Skip to comments.Director of Cong. Budget Office: Federal Spending is “Unsustainable”
Posted on 07/17/2009 11:56:06 AM PDT by Starman417
Will Congress listen before it passes $TRILLIONS in new spending for health care?
This is frightening. Douglas Elmendorf, Director of the Congressional Budget Office posted the following on his blog:
The Long-Term Budget Outlook By Douglas Elmendorf Congressional Budget Office July 16, 2009Democrats considered CBO the gold standard for economic analysis when it's reports were critical of Bush Administration policies. Will they now listen to the warning above?
Today I had the opportunity to testify before the Senate Budget Committee about CBOs most recent analysis of the long-term budget outlook.
Under current law, the federal budget is on an unsustainable path, because federal debt will continue to grow much faster than the economy over the long run. Although great uncertainty surrounds long-term fiscal projections, rising costs for health care and the aging of the population will cause federal spending to increase rapidly under any plausible scenario for current law. Unless revenues increase just as rapidly, the rise in spending will produce growing budget deficits. Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress economic growth in the United States. Over time, accumulating debt would cause substantial harm to the economy. ... Measured relative to GDP, almost all of the projected growth in federal spending other than interest payments on the debt stems from the three largest entitlement programsMedicare, Medicaid, and Social Security. For decades, spending on Medicare and Medicaid has been growing faster than the economy. CBO projects that if current laws do not change, federal spending on Medicare and Medicaid combined will grow from roughly 5 percent of GDP today to almost 10 percent by 2035. By 2080, the government would be spending almost as much, as a share of the economy, on just its two major health care programs as it has spent on all of its programs and services in recent years.
In CBOs estimates, the increase in spending for Medicare and Medicaid will account for 80 percent of spending increases for the three entitlement programs between now and 2035 and 90 percent of spending growth between now and 2080. Thus, reducing overall government spending relative to what would occur under current fiscal policy would require fundamental changes in the trajectory of federal health spending. Slowing the growth rate of outlays for Medicare and Medicaid is the central long-term challenge for fiscal policy.
(Excerpt) Read more at floppingaces.net ...
In other breaking news, the Japanese have attacked Pearl Harbor....
Douglas Elmendorf must be a brave man.
Lord only knows what sort of Chicago-style threats and intimidation he’s being subjected to...
What this story needs is a visit from Captain Obvious!
Only til they print more money, then every thing will be just fine. If you doubt this just go ask the Federal Reserve!!
“We have to keep spending money to keep from going broke”
Obama to fire head of CBO.
Max Baucus, are you listening?
Bump to send on
Slowing the growth rate of outlays for Medicare and Medicaid is the central long-term challenge for fiscal policy.
Start a war and make Medicare/Medicade recipients eligible for the draft.
Breaking News from the CBO: The Pope IS Catholic. We repeat, the Director of the Congressional Budget Office just announced Pope Benedict XVI is Catholic.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.