Except for the 1990s,the Federal Deficit Has Shown a Rising

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The Answer is Bankruptcy means that an entity is no longer able to meet its financial obligations.With the power to tax and borrow and print money,bankruptcy seems unlikely for the United States.It is also important to take the growing size of the economy into consideration.Despite the rising trend in its absolute size,the U.S.government deficit as a percentage of GDP has been rather stable.Similarly,the debt-to-GDP ratio has been quite stable historically.However,many economists are worried about the future trends of these ratios.Programs such as Social Security,Medicare,and Medicaid are already the largest in terms of government spending and will continue to grow even larger as the population ages in the United States.This will allow total spending to continue to rise at a rate faster than the rate of total revenue without significant changes in these programs and/or taxes.This means that the debt-to-GDP ratio will continue to rise over time unless the tax and spending trends change significantly in the future.Without change we may not be able to tax and borrow enough and printing enough money would be disastrous in terms of the potential inflation it would cause.

Except for the 1990s,the Federal Deficit Has Shown a Rising

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