A Time for Political Courage: The Federal Debt Crisis in 2014

Like many Americans, Uncle Sam has a bad habit of spending more than he earns. The federal government’s total expenditures exceeded its total revenues in 36 of the last 40 years. In 2012, federal government revenues were 16% of gross domestic product (GDP) and expenditures were 23%, leaving a deficit equal to 7% of GDP or $1.1billion. The national debt is a large and growing problem. Recent budget accords have not solved the debt crisis. Low interest rates worldwide have held the interest burden of the US debt artificially low. Those days are over. In 2012, interest payments represented 6% of federal government outlays; in 2042 they are projected to be more than 30%. Congress must stop the vicious circle of debt and debt service