Moreover, more than half of Americans age 18 and older derive benefits from various transfer programs, while paying little or no personal income tax.
Both the budget deficit and federal debt have soared during the recent financial crisis and recession. ( ① )
During 2009-2010,
nearly 40 percent of federal expenditures were financed by borrowing. ( ② )
The huge recent federal deficits have pushed the federal debt to levels not seen since the years immediately following World War II. ( ③ )
The rapid growth of baby-boomer
retirees in the decade immediately ahead will mean higher spending levels and larger and larger deficits for both Social Security and Medicare. ( ④ )
All of these factors are going to make it extremely difficult to slow the growth of federal spending and keep the debt from ballooning out of control. ( ⑤ )
Projections indicate that the net federal debt will rise to 90 percent of GDP by 2019, and many believe it will be even higher unless constructive action is taken soon. * deficit: 부족, 결손 ** federal: 연방의 *** soar: 급등하다, 치솟다