In mid-June, the Congressional Budget Office (CBO) published its “2015 Long-Term Budget Outlook” and it makes for disturbing reading. According to the CBO, deficits, which are federal debts held by the public, are equivalent to 74% of U.S. Gross Domestic Product (GDP); this is at its highest level since World War II. Additionally, the CBO expects this to continue to rise, reaching between 103-107% by 2040. With its predictions of rising interest rates in the next decade, the CBO acknowledges this will only make the problem of federal debt considerably worse, as interest payments on the debt rise too.
Furthermore, with the aging U.S. population and rising healthcare costs, some of the largest federal programs, i.e. Medicare and Medicaid, will require a much larger budget “if current laws governing those programs remained unchanged.”
The effect of all of this on future economic growth is unknown, but clearly it doesn’t look good. If you believe this government should be addressing these issues now, and immediately reverse its policy of free-spending, please Like & Share this post.
