The Budget of Doom

Brad DeLong:

The numbers in the back of the 2004 Budget documents project that the budget year that began when Clinton was still President will be America’s last surplus year, ever. The policies proposed in the 2004 Budget are projected to see the deficit widen steadily to 17.5 percent of GDP by 2050. By that date debt held by the public is projected to be 229.4 percent of GDP–a debt and deficit level that no economy could possibly sustain.

What does this mean? It means that the (not very bad) economic news of the past year coupled with the provisions the Bush Administration has put into its 2004 Budget will, if enacted, put the U.S. once more on the path to national bankruptcy.