FISCAL BLOG

CBO estimates that the national debt would climb from 78 percent of gross domestic product (GDP) in 2018 to 87 percent of GDP by 2029 under the president’s policies.

The amount spent by the federal government on interest is large and growing. Recent Congressional Budget Office (CBO) projections show that net interest will become the third largest “program” in the budget by 2025.

Under current law, the U.S. budget deficit will exceed $1 trillion each year beginning in 2022 and total $11.4 trillion over the upcoming decade according to projections by The Congressional Budget Office (CBO).

Overall healthcare costs — including all private and public spending — are anticipated to rise by an average of 5.5 percent per year over the next decade.

Growth over the next few years is expected to slow as the recent fiscal stimulus wanes.

The Social Security and Medicare Trustees released their annual reports, which show that these vital programs are on an unsustainable path.

Debt held by the public would reach record levels relative to the size of the economy within the next two decades, and possibly as soon as 2032 — just 13 years from now.

Lower levels of debt allow governments to respond more effectively to a recession or financial crisis.

High healthcare spending is not necessarily a bad thing, especially if it leads to better health outcomes. However, that is not the case in the U.S.

Although the budget would achieve some deficit reduction on paper under the administration’s calculations, it fails to address the key drivers of our long-term debt and relies on overly-optimistic assumptions for economic growth.