Daily News: March 22, 2013

Economists See No Debt Crisis as Economy Gains


Bloomberg reported that despite concerns over how the U.S. national debt is hurting the economy, economic data doesn’t support this claim.

Bloomberg said three years after a government spending surge in response to the recession drove the U.S. past that red line – the nation’s $16.7 trillion total debt is now 106% of the $15.8 trillion economy – key indicators reflect gathering strength.

Bloomberg noted that businesses have increased spending by 27% since the end of 2009. The annual rate of new home construction jumped about 60% and employers have created almost 6 million jobs.

And with borrowing costs near record lows, the cost of paying off the debt is lower now than in the year Ronald Reagan left the White House, as a percentage of the economy, Bloomberg said.

To read the Bloomberg story click here.