Future Debt: What Are Its Causes?

The deficit of the United States for the next decade is thought to be approximately $9 trillion. This is not the same as the debt of the United States, already clocking in at $11.4 trillion, which is debt financed for prior expenditures. The future deficit is the projected total amount for which expenditures will exceed revenues of the federal government.

If we are to cut future spending and reduce the national debt, we must address those “unpaid” expenditures that are contributing to the rise in deficit financing. The items that contribute to the 10 year deficit because they are deficit financed (no revenue source was identified for them and they are not part of the regular budget or entitlement programs) will be:

2001 and 2003 tax cuts plus interest $4 trillion
Medicare Part D Prescription Drug Benefit $1 trillion
Economic stabilizers (welfare, unemployment, less tax) $3.5 trillion
Economic stimulus of 2009 $.8 trillion
________________________________________________________
Total $9.3 trillion

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