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.”
# # #
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.