But it is not too late to reverse course and avert the coming bankruptcy of America. That will require fundamental structural reforms of all levels of government, and our most politically sensitive entitlement programs. If we do this right, thoroughly modernized entitlements will serve the poor and most vulnerable among us far better, and a new economic boom will restore America’s traditional, world leading prosperity.
As I discuss in my new book, America's Ticking Bankruptcy Bomb, during George Bush's eight years as president, the federal government grew by one-seventh relative to the economy, after Republican congressional majorities had so promisingly reduced it by that much from 1994 to 2000. But when President Obama got behind the steering wheel in 2009, he accelerated into hyperdrive even more so in all the wrong directions, doggedly pursuing the opposite of Reaganomics in every detail.
Federal spending under President Obama has already soared by another fourth relative to the economy, to the highest in history except during World War II. The national debt, now rocketing towards $20 trillion by 2020, is already the highest in history relative to GDP except for World War II, and on its current course will soar well past that record. Indeed, the national debt has been rocketing upwards so fast that under current policies more debt will be run up in one term under President Obama than under all other Presidents in history – from George Washington to George Bush – combined, according to President Obama’s own 2012 budget.
Under present policies, our national debt as a percent of GDP will soar past the level that triggered bankruptcy for Greece, when the financial markets refused to lend the government enough to cover its enormous annual deficit. The European Union tried to end that crisis with a trillion dollar bailout financed by its taxpayers. But who will bail out America? Who even could?