According to a new report by the Congressional Budget Office (CBO), the federal budget deficit is on course to reach nearly $1.5 trillion this year, the biggest budget gap in history and one of the largest as a share of the economy since World War II. This year’s deficit would be the highest on record and would equal about 9.8 percent of the economy, the CBO said, slightly smaller than the 2009 budget gap, which at $1.4 trillion amounted to nearly 10 percent of the gross domestic product. The CBO forecast is on track to remain well above $1 trillion in 2012, the fourth year in a row. As a result, “debt held by the public will probably jump from 40 percent of GDP at the end of fiscal year 2008 to nearly 70 percent at the end of fiscal year 2011.”
These numbers are alarming. And today’s report highlights just how irresponsible President Obama is by not seriously addressing our exploding debt, which means addressing our entitlement crisis, which means (above all) reforming Medicare.
Long after last night’s State of the Union happy talk is forgotten, these fiscal realities will still be with us. The president has a moral obligation to confront this problem rather than deny it, to deal with the world as it is rather than as he wishes it to be.