Hey look at that! All this spending on infrastructure, healthcare, bank bailouts, auto bailouts, transfer payments, when combined with collapsing revenue is absolutely blowing out the federal budget.
The NYT, which has generally been supportive of Obama’s spending measures, takes a cautious look at what this is all going to cost us. And yes, it discovers that we’re borrowing like crazy.
But the article is very cautious with its criticism. It approves of the idea that federal deficit spending is necessary to replace missing private sector demand. And though interest payments on our debt are expected to more than quadruple from $172 billion last year to $806 billion in 2019 (a stat we hadn’t heard before).
However says the author: “Of course, no one is suggesting the United States will have problems paying the interest on its debt.”