Peterson: New CBO Report Shows Fiscal Damage from Budget Deal
Peterson: New CBO Report Shows Fiscal Damage from Budget Deal
NEW YORK — Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today on the release of updated budget and economic projections from the Congressional Budget Office:
“We all know we are already on a troubling fiscal path, but today’s CBO report shows us that our leaders are making things considerably worse.
“CBO projects that the recent budget deal will add $1.5 trillion, plus interest, to our rapidly growing debt over the next decade. That’s on top of an already unsustainable outlook driven by major structural factors like demographics and rising healthcare costs.
“As we borrow more from tomorrow to pay for today, interest will consume a larger and larger part of the budget, limiting our options and threatening economic opportunities for the next generation.
“The good news is that there is no shortage of options to manage the debt and address key priorities like climate change and national security at the same time. The sooner leaders get to work, the easier and less costly it will be.”
Further Reading
Moody’s Downgrade of U.S. Credit Rating Highlights Risks of Rising National Debt
For the first time ever, all three major credit ratings agencies have downgraded U.S. credit below their top rating.
New Report: Rising National Debt Will Cause Significant Damage to the U.S. Economy
On all key financial metrics, from GDP and investment to jobs to wages, the growing national debt harms future economic prospects for American citizens.
The Federal Government Has Borrowed Trillions. Who Owns All that Debt?
Most federal debt is owed to domestic holders, but foreign ownership is much higher now than it was about 50 years ago.