Bush's fiscal legacy: bigger debt

[wakemeupwhenitsover]

Sub-heading: Duh.

By Peter Grier Thu Sep 27, 5:00 AM ET

WASHINGTON - Whatever happens over the next 16 months, President Bush will leave office having presided over one of the fastest accumulations of government debt in the history of the United States.

During his time in office, federal debt held by the public – Washington's equivalent of a credit-card balance – will have increased by more than 50 percent, to about $5.5 trillion. Uncle Sam will be paying interest on that sum for years to come.

snip

he bottom line: Uncle Sam's credit-card balance has become very large. Federal debt held by the public – the figure experts use to measure the US fiscal burden – was $3.3 trillion when Bush took office. It will be $5.5 trillion when he leaves, according to projections of the White House Office of Management and Budget.

The US has to pay interest to maintain that debt, just as individuals have to pay interest on their Visa and Mastercard balances. The rates are better – Uncle Sam has a lot of leverage in the credit markets – but the cost is still a considerable burden. This fiscal year, the US laid out $235 billion in net interest, according to Congressional Budget Office figures. That's a number that's half the size of the Pentagon budget.

http://news.yahoo.com/s/csm/20070927/ts_csm/adebt;_ylt=A0WTUcTg6vtG4YQAeA6Ne8UF

[enid602]

1. not much to show

And not much to show for all that debt.

[wakemeupwhenitsover]

2. You're right, there isn't much to show for it.

And the economic realities are going to severely limit the Dem president's options for expanding social programs.