Will Too Much Debt Fuel A Double-Dip Recession?

That was the question raised by President Obama during an interview in China (one of our biggest creditors), as cartoonists seized the opportunity to comment on America's looming national debt. "It is important," said Mr. Obama, "to recognize that if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession."

More pressure on this issue is coming from the newly unveiled $848 billion Senate health care bill, which includes a number of tax increases, and is estimated by the nonpartisan Congressional Budget Office to have the potential to slash federal deficits by $130 billion over the next decade.

Some lawmakers aren't so sure. The Washington Post quotes Sen. Judd Gregg (R, NH) as saying the bill "may claim to be deficit-neutral, [but] it uses sleight-of-hand budgetary tricks by assuming unrealistic tax increases and Medicare cuts that members of Congress will not be willing to follow through on."

Where do you stand? There's never been a more important time to keep up with the issues and let policymakers know your views on which options they should pursue. To learn more, compare the health care proposals and check out the Citizen's Survival Kit and FacingUp.org, our web site and curriculum dedicated to helping citizens get the facts and participate in solutions to America's federal budget deficit and national debt problem.

College and high school students have yet another opportunity to get involved and have their voices heard, by participating in our Students Face Up to the Nation's Finances contest for essays and video presentations on the deficit and national debt. There are prizes of $500 each for the best entries, which are due by December 11th; click here for details.

Students Face Up to the Nation's Finances is made possible by a grant from the Peter G. Peterson Foundation.