Highlights from the Long-Term Budget Outlook
CBO released its latest Long-Term Budget Outlook and projected that the nation’s debts will nearly double as a share of the economy by 2046, reaching 141 percent of Gross Domestic Product. This projection reflects well entrenched demographic and economic trends and intransigence on the part of policymakers to alter America’s fiscal outlook. Compared to last year’s Long-Term Outlook, CBO projects higher deficits and debt. Associated with higher borrowing needs are higher borrowing costs with projected interest payments increasingly swamping other areas of the federal budget. Lastly, these borrowing costs crowd out private investment that will, absent reform, depress incomes for American workers.