Posted on 06/26/2019 11:53:25 AM PDT by Tolerance Sucks Rocks
A new government report has given us a glimpse into our nation’s fiscal future, and the outlook is grim. Absent major reforms, America’s debt will only continue to balloon.
The Congressional Budget Office released its updated long-term budget report on Tuesday, which projects the nation’s fiscal situation for the next 30 years.
Despite the strong economy, the nation remains in a precarious and unsustainable budget position, just as it was last year. Debt held by the public is set to rise to nearly one and a half times the size of the economy in the coming decades.
The report also highlights the high stakes of issues sitting before Congress—namely, whether or not lawmakers pass another budget deal to raise spending caps for fiscal year 2020 and beyond.
The current proposal put forth by House Democrats would raise spending by at least $357 billion over two years, driving long-term debt even higher.
The bottom line is this: If Congress is to avoid a debt crisis, it must implement strong spending restraints now. The first step is to reject the deal proposed by House Democrats. Instead, Congress ought to prioritize essential federal functions, like national defense, and cut wasteful and duplicative domestic programs that the federal government should have no role in.
Over the long term, cuts to discretionary spending won’t be enough to stabilize the debt.
The true drivers of debt are our major entitlement programs: Social Security, Medicare, and Medicaid. Reforming these programs is essential if the country is to avoid a debt crisis and preserve these programs for the long term.
Here are four key takeaways from the report:
(Excerpt) Read more at dailysignal.com ...
The true drivers of debt are our major entitlement programs: Social Security,
Social Security is NOT an entitlement.
I, and my employers, have paid into it for the past 33 years. That means, the money in that account is earned, and MINE. NOT an entitlement that is given to anyone without earning it.
Congress screwed us by not reforming Social Security 20-25 years ago when they could have. (remember Al Gore’s ‘lockbox’?)
Exactly. The Federal Reserve kept lending and savings rates artificially low.
AOC says it’s not a problem...just print more money. Really? This from someone who is supposed to have an econ major from BU. If I were BU, I’d pull her degree.
And where were they when the debt MORE THAN DOUBLED in just 8 years under Obama? Where were the stories and warnings?
Nothing will happen. Just add a few extra digital zeros to the balance sheet via computer. Who uses cash anymore, I’m beginning to believe that with virtual money, no one will catch on.
It wasn’t LBJ. I’ve researched the debt and deficit extensively. The debt and deficit started to skyrocket under Reagan and pretty much continued (with a little bit of leveling off under Clinton) under all other Presidents. Hate to say it but the tax and spend policy of the conservatives is what has really caused this problem. We need to cut spending and raise taxes to get this problem under control.
Obama’s eight years saw debt-to-GDP increased at twice the rate of Reagan’s eight years.
I’m certain that the Daily Signal did write stuff about it. CNS News certainly did.
“How the US government is able to continue to borrow at such low rates I’ve never understood.”
At one point under Obama Moody’s downgraded US debt. All of a sudden they were dealing with a bunch of federal investigations.
Funny that.
L
Your money is gone. It helped to pay off 33 years’ worth of old people’s needs. Furthermore, any surpluses were used for other government functions. There is no “money in the bank” with SS.
“I, and my employers, have paid into it for the past 33 years. That means, the money in that account is earned, and MINE.”
Nope. Fleming v Nestor decided that.
They don’t owe you jack.
L
Like it or not, SS is a Ponzi scheme that we are FORCED to fund.
This is like saying in 1960 that the debt would get to one trillion dollars. You would have been put into an insane asylum.
But yes, we will see one quadrillion dollars in debt before we die (unless we will die soon).
But we will have smartphones and some nice Yacht Rock to listen to.
So not so bad.
And at that point, I will be paying $100 for a bottle of beer.
Tolerance Sucks Rocks wrote:
Like it or not, SS is a Ponzi scheme that we are FORCED to fund.
Your money is gone. It helped to pay off 33 years’ worth of old people’s needs. Furthermore, any surpluses were used for other government functions. There is no “money in the bank” with SS.
yes, I know that. It just pisses me off. If I was given HALF that money, and put it into my 403(b) retirement account with TIAA-CREF, I’d be in a much better place and might could possibly retire at the age of 65 or so... now? I’ll be lucky to retire at 75.
They don’t owe you jack.
L
Yes, I know. It sucks, and it pisses me off.
Amen.
Raising taxes will harm the economy.
We need to cut spending. Both parties spend too much; Democrats do it more.
Again, the numbers I cited are valid.
Not necessarily. In Clinton’s first budget he asked for a tax increase which was passed with no republicans voting for it. The economy still took off and he actually balanced the budget and was on track to reduce the debt.
You could cut all spending except for national defense, social security, Medicare and Medicaid, and interest on the national debt and we would still have to borrow money to cover that. And if your response is to get rid of social security and Medicare and Medicaid, well good luck with that.
I don’t like the idea of raising taxes. After researching the deficit and debt I realize that is the only way we are ever going to get our fiscal house in order. However, we need to raise taxes without increasing spending to do it.
If conservatives truly want to be the party of fiscal responsibility then we need to pay for the programs Americans have said they want instead of putting our children and grandchildren into debt.
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