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
Social Security Will Be Depleted By 2032, and Other Takeaways From the Trustees Report
Social Security’s primary trust fund is projected to be depleted by 2032, at which point, benefits for every recipient will be automatically cut by 22 percent.
Social Security and Medicare Trust Funds Will Be Depleted Within the Next Decade
The latest Trustees’ report projects that the Old-Age and Survivors Insurance Trust Fund will be depleted in 2032 — one year earlier than projected in the last two reports.
How Do Quantitative Easing and Tightening Affect the Federal Budget?
The Federal Reserve plays an important role in stabilizing the country’s economy.