Federal Debt reaching 70% of GDP by 2019 will only create political problems...
...according to everyone's favorite economist, Paul Krugman.
While its obvious that significant tax increases in the next 10 years are inevitable, and that its tough to run a political campaign with the slogan "the government desparately needs more taxpayer money," to say that running a budget deficit that's 70% of GDP is solely a political problem seems silly.
Krugman also states that reforming medicaid and medicare will be needed to curb the rising level of federal debt, but adds that it "shouldn't be hard in the context of overall health care reform." Stealing Gisele Bundchen away from Tom Brady "shouldn't be hard in the context of overall health care reform." Catching BravoBevo in Caps points "shouldn't be hard in the context of overall health care reform." Convincing Alstry that things really aren't that bad "shouldn't be hard in the context..." nah, that one's still harder.
According to the documentary "10 trillion and counting" it will basically take an act of God to seriously reform medicare. Many of Bush's tax cuts catered heavily to the 65+ population. As baby boomers begin to hit the medicare age, government health care expenses are going to take off.