Scary Graphics from the CBO July 20, 2014Posted by geoff in News.
The CBO released a damning report last Tuesday, showing what the perpetuation of today’s economic policies would mean in the long term. No one seems to have noticed, but it’s pretty much an unalloyed message of doom and despair. Monty would eat this up.
If you’re not inclined to read it, allow me to sum up:
I hope you’re enjoying life right now, because it’s just going to get worse.
Here’s a tearjerker to get you started:
Oof. That’s some debt we’re doomed to pile up. 111% of GDP by 25 years from now (using their “extended baseline with economic feedback” scenario). And of course there’s nothing keeping it from continuing on that path thereafter.
Want some even better news? The CBO projection doesn’t include the effect of increasing interest payments on the economy, so it’s a tad (a tad = very) optimistic. It also assumes real GDP growth of 2.3%; over the past 10 years we’ve averaged 1.7%.
You may be wondering how this deficit is being generated. Actually, I’m sure you know already, but the answer is even worse than you think. Yes, it’s increased spending that’s the culprit, but look at the projection for 2039 compared to this year:
Yup, they’re increasing revenues, but the increased spending overwhelms it, creating a bigger deficit gap that we have today.
And who’s gonna not-quite-pay for all the increased spending? Like you had to ask. You, me, and all of the other people with jobs, of course. As usual:
So yeah, you’ll be seeing a 10% increase in taxes over the next 25 years, while enjoying a front row seat to watch the economy circle the drain.