National-Debt-Clock-NYCObama spending, welfare expansion on track to completely consume US economy

A new non-partisan government report finds rising government spending under Barack Obama and a Republican Congress will soon send the U.S. economy into total collapse, the Washington Times reports.

“If current law remained generally unchanged in the future, federal debt held by the public would decline slightly relative to GDP over the next few years,” the Congressional Budget Office (CBO) reports in a new long-term projection of federal budget policies.

“After that, however, growing budget deficits—caused mainly by the aging of the population and rising health care costs—would push debt back to, and then above, its current high level. The deficit would grow from less than 3 percent of GDP this year to more than 6 percent in 2040. At that point, 25 years from now, federal debt held by the public would exceed 100 percent of GDP,” reports the CBO.

Under that scenario, the government would either default on its debt or have to confiscate nearly all wealth, either of which would destroy the economy.

But that’s not the only way Obama’s spending is destroying the economy.

“The large amount of federal borrowing would draw money away from private investment in productive capital over the long term, because the portion of people’s savings used to buy government securities would not be available to finance private investment. The result would be a smaller stock of capital, and therefore lower output and income,” says the CBO.

“The rising debt could not be sustained indefinitely,” said the CBO, which was already obvious to anyone not already in the White House or Congress.

The CBO, run by independent, non-partisan experts, blames Obama’s massive spending and government programs that incentivize people to leave the workforce for government assistance.

The CBO warns Congress that they must immediately enact either massive spending cuts or massive tax hikes.

“To put the federal budget on a sustainable path for the long term, lawmakers would have to make major changes to tax policies, spending policies or both,” the CBO said.

Congressional Democrats revolted against the report, insisting the government can grow the economy through colossal increases in spending.

“Responsible deficit reduction does not mean billions of dollars in unpaid-for tax breaks,” said Maryland Democrat Rep. Chris Van Hollen. “It doesn’t mean recklessly cutting spending — despite the fact that the cuts will slow economic growth — or arbitrarily demanding a balanced budget. It does not mean disinvesting in America’s future and turning our back on the promises we’ve made to America’s seniors.”

The report calls that a lie.

The independent government report finds “government investment yields only half the return on investment compared with the private sector and that money transfers to the poor act as “implicit taxes,” keeping them out of the labor force and depressing the economy further,” the Times reports.