The Congressional Budget Office issued a warning this month that the United States’ national debt is on an unsustainable long-term trajectory.
Under the CBO’s extended scenario in the Long-Term Budget Outlook, federal debt held by the public is projected to surge from 97% of Gross Domestic Product at the end of Fiscal Year 2022 to 181% by the year 2053 if current laws remain unchanged.
The “Alternative Scenario,” which incorporates assumptions of some expiring provisions being extended, faster discretionary spending growth, and weak revenue collections, predicts an even worse outcome, with debt reaching 222% of Gross Domestic Product by the end of 2053.
The report further highlights the explosive growth of budget deficits. If no changes are made to existing policies, the budget deficit is projected to grow from 5.8% of GDP in 2023 to 10% by 2053.
This deficit in 2053 would be the highest outside of World War II and the Covid-19 pandemic, nearly three times the 50-year historical average of 3.6 percent of GDP.
The CBO’s Alternative Scenario presents an even graver outlook, with the deficit potentially reaching 12.6% of GDP by 2053.
The government projections show that government spending will consistently outpace revenue.
According to the extended baseline, spending will decline to 23.1% of GDP by 2026 but will subsequently rise to 29.1 percent by 2053.
In contrast, revenue is expected to decrease to 17.4% of GDP by 2025 before edging back to 19.1% by 2053. The primary drivers of this spending growth are increased retirement, healthcare, and net interest costs.
The CBO estimates that by 2052, debt will total 177% of GDP, 8 percentage points lower than the previous estimate of 185% of GDP. The projected deficit for 2052 is expected to be 9.8% of GDP, down from 11.1% in the previous long-term outlook. These improvements are primarily attributed to the $1.5 trillion of 10-year savings outlined in the Fiscal Responsibility Act.
High levels of debt impede income and wage growth, increase interest payments on the national debt, reduce fiscal flexibility during recessions or emergencies, burden future generations, and heighten the risk of a fiscal crisis.
If left unaddressed, the government projections suggest that the national debt will grow rapidly, reaching unprecedented levels relative to the size of the economy. With a nominal increase of approximately $120 trillion, the debt held by the public is forecasted to surge from $25 trillion to nearly $144 trillion by 2053.
It’s not gonna stop until we crash and burn. Neither side has the ability to restrain themselves.
Zimbabwe here we come.
By the time I die of old age, my salary will be used to buy a candy bar.
Bidenomics 001:
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Trickle down = Joe can’t get to the toilet quickly.
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Inflation = Too much ice-cream.
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Reduction = Hunter kept more than his share.
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Debit = Joe playing with his pet frog.
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Debt = One of the two sure things in life.
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Taxes = The other sure Biden thing.
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Rule of 72 = Isn’t that 5+2+(-6)?
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Balance = Joe on all fours.
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Liability = Balance minus assets.
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Retained earnings = Joe’s newest granddaughter.
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Scarce resources = Joe’s brain.
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ROI = huh?
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Assets = DOJ/FBI.
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Capital = Where Joe lives sometimes.
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Revenue = Made by China.
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Value = 0 works in this Administration.
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Product = What Hunter lives on.
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Supply = Never enough LGBTQ in the White House.
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Demand = 14 hours of sleep, plus 5 naps/day.
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Economic curve = Joe addressing a 12-year old girl in front of the press corps.
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Substitute goods = Donald John Trump.
EXCELLENT. THANKS.
If we would just give the rich one more tax break it would fix it.
Didn’t study economics, did ya?
Tell me one time a Republican tax cut in the last 40 yrs actually worked. Just once when deficits decreased on the lower middle class did better. I will be waiting
“Just once when deficits decreased on the lower middle class did better.” That there’s some rocket science.
The Bush tax cuts actually increased tax revenue.
Added bonus, the Bush reforms actually reduced the lowest income tax rates from 15% to 10%, and doubled most low income credits. So, not a cut for the rich…
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There’s one.
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Now, you go.
Show me a single Democrat tax law that actually improved the situation for the middle class.
What I am looking for a increased household income, or net worth, that can be directly traced to anything the Democrats did.
If you have it, spend it; if you don’t, spend it like you do! Live fast and high. This is Alaska: no “descent” person comes here to live a constrained life, and the fools always leave crying, so fleece them before your friends get to them first!
Breaking scientific news: Researchers have identified a previously unknown species in D.C. Like cicadas, this species stays underground for years at a time, typically in four- or eight-year intervals. Its members hide away until there is an auspicious change in the ecosystem. Then, they bust out and wreak havoc.
This species: Republicans who care about deficits. During the Trump administration there was rarely a peep from the right side of the aisle about deficit concerns. The debt limit — the statutory ceiling on how much the federal government can borrow to pay off its existing bills — was raised several times with little fuss, and no conditions. No one tried to hold it hostage. Catherine Rampell article in WaPos Jan. 17, 2023.
You’re funny. Mindless and pointless, but funny.
I know MA, not exactly the coverage you get on 4chan, BitChute, and OAN. But it wouldn’t hurt to read her article and assemble some sense of reality. But forgive me, it’s the Fourth of July weekend. So get out there, grab some Malt Liquor, and burn through a box of M80’s.
This is the perfect time to pay all black Americans (heck……why not all blacks on Earth?) “restitution” of $1.2 million each. That will soon buy them each a Snickers bar and cup of espresso.
Let’s hurry up and borrow more money. Let’s crash it asap so we can start over with common sense. These rich politicians will be exposed and broke.
Cool thing is that I’m going to be too old to care when it implodes any more than I do now. I’m just grateful that I lived in a decent time in the good ol’USofA. Thing is, I kind of wish I was in my early 20’s to take advantage of this magnificent hook-up culture we’ve created.
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