In news that shouldn’t need to be clarified, the CBO reported yesterday that out-of-control spending programs, largely entitlements in this case, are pushing US deficit levels to an unsustainable point.
Of particular interest is the fact that (as we know, thanks to the Budget Control Act and sequester that no establishment politicians wanted), deficits are at their lowest point since 2007.
It should be obvious by this point that politicians in both parties simply must make the touch choices necessary to address our growing fiscal crisis.
Read more details from The Hill:
Washington’s failure to contain entitlement spending is biting into the nation’s long-term fiscal outlook, the Congressional Budget Office warned in a Tuesday report that found the nation’s debt would jump to 106 percent of gross domestic product (GDP) in 2039.
. . .
“Debt would be on an upward path relative to the size of the economy, a trend that could not be sustained indefinitely,” the report said.The nonpartisan watchdog said federal debt now held by the public stands at 74 percent of GDP.
Both that figure and the 25-year debt projection are slight increases from the CBO’s previous estimate, first released in September. The CBO found that U.S. debt was 73 percent of GDP in 2013 and predicted that would rise to 102 percent in 2039.
At the same time, the CBO said that, because of a range of policies enacted by President Obama and Congress, plus the general recovery of the economy, the 2014 deficit of 3 percent of GDP would be the lowest since 2007.
The Obama administration projected last week that the 2014 deficit would fall to $583 billion in 2014, or 3.4 percent of GDP, before rising again in the coming years.
Still, the current level of debt held by the public is almost twice what it was in 2008, and matched in U.S. history only by a brief span around World War II.