CBO Report Illustrates The Cause Of Our Debt Problem: It’s The Spending, Stupid!

[Kamaji]

CBO Report Illustrates The Cause Of Our Debt Problem: It’s The Spending, Stupid!

The combination of rising debt and rising interest payments creates a ‘doom loop,’ where interest accumulates faster than the interest gets paid down.

BY: CHRISTOPHER JACOBS
JULY 05, 2023

As it has often had to do over the past several years, the Congressional Budget Office (CBO) recently released a report illustrating the fiscal problems looming dead ahead for the United States. Its most recent analysis, an annual report estimating the long-term budget outlook, illustrated why Democrats’ “solution” to the problem — namely, massive tax increases — won’t solve our budgetary woes.

Record Spending, Record Debt
According to the CBO report, the federal government faces massive deficits over the next 30 years (the timespan of the analysis). Specifically, “deficits are projected to grow almost every year over the next three decades.” As a percentage of the economy, they would average more than twice the average deficit over the past half-century, growing to reach 10 percent of the entire economy in 2053.

What will cause these deficits? As the CBO report notes, it’s not low levels of federal revenues. In fact, the budget gnomes believe that “revenues measured as a percentage of GDP are projected to be higher than they have been, on average, in recent decades.”

Instead, spending will drive our deficits. Federal outlays will reach levels seen only twice in our nation’s history: during World War II, and during the Covid lockdowns. Spending will rise faster than revenues almost every year, leading to greater and greater federal deficits.

*  *  *

Source:  https://thefederalist.com/2023/07/05/cbo-report-illustrates-the-cause-of-our-debt-problem-its-the-spending-stupid/

[LMAO]

They don’t say

It’s too bad that there’s not any candidates running that are putting this issue front and center and what the end results will look like if we don’t do something. This issue alone is enough to bury our country in the long-term over any other issue. You can’t defeat math.

Lots of blame. Just no plans. And the two leading candidates from both parties are talking about how they want to make the situation worse.

[DefiantMassRINO]

Why stop spending when someone else will end up paying the tab later?

The spending won't decrease until the annual cost to service the debt cripples Congress' ability to appropriate funds to entitlement programs and defense.

Every time the Fed raises rates, holders of long-term Government debt (bank, insurance companies) will risk becoming more insolvent.

[libertybele]

They don’t say

It’s too bad that there’s not any candidates running that are putting this issue front and center and what the end results will look like if we don’t do something. This issue alone is enough to bury our country in the long-term over any other issue. You can’t defeat math.

Lots of blame. Just no plans. And the two leading candidates from both parties are talking about how they want to make the situation worse.

Here is an example of DeSantis' budget in FL - slashing over 500 million. 

He's supposedly behind in the polls, but I still think he'd make a great conservative president.  He has a track record that speaks volumes.  Yes it is reflective of his governorship in FL, but I would anticipate that he'd push to do the same for our country.

https://www.tallahassee.com/story/news/politics/2023/06/15/desantis-signs-florida-budget-details-hazy-amid-presidential-politics/70295572007/

[Bigun]

The last presidential administration in which federal spending was actually cut was the Calvin Coolidge administration. Since then, we've seen nothing but a long series of reductions in the rate of growth which have been called budget cuts by clever politicians but are in reality no such thing.