Last week, President Bush and the House of Representatives put together a package designed to stimulate the economy, and the Senate is considering the package as we speak (if you read this aloud).
The package would cost the government approximately $150 billion, or about $500 for every human in the United States.
Then Monday, President Bush made his full budget proposal, and this full budget would come to about $3 trillion. The budget deficit would get even bigger than it is now. It would expand from the current $167 billion to more than $400 billion.
That is to say, President Bush is proposing that about 13 percent of the money needed would have to come from borrowing. The $150 billion stimulus package can be seen, then, as a part of that amount that we would be borrowing.
And we all know that, in a sense, the government seldom actually repays what it borrows. It does, of course, repay a specific debt -- we never have any trouble cashing in our savings bonds -- but, in a typical year, the government borrows from Peter to pay Paul, and it seldom actually pays down its debt. That means the interest just keeps mounting.