How About Some Debt To Go With That Debt? July 13, 2016Posted by geoff in News.
Not much to like in the latest CBO Long-Term Budget Outlook report. Debt, debt, and more debt. Here’s the projection compared to historical debt levels (all charts taken from the CBO report):
Depressing, but at least it’s a pretty chart. You might ask yourself, “Hey winsome IB reader, does that debt come from too much spending or not enough revenues?” So here’s that chart:
Yup, spending is the culprit, rising from its historical (post-WWII) level of 19-20% to 28.3% by 2046 (30 years from now). Inexorably rising, I should have said.
The debt projection has gotten much worse in only one year, so you can look forward to next year’s projection:
How to fix it? Here are some scenarios:
Yup, you’d have to cut more than $2 trillion out of the budget to keep the debt level the same as it is today, and $4 trillion to get it back to pre-Obama levels.
If you compare the likelihood of Congress making those cuts to the likelihood of Congress increasing spending over current levels (via, say, more entitlement programs), I think you’ll agree that the CBO’s most pessimistic curve (the top one) should be the baseline.