Peterson Foundation Statement on Budget Deal February 2018

NEW YORK — Michael A. Peterson, President and CEO of the Peter G. Peterson Foundation, commented today on news reports that Senate negotiators have reached a budget deal to increase defense and domestic spending by approximately $300 billion over the next two years. Peterson said:
“This continues an unfortunate trend of fiscal irresponsibility. After adding trillions to our national debt in last year’s irresponsible tax bill, our leaders are now adding another $300 billion in deficits over just the next two years. It’s wrong to mortgage America’s future in order to simply keep the government open.
“Investing in our national defense and domestic programs is important, but if we do so with our credit card, many of these priorities will be undermined by weakening the nation. Growing our national debt hurts America’s future economy and role in the world.
“Today, America’s fastest growing program is interest on the debt. On top of $20 trillion in national debt, we are now looking at trillion dollar deficits starting next year, and permanently thereafter. Avoiding tough decisions simply deepens our fiscal hole, and leaves even greater challenges for the next generation. If these programs are important enough to be in the budget, they should be paid for.”
Further Reading
What Is Stagflation, and How Would It Affect the National Debt?
Stagflation is rare, but when it does happen, it can have significant negative consequences for the economy and the national debt.
Budget Basics: Federal Trust Funds
Federal trust funds bear little resemblance to their private-sector counterparts.
What Are Interest Costs on the National Debt?
Interest costs are on track to become the largest category of spending in the federal budget.