CBO Outlook: Trillion Dollar Fed Deficits are Here to Stay –
By Stuart MacPhail – March 2020
On February 6 Peter Klensch, writing on the WasteWatcher blog, reported on the January 28 report released by the Congressional Budget Office (CBO)… its annual Budget and Economic Outlook for 2020 to 2030.
Klensch summarizes the CBO report as follows: “CBO estimates a 2020 deficit of $1 trillion, a $103 billion increase from January 2019. Trillion-dollar deficits will remain and reach all-time highs by the end of the 10-year budget period. From 4.6 percent in 2020, budget deficits will rise to 5.4 percent of gross domestic product (GDP) in 2030 and never dip below 4.3 percent of GDP. Only during World War II has the debt remained above 4.0 percent of GDP for more than five consecutive years. Total deficits over the decade will reach $13.1 trillion, raising the national debt to roughly $31 trillion by 2030.” Read his report HERE.
Meanwhile the Heritage Foundation produced its own review of the CBO report, written by Justin Bogie.
Bogie says, “The latest report confirms what the Congressional Budget Office has been telling lawmakers for years: The nation is hurtling toward a spending-driven debt crisis. Without major reforms to mandatory spending programs, it is not a question of if, but when, all Americans will feel the financial impacts of Congress’ spending addiction.” Read Heritage’s 5 Takeaways From the Latest Budget Projections HERE.