$1.5 Trillion in One Year is a Huge Number
by
Bentoniani
11/05/2009, 3:37 PM #
I understand the historical perspective: right now our debt/GDP is about where it was in 1953, which overall wasn't a bad year for the USA. Next year, though, it will be where it was in 1943. That's terrible. We're not even in a real war right now.
Blame who you like--hell, Reagan tripled the debt (though exceeding the borrowing capacity of the enemy is a better way of winning a war than nuclear exchange; it will be difficult to do this against China if they become hostile since they are currently lending our government $800 billion).
Regardless, we're going to soon see inflation. Or we're going to see very high taxes. We're going to see our power and flexibility diminished greatly as a nation. (Paul Kennedy's The Rise and Fall of Great Powers gives a litany of examples where this has been true. Ditto Manchester's The Last Lion). Maybe some of you don't mind this, but the consequences have usually been worse than you think for those fallen empires.
Is this really the time to start enacting a series of new entitlements? It's a practical cost/benefit question more than an idealogical one, I think.