U.S. Debt Passes 100 Percent Of GDP
August 8, 2011 by Special To Personal Liberty
The U.S. debt eclipsed 100 percent of the nation’s gross domestic product (GDP) following the release of Treasury figures.
After several weeks of holding steady, the debt rose $238 billion after President Barack Obama signed the debt-ceiling legislation in an effort to prevent a default, Agence France-Presse reported.
The public debt for the U.S. climbed to $14.58 trillion, passing the $14.53 trillion that represents the size of the nation’s economy in 2010, reported the news agency.
Senate Minority Leader Mitch McConnell (R-Ky.) warned that this would not be the last debate over the debt ceiling, as this issue would remain prevalent until the current Administration is able to curb spending, according to Fox News.
According to AFP, the last time the U.S. debt topped the size of the annual economy was in 1947, but this was almost entirely due to war spending.
The current deficit is partly based on wars in Iraq and Afghanistan, but a significant amount of this also comes from the entitlement programs that are in dire need of fundamental changes to their structure, Fox News reported.