We knew this was coming, but that doesn't make it any less shocking.
The U.S. national debt rocketed past $24 trillion last week for the first time ever, and new analysis suggests that the debt will exceed GDP this year for the first time since WWII.
New analysis from the Committee for a Responsible Budget predicts that the debt will exceed the entire American economy this year:
Our latest projections find that under current law, budget deficits will total more than $3.8 trillion (18.7 percent of GDP) this year and $2.1 trillion (9.7 percent of GDP) in 2021. We project debt held by the public will exceed the size of the economy by the end of Fiscal Year 2020 and eclipse the prior record set after World War II by 2023.
These projections almost certainly underestimate deficits, since they assume no further legislation is enacted to address the crisis and that policymakers stick to current law when it comes to other tax and spending policies. The projections also assume the economy experiences a strong recovery in 2021 and fully returns to its pre-crisis trajectory by 2025. Assuming a slower and weaker recovery (but no changes in law), we estimate debt would grow to 117 percent of GDP by 2025.
What happens when the national debt exceeds GDP? We lose the ability to respond effectively and safely to a crisis, like, for example, a worldwide pandemic.
Our "leaders" in D.C. squandered the chance to get our nation on a strong financial footing during good economic times. They refused to cut wasteful and useless government programs, and they insisted that the good times would continue forever.
Now, when government spending is truly necessary, we find ourselves wondering whether we can weather this medical and economic storm.
Our children and grandchildren deserve better. They deserve a government that takes fiscal responsibility seriously, one that puts them in a strong position to meet the next crisis -- whatever that may be.
An Article V Convention of States is called and controlled by the states and has the power to propose constitutional amendments. Once ratified by 38 states, these amendments can force Congress to be fiscally responsible, balance the budget, and cut spending.
Neither Republicans nor Democrats have shown any willingness to get our fiscal house in order. That's why We the People must force their hand, and we can only do it with an Article V Convention of States.
Millions of Americans have voiced their support and 15 states are on board. Join the movement by signing the Convention of States Petition below!
