Peterson Foundation Statement on Budget Deal February 2018

NEW YORK — Michael A. Peterson, President and CEO of the Peter G. Peterson Foundation, commented today on news reports that Senate negotiators have reached a budget deal to increase defense and domestic spending by approximately $300 billion over the next two years. Peterson said:
“This continues an unfortunate trend of fiscal irresponsibility. After adding trillions to our national debt in last year’s irresponsible tax bill, our leaders are now adding another $300 billion in deficits over just the next two years. It’s wrong to mortgage America’s future in order to simply keep the government open.
“Investing in our national defense and domestic programs is important, but if we do so with our credit card, many of these priorities will be undermined by weakening the nation. Growing our national debt hurts America’s future economy and role in the world.
“Today, America’s fastest growing program is interest on the debt. On top of $20 trillion in national debt, we are now looking at trillion dollar deficits starting next year, and permanently thereafter. Avoiding tough decisions simply deepens our fiscal hole, and leaves even greater challenges for the next generation. If these programs are important enough to be in the budget, they should be paid for.”
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.