Data Point: Obama's policies are turning us into Venezuela - Granite Grok

Data Point: Obama’s policies are turning us into Venezuela

Even as Obama crows about the deficit (annual) being cut in half (like that’s supposed to be hard, given he started at over a Trillion), the National Debt keeps going up. And that debt requires debt servicing – and that is real money too.

Rising Tide of Interest

Currently, the government’s interest costs are around $200 billion a year, a sum that’s low due to the era of low interest rates. Forecasters at the White House and Congressional Budget Office believe interest rates will gradually rise, and when that happens, the interest costs of the U.S. government are set to soar, from just over $200 billion to nearly $800 billion a year by decade’s end.

By 2021, the government will be spending more on interest than on all national defense. according to White House forecasts. And one year later, interest costs will exceed nondefense discretionary spending–essentially every other domestic and international government program funded annually through congressional appropriations. (The largest part of the budget is, and will remain, the mandatory spending programs of Social Security, Medicare and Medicaid. Mandatory spending is over $2 trillion and is set to double to $4 trillion by 2025.)

Obama talks about the shrinking side but never the increasing side.  Wonder why?

(H/T: Real Time Economics)

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