The President’s Budget Proposals Will Lead the Federal Debt to Approach 200 Percent of GDP Over the Next 70 Years
The President’s Budget Proposals Will Lead the Federal Debt to Approach 200 Percent of GDP Over the Next 70 Years
SOURCE: Office of Management and Budget, The Budget of the United States Government, Fiscal Year 2013, Analytical Perspectives
The President’s budget stabilizes the debt only in the short-term. If all of the proposals in the budget were adopted, government debt would still soar to unsustainable levels in the long run, even under the optimistic assumptions used in the administration’s long-run projections. Under less optimistic assumptions, debt would grow even faster. The President’s long-run budget projections assume that discretionary spending remains well below its 30-year historical average and that the growth of health care spending will slow significantly.
Download OMB’s Long-Term Budget Outlook
Download OMB’s Long-Term Budget Projections
Click here to read Michael Peterson’s statement on President Obama’s Budget.
Click here to read Michael Peterson’s op-ed in Politico.
Further Reading
How Much Does the Government Spend on International Affairs?
Federal spending for international affairs, which supports American diplomacy and development aid, is a small portion of the U.S. budget.
Can We Raise the Retirement Age and Protect Vulnerable Workers?
Raising the retirement age could harm workers who would be unable to delay retirement due to physically demanding occupations, disability, or job loss.
A Brief History of U.S. Government Shutdowns
Government shutdowns (and the threat of them) are a recent phenomenon and something other developed countries don’t contend with.