The Obama administration adamantly denies how much their policies have soared the deficit. Here are the numbers broken down to prove they are adding to the deficit every minute.
1. Myth: The US debt is not very high
Reality: The current National Debt stands at $13.6 Trillion Dollars.
2. Myth: Government spending has not risen under Obama
Reality: Obama and the Democrats spent 21.4% in the two years he has been President.
3. Myth: Obama and the Democrats do not have a spending problem
Reality: If Obama continues his spending pattern, the projected federal debt will reach over $26 trillion.
4. Myth: There have been higher deficits besides the one under Obama
Reality: In Fiscal Year 2009, the government spent the highest amount in US History: $1.42 Trillion. In Fiscal Year 2010, the government spent the Second Highest in US History, $1.29 Trillion.
5. Myth: The money the government spends for it’s projects is money that is paid for. For example, Healthcare.
Reality: 41 cents of every single dollar government spends is borrowed. The biggest owner is China, with $868.4 billion in ownership.
# Myth: The US deficit will not affect GDP.
Reality: In 2012, GDP will be 100% of US deficit.
# Myth: The deficit will not put a burden on future generations.
Reality: The debt for every taxpayer is currently at just over $43,000. That’s more than what the average person makes in a year in a dwindling income economy. Economists believe the resolution to this problem would be Americans staying in the work force longer which the recession has made more difficult. Older workers typically fare better than younger workers but this time around they have been hit equally as hard.
Young people ages 16-24 have the highest unemployment rate topping at almost 20%.