By Noah Smith Bloomberg News Thursday, June 27, 2019
The Congressional Budget Office has just released its projections for the U.S. federal budget during the next 30 years. The picture is one of steadily rising deficits. Federal government borrowing now amounts to about 4.2% of gross domestic product each year. By 2049, the CBO predicts, that will more than double, to 8.7%:
Only a small portion of these deficits will be due to tax cuts; the CBO projection expects that individual income taxes rise substantially as a share of GDP. Nor will it be due to government profligacy; CBO predicts that discretionary spending will shrink substantially relative to the size of the economy.
If true, that will cause an exponential increase in the amount the government has to pay for debt service. ...
... For the remainder of the commentary:
https://www.bloomberg.com/opinion/articles/20...rising-debt-... * * *
