Statement from Foundation President, Michael A. Peterson, on CBO’s Long-Term Budget Outlook
“The message of this CBO report is clear — the nation’s current fiscal path is unsustainable over the long term. A federal debt level of 200% of GDP within 25 years would place an unthinkable burden on the next generation — trillions in interest payments would crowd out much needed investments in our economy, and the safety net could be shredded as resources become scarce.
CBO also recently warned that the confluence of expiring tax cuts and automatic spending reductions occurring at the end of the year could lead to another recession if our current course isn’t altered. Our elected leaders should use the need to act on these year-end events as an opportunity to put in place a comprehensive bipartisan fiscal plan that gets implemented when the economy recovers. Agreeing on a plan that shows that America is getting its fiscal house in order would give the economy a badly needed boost of confidence in the short term, and put America on a much more sustainable and prosperous path for the long term.”
Further Reading
How Does the National Debt Affect Inflation, Housing Costs, and the Job Market for Young People?
The unsustainable national debt poses a risk to our economic future, and young Americans may have the most to lose.
The National Debt Can Crowd Out Investments in the Economy — Here’s How
Large amounts of federal debt could “crowd out” investments by the private sector, making the economy less productive and stunting wage growth.
The President’s Budget Doesn’t Address National Debt, and Calls for Highest Defense Spending in History
For the second year in a row, the Trump Administration has submitted a budget that excludes key fiscal variables such as debt and deficit projections.