CBO: Federal Debt Risks Fiscal Crisis
When Will our Leaders Lead?
(Washington, D.C.) – According to today's new estimates from the nonpartisan fiscal experts at the Congressional Budget Office (CBO), U.S. debt is currently on an "unsustainable" path, and may ultimately bring about a fiscal crisis. In its analysis of the long-term budget outlook, the agency reports that "budget deficits are projected to rise steadily and, by 2039, to push federal debt held by the public up to a percentage of GDP seen only once before in U.S. history." Despite the recently-enacted health care law, the agency indicates that without changes to the major health care programs, spending for those programs will grow much larger. By 2039 they will consume 14 percent of our national economy – compared to an average of just 7 percent over the last 40 years. CBO also identifies the health care law – and the insurance subsidies it offers – as a significant part of the cost.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
"Unless Washington confronts its spending addiction, this generation will pass along to the next more than $17 trillion in debt, and the real danger of a fiscal crisis as well. Too many politicians brag about reducing the deficit – but this only means our debt will grow more slowly – until the annual deficit begins ballooning in just a few years. As the CBO says, this path is simply unsustainable. Americans have long recognized that the most responsible thing for Washington to do is to restrain spending to sustainable levels – and the sooner the better.
The growing debt translates directly into slower growth and lower wages. It means Washington has less flexibility to address emerging threats such as terrorism. And it increases the chances of a fiscal crisis whose effects we can't predict. When will our leaders, lead?"