WASHINGTON - October 17, 2009 - What is $1.42 trillion? It's more than the total national debt for the first 200 years of the Republic, more than the entire economy of India, almost as much as Canada's economy, and more than $4,700 for every man, woman and child in the United States.
It's also the federal budget deficit for 2009, more than three times the most red ink ever amassed in a single year.
Some economists warn that unless the government makes hard decisions to cut spending or raise taxes, the deficit could represent the seeds of another economic crisis.
Treasury figures released Friday showed that the government spent $46.6 billion more in September than it took in, a month that normally records a surplus. That boosted the shortfall for the full fiscal year ending September 30 to $1.42 trillion. The previous year's deficit was $459 billion.
As a percentage of U.S. economic output, it's the biggest deficit since World War II.
"The rudderless U.S. fiscal policy is the biggest long-term risk to the U.S. economy," says Kenneth Rogoff, a Harvard professor and former chief economist for the International Monetary Fund. "As we accumulate more and more debt, we leave ourselves very vulnerable."
Forecasts of more red ink mean the federal government is heading toward spending 15% of its money by 2019 just to pay interest on the debt, up from 5% this fiscal year.
It's also the federal budget deficit for 2009, more than three times the most red ink ever amassed in a single year.
Some economists warn that unless the government makes hard decisions to cut spending or raise taxes, the deficit could represent the seeds of another economic crisis.
Treasury figures released Friday showed that the government spent $46.6 billion more in September than it took in, a month that normally records a surplus. That boosted the shortfall for the full fiscal year ending September 30 to $1.42 trillion. The previous year's deficit was $459 billion.
As a percentage of U.S. economic output, it's the biggest deficit since World War II.
"The rudderless U.S. fiscal policy is the biggest long-term risk to the U.S. economy," says Kenneth Rogoff, a Harvard professor and former chief economist for the International Monetary Fund. "As we accumulate more and more debt, we leave ourselves very vulnerable."
Forecasts of more red ink mean the federal government is heading toward spending 15% of its money by 2019 just to pay interest on the debt, up from 5% this fiscal year.