Our friends over at the Committee for a Responsible Federal Budget (CRFB) released a new paper last week examining the budget 75-years down the line. In The 75-Year Budget Outlook they found some troubling statistics, but nothing completely surprising.
They summarize that:
- Under current law, debt will double from 78 percent of GDP today to 160 percent by 2050 and reach 360 percent of GDP by 2093.
- Under CBO’s Alternative Fiscal Scenario – which assumes the continuation of current policies – debt would reach 225 percent of the economy by 2050 and over 600 percent of GDP by 2093.
- Budget deficits under these scenarios would rise from about 4 percent of GDP this year to between 20 and 35 percent of GDP by 2093.
- Securing the solvency of various trust funds would go a long way toward fixing the debt. Under our TRUSTGO Scenario – which assumes revenue and/or benefit changes sufficient to achieve solvency in Social Security, Medicare Hospital Insurance, and the Highway Trust Fund – debt would stabilize at about 100 percent of GDP.
By 2093, our country’s finances will completely be in shambles if something isn’t done. It’s necessary that the federal government and Congress make the necessary changes to ensure we do not have a fiscal disaster. There are ways to cut spending and move us in the direction, but it will take difficult conversations and tough votes for that to happen.
You can read the full report on their website here.