Uncle Sol Starting a thought farm

Government Debt at All Levels

National debt is one thing. Add state and local debt into the mix and you have to wonder how much of our resources are actually going to productive uses and how much is just going to pay off debt. At the end of 2009 or governments at all levels were over $15 Trillion in debt, more than $1.2 Trillion more than everything of value that was produced in this country last year including government spending. One wonders, how long can this be sustained?

My latest post at RGD is here.

Already this year the federal government has taken on more than $200 billion additional debt. While President Obama notes that we can’t keep spending the way we have, the current budgets before congress propose to greatly increase spending and further increase the deficit. While state and local governments are feeling the pinch throughout the nation and cutting back spending, it doesn’t appear that the federal government plans to follow suit any time soon.

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