Deficit hawks need to take a deep breath and stop squawking. The national debt is in bad shape, true. And it’s going to get worse, thanks to TARP and the stimulus bill and other baseline spending. But, for the next two years at least, the national debt will remain within its historic boundaries. David Leonhardt, as always, has the numbers:
Surprisingly, the debt that the federal government has already accumulated doesn’t present much of a problem. It is equal to about $6 trillion, or 40 percent of G.D.P., a level that is slightly lower than the average of the past six decades. The bailout, the stimulus and the rest of the deficits over the next two years will probably add about 15 percent of G.D.P. to the debt. That will take debt to almost 60 percent, which is above its long-term average but well below the levels of the 1950s.
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