President Barack Obama will leave a big burden for the next leader at the White House: a national debt of about $20 trillion.
This is over 500x over the average company debt in the USA.
The current total national debt is around $18.15 trillion, but Barack Obama’s agreement with Congress to suspend national debt limit will allow the Treasury to borrow another $1.5 trillion, putting the total debt to nearly $20 trillion, says Washington Times.
The debt will double, compared to 2009
Obama was elected for the first time in 2009 and will finish his second seat at the White House in 2017. When he arrived, national debt was $10.6 trillion, meaning that in his eight years as President, the debt will have almost doubled and, according to the same source, there is much more debt ahead with the abandonment of “sequestration” spending caps enacted in 2011.
“Congress and the president have just agreed to undo one of the only successful fiscal restraint mechanisms in a generation. The progress on reducing spending and the deficit has just become much more problematic.”, said Peter Sepp, president of the National Taxpayers Union, quoted by Washington Post.
“This won’t be paid soon,” analysts say
Paul Winfree, director of economic policy studies at The Heritage Foundation, also spoke his mind. “This deal piles on billions of dollars to the national debt by increasing spending over the next three years and then not paying for it for a decade — with half of the offsets not occurring until 2025.”, stated Winfree.
Obama talked about the agreement with Congress on Friday. “This agreement will strengthen the middle class by investing in education, job training, and basic research. It will keep us safe by investing in our national security. It protects our seniors by avoiding harmful cuts to Medicare and Social Security.”, said the President.
He also talked about the fact that annual budget deficits have fallen from $1.4 trillion in fiscal 2009, to $439 billion in fiscal 2015, but omitted to say what this huge hole of $20 trillion in U.S’ economy means for the country and its population and for the presidents who will follow him at the White House.