Skip to comments.The 2013 Long-Term Budget Outlook
Posted on 10/08/2013 9:17:44 PM PDT by seeker41
Between 2009 and 2012, the federal government recorded the largest budget deficits relative to the size of the economy since 1946, causing federal debt to soar.
Federal debt held by the public is now about 73 percent of the economys annual output, or gross domestic product (GDP).
That percentage is higher than at any point in U.S. history except a brief period around World War II, and it is twice the percentage at the end of 2007.
Full Text at Link http://www.cbo.gov/publication/44521
(Excerpt) Read more at cbo.gov ...
It is scary, perhaps FReeper brains can collaborate the meaning and consequences
Whatever it is it is wrong. The massive amounts of time and money spent on this is close to a waste because it is clouded by political direction.
Sure, I believe we are going to be able to reduce military spending below present levels far into the future. Social security is sustainable? Not. Euphemism for obamacare that just increases for as far into the future as it can go... unsustainable. Interest rates are going to remain low? Not, again. Someday debt service on this monster will take off like a rocket.
Unsustainable. A business nor an economy can harvest more than 20% of production for overheads and survive. We are headed for 25% or more. It won’t work. Spending must be pared down to historical levels of the mid teens as a percentage of GDP.
The problem with CBO report is that it assumes a growth rate of over 5% a year. We haven’t seen that kind of sustained growth rate in many, many years....