Thursday, June 7, 2012

U.S. debt will double


WASHINGTON ,Debt United States ( U.S. ) also accumulate , and will double the gross domestic product ( GDP ) , in 25 years.

Similarly, the U.S. Congressional Budget Office report ( CBO ) , Tuesday ( 06/05/2012 ) in Washington . The report contains an overview of the financial future of the U.S. states , as reported by Agence France Presse ( AFP ) .

With current policy , where the tax rate is not overhauled and maintained low , while the expenditure is not reduced , then the portion of the country 's national debt will go up to 70 percent at the end of 2012 . In the next decade the portion of U.S. government debt will reach 100 percent of GDP .

" After that, when spending was much greater than revenues , combined with the rising burden of debt interest , the portion of U.S. debt will rise to a higher level , " said CBO .

Things like this are now being faced by several countries in the euro zone comrades . In 2037 the U.S. debt will be 200 percent of GDP . The U.S. economy will face pressure to be recorded in the history of the coming decades , plus the problem of population will age (aging population ) .

Generation of "baby- boomers " , the nickname for those who were born the end of World War II period until the early decades of the 1960s, will become increasingly older population and increase the share of productive age . On the other hand to the citizens of the old categories of health and social care costs rising as well.

CBO director , Doug Elmendorf , their views before the U.S. Congress on Wednesday ( 06/06/2012 ) this . "The description about the bleak future budgets ," said Elmendorf .

This picture seems to be directed to change the view of the Republican faction , which controls the lower house of parliament in the U.S. .

Republican Party has always refused to increase taxes and decrease spending declined . It is no longer correspond to reality , in which U.S. state revenues can not increase rapidly as usual .(Kompas.com)


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