Just as Democrats are gaveling in their convention Tuesday, the federal government likely will announce another dubious milestone — $16 trillion in total federal debt.
In an election already focused on domestic issues of jobs, spending and deficits, the $16 trillion number is likely to underscore just how much is at stake in November for both parties, which are offering dramatically different ways to begin to eat away at the deep hole.
Gross federal debt has been flirting with $16 trillion for the past two weeks, and the government ended Thursday $15.991 trillion in debt.
With several debt auctions scheduled for the end of last week, budget analysts think the government probably broached the $16 trillion number on Friday, and it will be reported to the public Tuesday, which, thanks to the Labor Day holiday, is the next business day.
While $16 trillion isn’t a tipping point, it is a stark number that Republicans said will reflect poorly on Mr. Obama, who has overseen the biggest debt explosion in the country’s history.
“This is a grim landmark for the United States,” said Sen. Jeff Sessions of Alabama, the ranking Republican on the Senate Budget Committee. “Yet the president seems strangely unconcerned.”
The Obama campaign didn’t respond to a message seeking comment on the milestone, but, speaking on “Fox News Sunday,”David Axelrod, a top adviser to Mr. Obama, said the president has a “plausible plan” to stabilize the debt, but acknowledged the plan doesn’t actually begin to reduce it.
“You can’t balance the budget in the short term because to do that would be to ratchet down the economy,” he said.
That underscores both sides’ dilemma: Republicans object to tax increases, saying they will stunt a recovery, while Democrats say reducing spending would likewise hurt.
The Congressional Budget Office last month said raising taxes or cutting spending, or both, might indeed send the economy into a recession, though the alternative — putting off fiscal tightening — means things are worse in the long term.