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NEW YORK — Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today on the release of the Congressional Budget Office’s updated Long-Term Budget Outlook:
“Today’s CBO report may not be a surprise, but it should be alarming for all of us. The report shows that America remains on a completely unsustainable fiscal path, with thirty years of trillion-dollar-plus deficits in a row, and our debt growing to twice the size of the economy.
“The current economic and inflation uncertainty should be a reminder of why it’s so dangerous to have a precarious fiscal outlook in the first place. High inflation, rising interest rates and recession fears are all more concerning and more difficult to address with an underlying challenge of high debt and deficits. On a day when the Federal Reserve continues its important work to fight inflation, the danger that growing interest costs pose to our nation’s future couldn’t be more clear.
“The good news is that our budget is fully within our own control, and lawmakers have plenty of good solutions available to set us on a better course. In the near term, deficit-reducing policies could not only help our fiscal picture, but could serve as a complement to monetary policy to help relieve inflationary pressure. Over the long term, our leaders should work together on bipartisan solutions to address the long-known structural drivers of our debt: healthcare costs, demographics, compounding interest, and a revenue base that is inadequate to fund the promises we’ve made.
“We must find a better path to become better prepared and well-positioned for America’s future. Our record high national debt threatens our economic strength, our leading role in the world, our ability to invest in the next generation and our capacity to withstand and respond to future crises, whatever they may be.”
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