Posted on 08/26/2015 5:29:09 PM PDT by markomalley
The deficit is estimated to more than double in 10 years, which is projected to push debt held by the public up to 77 percent as a percentage of Gross Domestic Product (GDP), according to Congressional Budget Office (CBO) estimates.
Despite an anticipated rise in tax collection, the CBO predicts that the government will continue to spend outside of its means. The CBO warns that later in the coming decade, growth in government spending will “outstrip” growth in the economy.
According to the CBO, by the end of this year, federal revenues are expected to climb to $3.3 trillion—or 18.2 percent of GDP. These revenues include sources like individual income taxes, corporate income taxes, and payroll taxes.
While revenues are expected to climb to nearly $5 trillion by 2025, an increase of about 52 percent, government spending will increase at an even higher rate.
The CBO estimates that federal outlays will rise to about $6 trillion by 2025, an increase of about 62 percent.
Federal outlays will increase by $199 billion in 2015 alone. Most of this increase is due to major health care programs, such as Medicare, Medicaid, Children’s Health Insurance Program (CHIP), and subsidies for health insurance purchased through the Obamacare exchanges.
Other mandatory government spending includes outlays from Social Security, the Supplemental Nutrition Assistance Program (SNAP), the Earned Income Tax Credit (EITC), unemployment compensation, military retirement outlays, veterans’ programs, transactions with Fannie Mae and Freddie Mac, and higher education programs, to name a few.
“Later in the coming decade, under current law, growth in outlays would outstrip growth in the economy; outlays would rise to 22 percent of GDP in 2022 and remain at that level through 2025,” states CBO.
Because government spending will continue to outpace revenues at a greater rate over the next ten years, the deficit is expected to more than double by 2025. By the end of this year, CBO predicts that the government will have a budget deficit of $426 billion. By 2025, that deficit will increase to roughly $1 trillion, an increase of 135 percent.
“Such deficits would push debt held by the public up to 77 percent by the end of the 10-year projection period, roughly twice the average it has been over the past five decades.”
“Beyond 2025, if current laws remained in place, the same pressures that contribute to rising deficits during the baseline period would accelerate and push debt up sharply relative to GDP,” states the report. “Such high and rising debt would have serious negative consequences for the nation.”
This rising debt will be more cause for concern in the coming decade due to rising interest payments. “The government’s interest payments on debt held by the public are projected to rise sharply over the next 10 years because of two factors: rising interest rates and growing federal debt,” states CBO.
GOOD! Channeling Paul Krugman.
They must be calculating that Obama will indeed have a third term, or perhaps Jeb Bush.
Jeb is like is brother, he never saw a govt program he did not like.
This china shop needs a bull.
Needs
to
Stop
NOW!
Candidate Obama was shocked that the debt had soared to about $9 trillion before he became president. But at $18 trillion and counting, now the debt doesn’t matter to liberals or Democrats.
If a Republican is elected president in 2016 then the Democrats will decide that the debt is a problem again.
$350,870,749,304.93 Interest paid as of 8/6/15 with interest rates at 2.337 (avg total interest bearing debt)
(Sept 30, 2008 @ 4.188)
Wow. Now remember that’s interest at some fairly low interest rates. If interest rates rise, if we have inflation, if our debt gets downgraded again, causing interest expense to rise.......
Well we could become Greece in the next few years. Could be a bumpy ride.
BIG GOVERNMENT IS CRONY SOCIALISM
Socialism Is Legal Plunder - Bastiat
6. But the grand nostrum will be a public debt...
7. It must not be forgotten that the members of the legislative body are to have a deep stake in the game. This is an essential point, and happily is attended with no difficulty. A sufficient number, properly disposed, can alternately legislate and speculate, and speculate and legislate, and buy and sell, and sell and buy, until a due portion of the property of their constituents has passed into their hands to give them an interest against their constituents…
10. “Divide and govern”…
11. As soon as sufficient progress in the intended change shall have been made, and the public mind duly prepared according to the rules already laid down, it will be proper to venture on another and a bolder step toward a removal of the constitutional landmarks.
Rules for Changing a Limited Republican Government into an Unlimited Hereditary One
http://www.constitution.org/cmt/freneau/republic2monarchy.htm
Debates in the House of Representatives on the First Report on Public Credit 9–18 February 1790
James Jackson (Ga.)
But it is doubted with me whether a permanent funded debt is beneficial or not to any country.
The same effect must be produced that has taken place in other nations; it must either bring on a national bankruptcy or annihilate her existence as an independent empire. Hence I contend, sir, that a funding system, in this country, will be highly dangerous to the welfare of the republic; it may, for a moment, raise our credit and increase the circulation, by multiplying a new species of currency; but it must, in times afterward, settle upon our posterity a burthen which they can neither bear nor relieve themselves from. It will establish a precedent in America that may, and in all probability will, be pursued by the sovereign authority until it brings upon us that ruin which it has never failed to bring, or is inevitably bringing, upon all the nations of the earth who have had the temerity to make the experiment.
http://oll.libertyfund.org/titles/875
Why relegate our children and grandchildren (and their grandchildren) to becoming debt slaves of socialists?
DEFUND socialist collectives, foreign and domestic.
DEPOPULATE socialists from the body politic.
I disagree. This is a warning that no matter which republican wins they will cut spending and decimate "programs". It's an attempt to start the whining and moaning now about the "disenfranchised" who are going to lose the benefits they "earned" by being born.
It is easy to…
live-free-republic
(and live without debt)
DEFUND
DEPOPULATE
Has a CBO projection ever turned out to be accurate?
Gee, I thought ‘health care reform’ was supposed to fix that. I thought raising our taxes was supposed to fix that.
One of the reasons usury is illegal is that the high rate of interest means the person will never get out of debt. The interest is too much to pay.
We have let the progessives become usurers. The ‘vig’ is too high to pay and the result is the country will surrender all its assets to the government some day.
Jeb will be like his brother and NEVER cut any programs.
His vow is to be liked.
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