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 Faces Serious Financial Shortfalls and Other Takeaways From the Trustees Report
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Social Security and Medicare Trust Funds Could Be Depleted Within the Next Decade
Today, the Social Security and Medicare Trustees released their annual reports on the programs’ financing, showing that the future of these vital programs remain at risk.
What Are Earmarks and What Purpose Do They Serve?
Earmarks have been controversial, but nevertheless were reinstated by Congress in 2021 after a 10-year moratorium.