(NPR Its All Politics Blog) CBO Report Warns Of Long-Term Debt Problems

There’s plenty of fodder for deficit hawks in a new report from the nonpartisan Congressional Budget Office. In short, the future looks grim….

First, the good news: The CBO projects the deficit will shrink to $378 billion in 2015, or 2.1 percent of the size of the overall U.S. economy. Compared with just a few years ago when the budget gap ballooned as a result of the recession, this marks a nearly unprecedented improvement in the deficit picture. It’s a rapid decline in budget shortfalls not seen since the end of World War II. The national debt will bottom out in 2018, at 68 percent of GDP.

The bad news: From there, the picture gets decidedly less rosy. Budget deficits gradually rise, “mainly because of increasing interest costs and growing spending for Social Security and the government’s major health care programs (Medicare, Medicaid, the Children’s Health Insurance Program, and subsidies to be provided through the health insurance exchanges),” says the report. By 2038, the national debt will reach 100 percent of GDP….

Read it all and follow the link to the actual report.


Posted in * Culture-Watch, * Economics, Politics, Aging / the Elderly, Budget, Economy, Ethics / Moral Theology, House of Representatives, Medicaid, Medicare, Middle Age, Office of the President, Politics in General, Senate, Social Security, Taxes, The National Deficit, The U.S. Government, Theology, Young Adults

One comment on “(NPR Its All Politics Blog) CBO Report Warns Of Long-Term Debt Problems

  1. Capt. Father Warren says:

    There is nothing new here:

    1. Deficits will shrink for a period of time as all the new taxes for Obamacare are collected before Obamacare benefits start to be paid.

    2. After 2015 deficits climb again as the bills for Obamacare start to be paid.

    Move along, nothing to see here.