Earlier this week the Congressional Budget Office (CBO) released its updated outlook for the federal budget. Here are ten lessons it teaches us about the troubled state of federal finances.
1.Federal debt is projected to grow faster than the economy can sustain. During President Obama’s time in office the nation has engaged in a protracted experiment in fiscal stimulus, manifested in five years of record federal budget deficits. As a consequence federal debt has risen dramatically relative to our economic output. In President Bush’s last full year in office, federal debt was 40.5% of GDP. This year it’s 76.3%. Economists are deeply divided over the wisdom of current deficit-spending. Some argue that the mounting debt and slow economic recovery demonstrate the policy’s imprudence, while others argue that the government should be doing still more deficit-spending. Regardless, it is incontrovertible that the economy remained weak as federal debt soared. CBO’s latest projections indicate that under current law not only will we fail to bring federal debt back to historical norms, but that it will ultimately rise faster than the economy can sustain.
Federal DEBT Accumalation is Unsustainable
Donate to Illinois Tea Party
Take Action Today
- NOTE: The opinions expressed in items posted on this site do not necessarily represent the opinion of the Illinois Tea Party or any of the groups affiliated with Illinois Tea Party.
Search Site by Keyword
Sort News Items by Catagory
Click for Truth About Obamacare DVD
- Illinois’ own Kim Jong-un | Politics Now chicagonow.com/politics-now/2… 1 day ago
- I just supported Calls 4 Paul on @ThunderclapIt // @jennybethm thndr.me/0UQWWQ 3 days ago
- Yes, I have proof: Obama hates white people allenbwest.com/allen/can-now-… via @AllenWest 5 days ago
Illinois Tea YouTube
US National Debt Clock