in the middle of a pandemic. Perhaps you've heard of it. It's been in the news lately!!111!! The deficit-as-percentage-of-GDP is high but still less than half of what it was during WW II.

Oh, well. The Washington Post has space to fill. Have to find something to write about. Accurate detail and analysis isn't important, just the word/line count.

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Response to underpants (Original post)

Thu Feb 11, 2021, 03:39 PM

generalbetrayus (409 posts)

4. I spent many years of my adult life with my total debt exceeding the size of my economy every year.

I bought a house worth more than my annual income. I'll bet a lot of you did, too.

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Response to underpants (Original post)

Thu Feb 11, 2021, 04:59 PM

NCjack (9,765 posts)

5. Reverse Trump tax reduction for rich, take the profits the rich made on that tax break,

tax wealth, increase income tax for wealthy, tax or seize the earnings companies are parking in foreign banks to avoid taxes, and add a stock and options trading tax of 1 penny/unit. Suddenly, our situation will look much better, faster.

Time to pay American workers and put the rich back to work (and out of the country clubs and golf courses),

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Response to underpants (Original post)

Thu Feb 11, 2021, 06:50 PM

sandensea (16,729 posts)

6. It already DOES

The Federal Debt now stands at $27.85 trillion.

GDP for 2020 was $20.93 trillion. That's 133% of GDP.

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