Gross US debt is projected to reach 90% of gross domestic product this year.
This is the level at which economic growth slows markedly; obviously, this isn't needed at a time when our economy is not faring well.
The gross debt is all the money that the federal government owes everyone.
The public debt is the measure that the CBO uses to gauge the economy. However, even the public debt (a lower number) is expected to hit 90% by 2020 due to health care reform costs.
And yet--YET--Congress continues to spend.
Current legislation (over $150 billion) includes $40 billion to extend unemployment yet again, $24 billion to save state Medicaid programs (I thought that the federal government had all these medical programs all worked out ?!?), and $2.5 billion to increase welfare.
House Speaker Pelosi promised to abide by the PAYGO rules when she took over. As of now, her Congress has spent about a trillion dollars more than the revenues it receives.
And now the chickens are coming home to roost.
An study after study has shown, the longer you extend unemployment benefits the longer people remain unemployed. No reason to take that just "ok" job if you have benefits that may allow you to hold out for that great one. Most people find a job, or more accurately, accept a job just before unemployment benefits run out.
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