K-12 Tax & Spending Climate: Public United States Debt Rose from 41 to 53% of the Gross Domestic Product in the Past Year

Peterson-Pew Commission on Budget Reform PDF Report

Over the past year alone, the public debt of the United States rose sharply from 41 to 53 percent of gross domestic product (GDP). Under reasonable assumptions, the debt is projected to grow steadily, reaching 85 percent of GDP by 2018, 100 percent by 2022, and 200 percent in 2038.

However, before the debt reached such high levels, the United States would almost certainly experience a debt- driven crisis--something previously viewed as almost unfathomable in the world's largest economy. The crisis could unfold gradually or it could happen suddenly, but with great costs either way. The tipping point is impossible to predict, but the United States is already hearing con- cerns about its fiscal management from some of its largest creditors, and the country is uncomfortably vulnerable to shifts in confidence around the world.

Wisconsin ranks 10th amongst the States in State-Local debt service. Exploding debt levels mean that it is highly unlikely school districts will see significant new revenues. Like many organizations, they must change and spend precious dollars where most needed and automate elsewhere (virtual learning tools are a natural, as this post demonstrates).

Posted by Jim Zellmer at December 15, 2009 8:48 AM
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