The following quotes were taken from the CBO’s Jan 15 report, found here. They continue warning America that if our country doesn’t change the fiscal course that it’s on under excessive tax and spend policies, our country is headed for a disaster. We need to stand up, get vocal, vote out the spenders and force our elected officials to balance the federal budget, before the mounting $ trillions that we owe dooms us!
- Beyond 2017, real (inflation-adjusted) gross domestic product (GDP) will grow at a rate that is notably less than the average growth during the 1980s and 1990s.
- Cumulative deficits over the 2016–2025 period are projected to total $7.6 trillion.
- Outlays rise-to more than 22 percent in; Four key factors underlie that increase:
- The retirement of the baby-boom generation
- The expansion of federal subsidies for health insurance
- Increasing health care costs per beneficiary
- Rising interest rates on federal debt
- CBO projected under current law, debt would exceed 100 percent of GDP 25 years from now and would continue on an upward trajectory thereafter;a trend that could not be sustained.
- Such large and growing federal debt would have serious negative consequences, and are unsistainable.
- Interest rates on Treasury securities, which have been exceptionally low since the recession, will rise considerably in the next few years.
- Outlays for the federal government’s major health care programs will increase by $82 billion (or nearly 10 percent) this year
- Net interest payments increase from $227 billion, or 1.3 percent of GDP, in 2015 to $827 billion, or 3.0 percent of GDP, in 2025.
- Gross federal debt is projected to rise by $9.5 trillion over that period and to total $27.3 trillion at the end of 2025.
- The Long-Term Budget Outlook: Beyond the coming decade, the fiscal outlook is significantly more worrisome,public debt would exceed 100% of GDP by 2039.
The following 3 charts were pulled from CBO’s supporting analysis, and show the Federal Budget’s, and America’s future if significant changes aren’t made to control mandatory spending.