At 10 per cent of the gross domestic product, the 2009 deficit is the highest since the end of World War II, when it was 21.5 per cent. At that level, it already has become a bigger economic and a political issue than any time since the late 1980s.
Investors who are essential to financing the debt, including China and other foreign interests, are eager for signs that the government will eventually regain control over its budgets.
And polls show that Americans are increasingly worried as well, raising concerns about Mr. Obama’s ambitious domestic agenda, including his signature health care overhaul, that Republicans are stoking. At the same time, many Americans are demanding further help, confronting forecasts that job losses will not peak until mid-2010.
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