NEW YORK (CNNMoney.com) — A $9 trillion federal deficit over 10 years may be too hard to comprehend. But this part is easy: Such unwieldy amounts of debt could have an impact on Americans’ bottom line one way or the other — if not tomorrow, then the day after.
The U.S. government has been spending a great deal more than it has been taking in, and it is on track to do so well beyond the next 10 years. It has been borrowing money to make all that spending possible and it has to pay the money back with interest. How, you ask? By borrowing more.
The solution is straightforward if unpleasant: Shy of finding a fairy willing to leave trillions under Uncle Sam’s pillow, lawmakers will have to raise taxes and cut spending.