(The Center Square) – The national debt will be nearly twice as large as the U.S. economy in 30 years, the U.S. Congressional Budget Office projects.
That figure assumes no new major spending projects from Congress in that time, which is unlikely, meaning that debt levels could actually rise much more quickly. Conversely, Congress could slow that trend by cutting spending.
“By the end of 2023, federal debt held by the public equals 98 percent of GDP,” the report said. “Debt then rises in relation to GDP: It surpasses its historical high in 2029, when it reaches 107 percent of GDP, and climbs to 181 percent of GDP by 2053.”
CBO found that deficits are poised to soar as well.
“In CBO’s projections, the deficit equals 5.8 percent of gross domestic product (GDP) in 2023, declines to 5.0 percent by 2027, and then grows in every year, reaching 10.0 percent of GDP in 2053,” the report said. “Over the past century, that level has been exceeded only during World War II and the coronavirus pandemic.”
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, responded to the CBO projections, saying “there is still a tremendous amount of work needed to put our fiscal situation on sound footing.”
MacGuineas said the fast growth of Medicare, Social Security and interest on the debt are particularly problematic.
As The Center Square previously reported, the interest payments on the national debt are projected to exceed the cost of U.S. spending on national defense within a decade.
“Though the Fiscal Responsibility Act was an important step forward, it can only be the start of our efforts to get the debt under control,” MacGuineas said. “The FRA didn’t address health care, Social Security, or tax revenue. There is no way to put our debt on a sustainable course without looking at these three parts of the budget.”
Policymakers need to stop demagoguing Social Security and Medicare and start leveling with the American people about the serious challenges these programs face.
Macguineas said that within a decade, the trust funds for Medicare, Social Security and highways “will face insolvency.”
“If allowed to occur for Social Security, that will mean a 26 percent across-the-board benefit cut for all seniors, regardless of how much they depend on the program,” she said.
The CBO report said the higher debt levels will have serious economic consequences.
“Such high and rising debt would slow economic growth, push up interest payments to foreign holders of U.S. debt, and pose significant risks to the fiscal and economic outlook; it could also cause lawmakers to feel more constrained in their policy choices,” the report said.
CBO said it will also lead to higher inflation and “erode confidence in the U.S. dollar as the dominant international reserve currency.”
“There would be an elevated risk of a fiscal crisis – that is, a situation in which investors lose confidence in the U.S. government’s ability to service and repay its debt, causing interest rates to increase abruptly, inflation to spiral upward, or other disruptions to occur,” the report said.
If WE the PEOPLE do not destroy this Big, Destructive, Corrupt, Socialist Government. IT WILL DESTROY THE U.S.A.!!!!
THIS IS WHY I wonder, WHY THE Traitors in congress, KEEP GIVING THEMSELVES pay rises, while WE the people suffer!?!?
WINSTON CHURCHILL-” CAPITALIST SYSTEM-THE UNEQUAL SHARING OF BLESSINGS-SOCIALISM, THE EQUAL SHARING OF MISERY.”
The democrat, SOCIALIST/ COMMUNIST, party President, JOE BIDEN, isn’t INTERESTED IN saving the country’s military or the country, he only reads what’s on the promoters and like a good PUPPET that he is, AS democrat, puppet president once said.” GOD SAVE THE QUEEN.”!
“The American Republic Will ENDURE Until the Day CONGRESS Discovers That It CAN Bribe the Public WITH THE PUBLICS Money.”
ALEXIS DE TOCQUEVILLE
The SOCIALIST, DEMOCRAT PARTY, UNDER JOE BIDEN AS PUPPET PRESIDENT, HAS DISCOVERED THAT THEY CAN KEEP THE MINORITIES VOTING FOR THE DEMOCRAT PARTY AS LONG AS THE MINORITIES RECEIVE THAT
” WELFARE,” IN ONE FORM OR THE OTHER.
The prevailing attitude clearly appears that “why bother” and be concerned about the debt and budgeting. These items are just agenda points and will never be taken seriously, which is very unfortunate. Could seriously reduced spending be possible? Of course, however, it won’t ever happen due to the fact that there will never be any negative consequences suffered by anyone. Threaten Congress, and all senior administrators, including the President with an automatic trip to jail if the proposed numbers are not achieved and watch the whirlwind response to the issue resolve itself seemingly overnight. All we get bow is well orchestrated political theater like the recent debt ceiling event; a total waste of time and resources.
Quickest way to solve the problem, is to tie their salaries to the budget: if there’s a deficit, they owe money to the government in proportion to the amount of deficit for the year. If there’s a surplus, they get an income in the same proportion (with a cap on total income of 100% of the median household income – they are representing us, right?)
I know this will never happen, but they’ve been using public funds for decades to buy vote to keep themselves in power, so, realistically, they should be in prison for “misappropriation of funds”.
THEFT of funds more like.
” IF You want to know who rules over you, just look for who you are not allowed to criticize.”
VOLTAIRE
Former DEMOCRAT PRESIDENT, Barack H. Obama, to paraphrase him said,” YOUR NOT ALLOWED TO CRITICIZE ME…”
” IF YOU WANT TO KNOW WHO RULES OVER YOU, JUST LOOK FOR WHO YOU ARE NOT ALLOWED TO CRITICIZE.”
VOLTAIRE
” Fox News Runs Bizarre Chyron Claiming Obama Said …
https://www.mediaite.com/tv/fox-news-runs-bizarre…
WebJun 24, 2023 · Friday’s Jesse Watters Primetime featured a strange chyron claiming that former President Barack Obama said people aren’t allowed to criticize him. ”
” CHYRON,” ” A CAPTION SUPERIMPOSED…”
When the house of cards that is our economy collapses, I expect to see congress critters hanging from trees all over the country.
Those in Washington couldn’t ” see the Forest for the TREES, ”
“but the Middle-Clasd could. Democrats thought that they could keep giving out Wefare forever and buy the votes without consequences later on.
” Suspose i was a idiot and suppose i was in Congress, but i repeat myself.”
Mark Twine
” Suppose you were an idiot, and suppose you were a member of Congress; but I repeat myself.”
Mark Twain