Monday, February 25, 2013

How big is the national debt?  Answer: Larger than you think

Robert Samuelson crunches the numbers with "The True National Debt":
So the most expansive measure of national debt ($31 trillion) is nearly three times the conventional estimate ($11 trillion). Almost all the items on my list -- whether Treasury bonds or bank deposits -- are ultimately legal obligations of the federal government. Note: They differ from Social Security and Medicare benefits, which are often called "debts." They aren't. Congress can alter the benefits anytime it chooses.
So we're already in a deep, deep hole of debt even without counting entitlement spending which will swallow the federal government whole over the next two decades.  But by all means, let's keep up the hysterics over slicing 2% off the bloated federal budget.

Extra - Zero Hedge: "Behold the horror of context."  Oh no!


GOP logic said...

"The sequester cuts are meaningless, puny, an insignificant trifle... and we need to ensure that Obama gets the blame for them."

That's some A+ messaging going on there.

Eric said...

Then there's Obama and the Senate Democrats who are telling us the sequester is so terrible, we must do nothing.

Hey, when can we expect that budget?