Peterson Statement on CBO Report: 30 Straight Years of Trillion-Dollar Deficits

NEW YORK — Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today on the release of the Congressional Budget Office’s 2020 Long-Term Budget Outlook:
“CBO’s report shows 30 straight years of trillion-dollar deficits that grow and grow, leaving no doubt that we’re on a dangerous and unsustainable fiscal path.
“For many years, our national debt has been growing rapidly due to well-known structural problems, including an aging population, rising healthcare costs, and compounding interest — combined with insufficient revenues to meet our commitments. It’s tragic that interest on the debt is the fastest growing part of the budget, when we have so many other important priorities that need resources.
“Unfortunately, the coronavirus crisis has simply accelerated an already unsustainable fiscal trajectory, because of its devastating effect on the economy and the necessary legislative response.
“Once we have emerged from the pandemic, it will be more important and urgent than ever for our leaders to manage our debt, to ensure that America is more prepared for the future, better positioned for widespread and inclusive growth, and meeting our moral obligation to future generations.”
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Further Reading
The Fed Held Its Target Range After Reducing the Short-Term Rate Three Meetings in a Row
High interest rates on U.S. Treasury securities increase the federal government’s borrowing costs.
How Does the United States’ Fiscal Position Compare to Other Countries’?
The United States has higher budget deficits and spends more on interest costs than its peers.
The United States Collects Less Tax Revenue Than Other G7 Countries
The U.S. collects less tax revenues compared with other G7 countries, and that lower level of revenues is a key driver of the national debt.