Monday, April 16, 2018

Republican Congress Accelerates Rush toward Bankruptcy

Although the CBO expected the deficit to fall to "Only" $487 billion this year, it would start growing again next year.

By 2027, CBO projected spending would hit 23.4 percent of GDP. Over the long term, "Entitlement" outlays in particular would accelerate.

"The aging of the population and growth in per capita spending on health care would almost certainly boost federal spending significantly relative to GDP," the CBO explained.

As the agency politely put it, "Projected deficits over the 2018-2027 period have increased markedly since June 2017." The rise was almost entirely the result of the spending and tax bills approved last year: Uncle Sam will be spending a lot more while taking in a good bit less in the future.

According to the new CBO analysis, the deficit this year will exceed $800 billion, well above last year's prediction.

According to the CBO, the "Increase reflects significant growth in mandatory spending - mainly because the aging of the population and rising health care costs per beneficiary are projected to increase spending for Social Security and Medicare, among other programs. It also reflects significant growth in interest costs, which are projected to grow more quickly than any other major component of the budget." The agency figures that interest payments will rise three times in total and two times as a percentage of GDP by 2028.

In its report, the CBO included an "Alternate fiscal scenario," based on possible policy changes, which would result in significantly higher expenditures and deficits - a daunting $2.1 trillion in 2028.

https://www.nationalreview.com/2018/04/cbo-report-debt-american-bankruptcy-republican-congress/ 

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