Does Everyone Know How Much .2 Trillion Is Over the Next Decade?

It seems unlikely that many people, even among the relatively well-educated readers of the New York Times and Washington Post, have much clue as to how much money is at stake in the battle over the debt ceiling. As some points of reference, the government is projected to spend roughly $46 trillion over the next decade. This means that $2.2 trillion in cuts would be around 4.8 percent of projected spending.

However, the impact is likely to be much larger on specific portions of the budget. If Social Security, Medicare, and Medicaid are left off the table, and most of the cuts come from the discretionary portion of the budget (which includes most government investment in infrastructure, education and research), then $2.2 trillion in cuts would come to 15.2 percent of projected spending. There is also the question of the division of the cuts between domestic discretionary spending and military spending. In the extreme case where all the cuts came from the domestic side of the budget, the cuts would be 32.8 percent of projected spending.

Finally, it is worth asking how large these proposed cuts are relative to the size of the economy. GDP is projected to be almost $200 trillion over the next decade. This means that if the government could raise taxes by an amount equal to 1.1 percent of projected income it would raise enough money to the spending cuts being debated by Congress.

New Liberal Diet: Eat More to Lose More Weight, Low-rated comment [Show]

Increase US government spending now!
written by Scott ffolliott, July 28, 2011 7:53 AM

Raising the wages of all Federal Workers, the increase in eligibility for Medicare (better yet Medicare for all) will help move us toward better economic times as we advance our efforts toward economic equality.

Cutting military contractors by returning services provided directly through military personnel will begin the unraveling of the privatization boondoggle that has bleed American workers for forty years or more.

The world of imaginary politics must end.

it is all just posturing
written by Eat the babies, July 28, 2011 8:00 AM

All that any of them are doing is posturing. Sadly, it is only the nutwads in the Tea Party who seem serious about anything. The rest of them just want to when whatever political points they can for election maneuvering. It is gross. (And you better believe I am counting the President in there).

Increase spending?
written by mezurak, July 28, 2011 9:18 AM

Pay fed workers more? Isn't that the equivalent of giving CEOs a raise? It's not as if you have fed workers that actually work. No, they manage contractors who do the work.

Cut military contractors and make the military do their jobs. Have you forgotten about various arms reduction treaties that also cut force levels? Why do you think contractors do jobs like cutting grass, feeding the troops, or hundreds of other military related jobs that free end strength for front line use?

And remember when the tea party started the cry was, Keep Government out of our Medicare and SS? Yet you would blame them for these outlandish cuts being proposed by old guard politicians like Boehner. There are no tea party members on the various cut the budget committees like Bowles/Simpson that have been behind these schemes.

Quit buying into the politicians Wall Street enrichment plan and open your eyes. The discussion is whether to increase the debt by another 2.5 trillion. The money saved by cuts in existing programs are how they plan to pay for it.

YOU are still paying for their indiscretions.

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It Is All Just a Joke
written by Paul, July 28, 2011 9:21 AM

Future Congresses cannot be bound by whatever the Tea Party clown manage to pass. Apparently, these geniuses missed too many days of school.

Debt is Debt
written by winstongator, July 28, 2011 10:51 AM

Ireland has been sunk by debt accumulated by its banks. A nation's total debt level is more important than whether one sector or another is becoming more or less indebted. So what has happened to the overall level of debt in the US? Ask a conservative and they'll say that it must have spiked recently (since Obama took office). WRONG. It's 200B more than it was in 2008. From 2004-2008 it increased by $15Trillion. That is a 75X difference between Bush's second term and Obama's first.
http://www.federalreserve.gov/...nt/z1.pdf
p67 of the pdf

If you were really concerned about the nation's indebtedness, why were you quiet from 2004-2008? What changed in 2008?

...
written by R. Thomas, July 28, 2011 10:55 AM

I don't know the source of the numbers in this article but some of them make no sense at all. Here is one of them:

"GDP is projected to be almost $200 trillion over the next decade". Using the 2010 GDP of 14.7 Trillion means that the ANNUAL, compound growth rate to reach 200 Trillion in 10 years would be 29.83%. Do you know anyone who is predicting that our GDP growth rate will be nearly 30% a year? That's madness, especially when the 2011 growth rate is closer to 1.8%.

-2

...
written by Dirk van Dijk, July 28, 2011 11:39 AM

Rthomas. the 200 T refers to the cumulative GDP, not the size at the end of the period. With nominal GDP now at $15T, with no increase at all it would total $150T over 10 years, going to a total of $200T does not sound that unreasonable even with anemic real growth and just a touch of inflation.
Winstongator, very good point, and I would point out that it does matter who owns the debt. Debt owed by those who are able to repay it is better than that owed by those that are less likely to. It is better for the Fed'l govt to owe than for individuals to, especially those at the low end of the income scale.

It is better for the Fed'l govt to owe than for individuals to.
written by mezurak, July 28, 2011 12:11 PM

I'll remember that when the IRS calls up asking why I didn't submit my charity payment in April.

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Bureau of Public Debt Figures for winstongator
written by AndrewDover, July 28, 2011 1:21 PM

5,776,091,314,225.33 on 12/31/1999
10,699,804,864,612.13 on 12/31/2008
14,342,830,116,551.28 on 07/26/2011

http://www.treasurydirect.gov/...isto5.htm
or
http://www.treasurydirect.gov/NP/NPGateway

“Thimblerig, the invisible hand, has tricked working people
written by Scott ffolliott, July 28, 2011 4:35 PM

As US of A’s government acquiesces to capital’s neo-liberal ideology it has left workers without work and those working to lose benefit and take other pay cuts, while the government makes money available to capital to buy back shares and use cheap sweatshop workers in China, Southeast Asia or wherever low wages and nature exploitation are favorable to capital.

Democrats and Republicans are working hand in glove together to undo all social democratic laws that protect the working class. The President of the United States cut the wages of federal workers as the Governors of the states sack workers to “balance” their budgets. the US of A, while the people are distracted by the illusions of “democracy”

“Thimblerig, the invisible hand, has tricked working people and economists alike.”

What changed in 2008?
written by Wisdom Seeker, July 29, 2011 12:41 AM

@Winstongator: "If you were really concerned about the nation's indebtedness, why were you quiet from 2004-2008? What changed in 2008?"

The sleeping populist giant woke up. In both parties. In my case it was when TARP was passed despite huge popular opposition, despite being a complete nonsolution to the alleged crisis. Right now I don't care which party is in power, I don't see either one protecting the national interest. The Dems-in-power can't break the print-and-spend mindset even in a recovery. The Repubs-formerly-in-power are tainted by the huge debt they racked up while they were in charge.

Neither party represents the national interest right now, and I hope the incumbents realize their careers are about over, and it's time to do the right thing for America. They can either join the side of the people, or be swept away. Unfortunately it appears that Congresspeople are too corrupt, so far gone that the more egregious cases keep having to resign in corruption scandals... while former Senators go off to work for Goldman Sachs.

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...
written by FoonTheElder, August 01, 2011 12:50 PM

Move to single payer health care. It would save $1 trillion per year for Americans, just by bringing down the per person cost for health care down to the highest of the other developed countries. ($3200 per year x 310m)

We're already over $8,000 per year in health care cost for every person in the U.S.

Does Everyone Know How Much $2.2 Trillion Is Over the Next Decade?

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