President Obama has promised that the health care bill will be “deficit neutral.” Regardless of whether you believe that or not (I don’t), that’s not going to be enough.
A few days ago, the Congressional Budget Office (CBO) released something called the “Long-Term Budget Outlook.” According to the CBO, the following will happen if we don’t change our ways:
- Next year, the debt will be above 60% of GDP.
- By 2023, the debt will exceed 100% of GDP
- By 2076, the debt will be above 6.5 times GDP
- “Starting in the 2060s, projected deficits become so large and unsustainable that CBO’s textbook growth model cannot calculate their effects.”
And that’s being optimistic. This assumes that interest rates on government bonds remain low — which they won’t — and that economic growth grows at historical levels — which I doubt.
To which Leonard Burman says,
It’s time to make some hard choices. Or we’re doomed.
Somehow — even in the face of all of this! — we’re looking at massive increases in entitlements and a continuation of foreign wars. If things keep going the way they are, I’m putting my money on “we’re doomed.”Published in