CBO Releases Study on Future Debt Crisis
(Washington, D.C.) – Yesterday the Congressional Budget Office (CBO) released The 2016 Long-Term Budget Outlook. According to the study, if current laws and spending trends remain the same then the budget deficit and debt will continue to increase over the next 30 years, eventually “reaching the highest level of debt relative to GDP ever experienced in this country.”
At the end of the 2008 fiscal year, debt held by the public was 39 percent of our Gross Domestic Product (GDP). After the Great Recession and financial crisis debt held by the public rose to 75 percent of GDP. The CBO projects that in ten years the debt will be 86 percent of GDP and in thirty years it will be 141 percent of the GDP – making it the highest level of debt in our history.
Daniel Garza, Executive Director of The LIBRE Initiative, released the following statement:
For too long the government has been recklessly spending the hard earned money of Americans. At The LIBRE Initiative, we have been advocating for lower levels of government spending because we know the consequences of a government that spends money it does not have. This irresponsible spending is already having perilous consequences – lower wages, fewer jobs, and less opportunity to achieve the American dream.
First came Detroit. Then, Puerto Rico. Soon, the whole country could go under. Policymakers have known for a long time that current spending levels will push the federal government to bankruptcy, but Washington keeps playing politics with our budget instead of thinking of future generations. Recently The LIBRE Initiative and other like-minded organizations announced“Stop, Cut, & Fix,” a proposal to enact a long-term appropriations bill to avoid future budget crises and control spending. Policymakers know full well that that something needs to be done about spending. The looming debt crisis cannot continue to be ignored. For the sake of our children and our country, we must keep elected officials accountable and make sure that they take action to rein in government spending and ensure that every American has the opportunity to create their own American dream.
For Interviews with a representative from The LIBRE Initiative, please contact Brian Faughnan, 703-678-4581