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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCBO projects a decade of trillion-dollar deficits and soaring US debt
https://www.cnn.com/2020/01/28/politics/cbo-us-record-federal-deficits/index.htmlWashington (CNN)The federal deficit is projected to keep rising over the coming decade, driving US debt to the highest level since World War II over the next 10 years, according to a Congressional Budget Office report released Tuesday.
The annual congressional report projects that the US budget deficit is likely to blast through the symbolic threshold of $1 trillion this year despite a healthy economy with record low unemployment.
And that number is expected to widen each year over the next decade through 2030. As a result of the rising deficits, US government debt held by the public will soar from nearly $18 trillion at the end of 2020 to $31.4 trillion by the end of 2030.
Over that same period, that debt held by the public as a share of the economy will grow from 81% of GDP this year to 98% by 2030 -- the highest percentage since 1946.
The CBO warned that rising federal debt would likely reduce national savings and income, boost the government's interest payments, limit policymakers' ability to respond to unforeseen events and increase the likelihood of a fiscal crisis.
"Today's CBO report shows 10 straight years of trillion-dollar deficits," said Michael Peterson, CEO of the Peter G. Peterson Foundation. "That's a sad reflection of our nation's poor fiscal health, and it adds insult to injury that we're piling on all this debt in a growing economy."
The widening gap comes despite 2016 campaign promises by President Donald Trump to shrink or even eliminate the nation's deficit. But it has continued to climb upwards due in part to the 2017 tax cuts and a two-year budget deal that included increases in federal spending.
Big budget deficits typically grow during economic downturns -- but the US economy is expanding and unemployment is at a 50-year low.
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CBO projects a decade of trillion-dollar deficits and soaring US debt (Original Post)
Demovictory9
Jan 2020
OP
The Tea Party seems mighty silent now that it's republicans leading the way.
keithbvadu2
Jan 2020
#1
They keep singing that song. It's still like fingernails on a blackboard.
Hermit-The-Prog
Jan 2020
#4
keithbvadu2
(36,820 posts)1. The Tea Party seems mighty silent now that it's republicans leading the way.
The Tea Party seems mighty silent now that it's republicans leading the way.
progree
(10,908 posts)2. Some links to the report and to report summaries and slide show presentations
((My commentary is shown in double parenthesis, like this one -Progree))
# The Economic Outlook for 2020 to 2030 in 24 Slides - https://www.cbo.gov/publication/56051
# The Budget Outlook for 2020 to 2030 in 13 Slides - https://www.cbo.gov/publication/56050
Slide #12 - ((a big jump in revenues after certain provisions of the 2017 tax act expire at the end of 2025. So their deficit and debt projections assume that these provisions won't be renewed. If they are renewed, the situation is much worse than projected in this report))
((UGHH: "real bracket creep and related effects" increases from about 0.03% to about 0.45% of GDP from 2021 to 2030 (from my measurements of the graph). So the 2017 tax act (TCJA)'s changing to chained CPI for adjusting the income tax brackets for inflation in future years will bite harder and sooner than I expected.))
# Directors Statement on The Budget and Economic Outlook: 2020 to 2030 - blog post https://www.cbo.gov/publication/56052
# An Overview of The Budget and Economic Outlook: 2020 to 2030 -- Director Phillip Swagel briefs members of the press on The Budget and Economic - https://www.cbo.gov/publication/56080
(( #3 - hmm, net interest is about 1/3 of the deficit in 2020, and about 1/2 of the deficit in 2030 -- eyeballing the graph ))
((#4 - federal debt held by public: projected to reach 180% of GDP in 2050 (yes, 2050) -- from my meaasurements of the graph ))
# The Budget and Economic Outlook: 2020 to 2030 - Report - https://www.cbo.gov/publication/56020 ((the full report))
================
Net interest on the federal debit is expected to expand from 1.7% of GDP in 2020 to 2.6% of GDP in 2030. (( These interest payments go mostly to the wealthy, and foreigners get a bit more than 1/4 of it. ))
gratuitous
(82,849 posts)3. Totally doesn't matter
Until a Democrat is once again in the White House. Then it will be Topic #1 in every media outlet, and how we have to cut entitlements and benefits for the poorest because the wealthy have already suffered enough.
Hermit-The-Prog
(33,349 posts)4. They keep singing that song. It's still like fingernails on a blackboard.
We can still keep the oligarchs from carving up the world if we educate fast enough. Greta's army is helping.