Have the Debt and Deficits Gotten Better?
CNN’s Jake Tapper recently provided an informative look at the nation’s debt and deficit outlook, and how it’s perceived by voters. As he points out in the segment below, part of the problem when discussing America’s long-term debt is that it is often confused with short-term deficits.
Fact checking debt at the #DNC https://t.co/QwTNOFD0C4 #TheLead
— Jake Tapper (@jaketapper) July 29, 2016
Deficits, the annual shortfall in the federal budget, had been declining sharply since the Great Recession in 2009. Earlier this year, however, the nonpartisan Congressional Budget Office warned that the era of declining deficits was over, largely due to the passage of tax extenders at the end of 2015.
But much more important is the steep upward trajectory of our long-term debt — which remains as dangerous as ever. In its latest long-term outlook, released in June, CBO projected that the federal debt will climb to 141 percent of GDP by 2046 — by far the highest level on record.
For more clarification on the difference between the debt and the deficit, read "Debt vs. Deficits: What's the Difference?"
Further Reading
National Debt Projected to Hit 175% GDP; Interest Totals $99 Trillion
Compared with the previous 30-year projections, spending will be higher, revenues lower, interest rates and interest payments elevated, and the national debt significantly larger.
Federal Healthcare Costs on Track to Reach $3.1 Trillion by 2036
Federal healthcare programs are among the fastest-growing drivers of federal spending, and their continued growth will put significant upward pressure on the national debt.
Quarterly Treasury Refunding Statement: Higher Borrowing Compared to Last Year
Key highlights from the most recent Quarterly Refunding include an increase in anticipated borrowing of $249 billion compared to the same period in the previous year.