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In the next few years the federal government will owe more than our entire economy produces

Posted by on Apr. 8, 2016 at 6:39 AM
  • 6 Replies
An auditor for the Government Accountability Office told lawmakers Wednesday that in the next few years the federal government will owe more than our entire economy produces.

Gene Dodaro, the comptroller general for the Government Accountability Office, testified at the Senate Budget Committee to provide the results of its audit on the government’s financial books.

“We’re very heavily leveraged in debt,” Dodaro said. “The historical average post-World War II of how much debt we held as a percent of gross domestic product was 43 percent on average; right now we’re at 74 percent.”

Dodaro says that under current law, debt held by the public will hit a historic high.

“The highest in the United States government’s history of debt held by the public as a percent of gross domestic product was 1946, right after World War II,” he said. “We’re on mark to hit that in the next 15 to 25 years.”

Another economic projection which assumes that cost controls for Medicare don’t hold and that healthcare costs continue to increase, shows debt rising even further.

“These projections go to 200, 300 percent, and even higher of debt held by the public as a percent of gross domestic product,” said Dodaro. “We’re going to owe more than our entire economy is producing and by definition this is not sustainable.”

Additionally, the audit found fault with the number of improper payments that should not have been made or were the incorrect amount. The audit found that in fiscal year 2015 there were $136.7 billion improper payments, which was up by $12 billion from the year prior.

The audit also called into question the reliability of the government’s financial statements. According to the report, if a federal entity purchases a good or service, that cost should match the revenue recorded by the federal entity that sold the good or service. The report found that this was not always the case and found hundreds of billions of dollars in differences between transactions between federal entities.

“The government-wide financial statements that the GAO audits tell us what came into the government’s coffers and what went out, what the government owns and what it owes, and if the operations are financially sustainable,” said Sen. Mike Enzi (R., Wyo.). “But can we trust the information in the statements?”

“GAO’s audit calls into question the reliability of the underlying financial data,” he said. “The sketchiness is such that GAO remains unable to even issue an audit opinion on the government’s books.”

According to the audit, these weaknesses will eventually harm the government’s ability to reliably report their assets, liabilities, and costs, and this will prevent the government from having the information to operate in an efficient and effective manner.
by on Apr. 8, 2016 at 6:39 AM
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jcrew6
by Platinum Member on Apr. 8, 2016 at 6:41 AM
And that's BEFORE Bernie's free shit for everyone tax hikes.
jcrew6
by Platinum Member on Apr. 8, 2016 at 6:43 AM
" audit found that in fiscal year 2015 there were $136.7 billion improper payments, which was up by $12 billion from the year prior."


136.7 billion. With a B! Hrmm?, the Obama administration... accountability was never their strong suit.
idunno1234
by Platinum Member on Apr. 8, 2016 at 8:23 AM

The Obama administration has made things worse but to lay this in his lap is absurd, especially since he doesn't legislate and he inherited a mess that was decades in the making.

The debt is scary enough.  What's even scarier is who we owe.

This is where partisan politics becomes a detriment.  We are at a unique place in our history where much of the country is disgusted with both parties, with all candidates and Americans are finally, FINALLY beginning to recognize how sick our political system is.

That being said those that are really running the country know it is in their best interest to fuel the fire of partisanship so they work tirelessly to feed people whatever garbage works.  We see it played out in places like cm, all the same old regurgitated bs.  We play so easily into their hands, those that have a vested interest in keeping things this way.

So if you want to continue to play the blame game, maybe you, all of us should turn our itchy pointer fingers towards ourselves for once.

NWP
by guerrilla girl on Apr. 8, 2016 at 8:34 AM

We really really should put a budget check our war machine and put it into proper proportion.

jcrew6
by Platinum Member on Apr. 8, 2016 at 11:32 AM
Military spending had gone down. But overall government spending hasn't gone down.

Quoting NWP:

We really really should put a budget check our war machine and put it into proper proportion.

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