USA: NATIONAL DEBT CLOCK IS SWITCHED BACK ON AS THE U.S ECONOMY GOES BACK IN TO DEBTRecord ID: 639899
- Title: USA: NATIONAL DEBT CLOCK IS SWITCHED BACK ON AS THE U.S ECONOMY GOES BACK IN TO DEBT
- Date: 9th July 2002
- Summary: (U7)NEW YORK CITY, NEW YORK, UNITED STATES (JULY 9 2002) (WHITE HOUSE POOL) SMV PRESIDENT GEORGE W. BUSH SPEAKING ON CORPORATE RESPONSIBILITY
- Reuters ID: LVA6F6NX5UHO2RA5VZNKRW42677F
- Location: NEW YORK CITY, NEW YORK, UNITED STATES
- Country: USA
- Duration: 00:00:09
- Topics: General,Economy,Politics
- Story Text: After recording unprecedented surpluses the US economy is back in debt and, if there was any doubt, New Yorkers now have a visible reminder - again.
The National Debt Clock, a massive electronic billboard whose numbers spin around as the debt climbs, has been switched back on.
Rising above the streets of Manhattan the National Debt Clock spelt out the figures $6,116,272,005,419 soon after it was turned on and with the rising debt. that number rises steadily by 30 to 40 (US) dollars every second.
The National Debt Clock, was switched off on September 7, 2000 when the US national debt had been steadily falling.
Since President Clinton left the White House and was succeeded by President George Bush, the national debt has climbed again.
Analysts, say there are three basic reasons why America's debt is rising; Bush's massive tax cuts last year, the slowing economy, and the cost of America's so-called "war on terrorism".
Barry Hyman from Ehrenkrantz King Nussbaum explains: "I think tax cuts from President Bush have eaten into the surpluses, the economy has unfortunately slowed down to a halt in the past few years, although rebounding in 2002 creating a situation where the assumption is built in to maintain those surpluses were no longer in existence, therefore revenues dry up and the surpluses disappear, number three, the post September 11th rebuilding of the infrastructure after the terrorist attack has caused billions and billions of dollars to be spent so if you add all three together, we have an economy that is still working, but an economy that is starting to build deficits once again."
The clock, established in 1988, by Seymour Durst, also shows each American family's burden of the national debt. It currently stands at $66,791. Passers-by put much on the blame on President Bush for the dramatic rise since the Clinton years. Arthur Schrieder said: "I'm not going to blame him altogether, but I think there are certain things he should be doing to help this thing around and he's not doing it. I don't know who is advising him, OK, but I don't think he's got his head in the right area."
Barry Hyman says although many Americans are more interested in watching the stock market than the national debt, the country's deficit will eventually hit consumers where it hurts. Hyman said: "Deficits will mean different economic parameters than having a surplus, there was no concern having a surplus because that would help the interest rate picture, but it will hurt the consumer at some point and we should all be aware that that is the consequence of having deficit financing".
After being mothballed for twenty-two months, the sign now stands as a constant reminder that, at least for now, deficit financing is back.
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