The Congressional Budget Office recently released its long-term budget outlook. There isn't much new there; we are still in the red, and it will only continue to get worse. Considering the extent of the problem, you would think someone on the campaign trail would pay attention. Yet no presidential candidate really is.
First, CBO projects that the federal public debt-to-GDP ratio will go from its current 75% (up from 39% in 2008) to 86% in 2026 and 141% in 2046. On the deficit side, CBO projects that by 2020, our deficit level will reach $1 trillion, up from its current level of $534 billion. Today's deficit-to-GDP ratio is 2.9%, and it may be close to 5 percent in 10 years and 8.8% in 2046.
|Kimberlin Brown has been one of the few speakers at the|
GOP convention to talk about jobs and the economy. AP
There are a lot of assumptions going into these projections. As we know, a small change in these assumptions can have a significant impact. For instance, the newest projections show a slight improvement over previous projections because of lower-than-expected interest rates. However, CBO warns, a 1% increase in interest rates would propel the debt-to-GDP level to 188%. Gross debt would be much higher.Read the rest of this IBD op-ed HERE and follow a link to a related story below:
The Gaping Hole At The GOP Convention: Jobs And Growth
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