Part 1 The Executive Summary and Looming Fiscal Crisis sections of Red Ink Rising: A Call to Action to Stem The Mounting Federal Debt expose the fact that the United States is in critical financial condition when it comes to the debt and deficit levels we are currently in. Furthermore, the article states that if we do not adopt a concrete plan soon, the U.S. could lose important foreign investors as debt has the potential to skyrocket to 200% of the GDP as soon as 2038. Currently, federal debt is around 40% of the GDP. However, that figure is projected to rise due to mandatory and discretionary spending by the government, the interest on the debt that will have to pay off, and the governments lack of a serious plan to be implemented. In regards to mandatory and discretionary spending, many policymakers are creating a deeper debt impact by supporting the tax cuts previously seen in 2001 and 2003, as well as adding trillions to debt in the coming decade by preventing physician payment cuts under Medicare’s sustainable
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This note was uploaded on 02/10/2012 for the course FIN 3403 taught by Professor Tapley during the Spring '06 term at University of Florida.