Fiscal Cheat Sheet: Unsustainable Spending

November 1, 2010

We thought it might be helpful to re-release our “Fiscal Cheat Sheets,” which outline key economic and fiscal repercussions of government overspending. Please see below for an excerpt from “Unsustainable Spending,” and click on the document name to view it in its entirety.

Washington seems unable, or simply unwilling, to get control of its unsustainable levels of spending. The problem is not new; with few exceptions, government has always overspent (creating deficits by spending more than it took in) regardless of how much it taxed.

The federal government has run a deficit every year since 1969, with the exception of the years between 1998 and 2001.

Recent explosive spending growth has made a bad situation much worse.

Federal government spending has averaged around one fifth, or 19.7 percent, of our economy since World War II. This year, federal spending will account for roughly one quarter, or 24.6 percent, of the nation’s GDP.

All told, Washington has overspent to the tune of $13.7 trillion. In May, University of Maryland economist Carmen Reinhart, an expert on debt, told Congress the national debt is approaching a level that will have significant negative impact on jobs and economic growth.

It is impossible to tax, or even to grow, our way out of the coming fiscal crisis; spending must be reduced to sustainable levels.

For more of our “Fiscal Fact Sheets,” check out today’s re-release of “[Ir]Responsible Spending,” and check back tomorrow for “Consequences” and “Uncertainty.”

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9 Responses to Fiscal Cheat Sheet: Unsustainable Spending

  1. Mike says:

    I’ll send you a dollar for every billion dollars in spending Republicans cut when they take over next year… LOL… and you send me a dollar for every billion dollars INCREASE in spending… ok? Sound like a good bargain?

  2. Mike says:

    I’ll send you a dollar for every billion dollars in spending Republicans cut when they take over next year… LOL… and you send me a dollar for every billion dollars INCREASE in spending… ok? Sound like a good bargain?

  3. Mike says:

    I’ll send you a dollar for every billion dollars in spending Republicans cut when they take over next year… LOL… and you send me a dollar for every billion dollars INCREASE in spending… ok? Sound like a good bargain?

  4. Vince says:

    Mike, note that control of the federal government will remain in the hands of the currently dominant party.

    In any event, regardless of party, the long term trajectory of spending is up steeply without any changes in the law. And we’re slated for big tax increase on 1/1/2011 – absent any changes in law.

  5. Vince says:

    Mike, note that control of the federal government will remain in the hands of the currently dominant party.

    In any event, regardless of party, the long term trajectory of spending is up steeply without any changes in the law. And we’re slated for big tax increase on 1/1/2011 – absent any changes in law.

  6. Vince says:

    Mike, note that control of the federal government will remain in the hands of the currently dominant party.

    In any event, regardless of party, the long term trajectory of spending is up steeply without any changes in the law. And we’re slated for big tax increase on 1/1/2011 – absent any changes in law.

  7. Sane Voter says:

    I expect now that the GOP is in control of the House and the deficit continues increasing that Bankrupting America will continue running those radio ads every 10 minutes, right? Because the deficit is incredibly important…except when the GOP is in power.

    BTW, does anyone know who this site’s donors are and who paid for their radio ads? And if you take the same economic positions that billionaires take, don’t you have to question them? Once again millions of people were duped into supporting positions that will ultimately be to their detriment and to solely benefit the richest of the rich. http://factcheck.org/2010/10/public-notice-bankrupting-america/

    How about this in re of Mike’s pledge, I’ll donate a $1 of my own moderately hard-earned money to this organization for every ad I hear from them attacking Congress for the deficit after the GOP cuts taxes and does nothing to reduce spending this year. I won’t be holding my breath and I’m pretty sure I won’t have to donate $1.

  8. Sane Voter says:

    I expect now that the GOP is in control of the House and the deficit continues increasing that Bankrupting America will continue running those radio ads every 10 minutes, right? Because the deficit is incredibly important…except when the GOP is in power.

    BTW, does anyone know who this site’s donors are and who paid for their radio ads? And if you take the same economic positions that billionaires take, don’t you have to question them? Once again millions of people were duped into supporting positions that will ultimately be to their detriment and to solely benefit the richest of the rich. http://factcheck.org/2010/10/public-notice-bankrupting-america/

    How about this in re of Mike’s pledge, I’ll donate a $1 of my own moderately hard-earned money to this organization for every ad I hear from them attacking Congress for the deficit after the GOP cuts taxes and does nothing to reduce spending this year. I won’t be holding my breath and I’m pretty sure I won’t have to donate $1.

  9. Sane Voter says:

    I expect now that the GOP is in control of the House and the deficit continues increasing that Bankrupting America will continue running those radio ads every 10 minutes, right? Because the deficit is incredibly important…except when the GOP is in power.

    BTW, does anyone know who this site’s donors are and who paid for their radio ads? And if you take the same economic positions that billionaires take, don’t you have to question them? Once again millions of people were duped into supporting positions that will ultimately be to their detriment and to solely benefit the richest of the rich. http://factcheck.org/2010/10/public-notice-bankrupting-america/

    How about this in re of Mike’s pledge, I’ll donate a $1 of my own moderately hard-earned money to this organization for every ad I hear from them attacking Congress for the deficit after the GOP cuts taxes and does nothing to reduce spending this year. I won’t be holding my breath and I’m pretty sure I won’t have to donate $1.

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