Failure to Enact a Federal BBA Could Endanger Medicare
State legislatures have Article V power to solve this conundrum
A November 11 article in the Wall Street Journal says the Congressional Budget Office projects the federal government will spend “more on interest than it spends on Medicaid in 2020; more [on interest] in 2023 than it spends on national defense; and more in 2025 than it spends on all nondefense discretionary programs combined, from funding for national parks to scientific research, to health care and education, to the court system and infrastructure”.
The article, by Kate Davidson and Daniel Kruger, says “the sheer scale of debt being accumulated by the federal government has put the US on a path of rising interest costs that in the years to come could crowd out other government spending priorities and rattle markets.
“In 2017, interest costs on federal debt of $263 billion accounted for 6.6% of all government spending and 1.4% of gross domestic product, well below averages of the previous 50 years. The Congressional Budget Office estimates interest spending will rise to $915 billion by 2028, or 13% of all outlays and 3.1% of gross domestic product.”
The WSJ writers report that, “The US Treasury is set to issue twice as much debt in 2018 as it did in 2017, according to Treasury Department borrowing estimates.” Read their article HERE.