Post by Origanalist on Jan 26, 2015 20:25:47 GMT -8
Conn Carroll | Jan 26, 2015
Federal deficits may have been falling since the end of the recent recession, but thanks to spending increases in major health care programs, including Obamacare, deficits are set to explode in 2017, according to a new report by the Congressional Budget Office.
Thanks to the recent recession and President Obama's trillion dollar stimulus, the federal budget deficit reached an all time $1.4 trillion high in 2009. Then, as the economy slowly improved and Obama's stimulus trickled to end, the deficit began to fall. According to the CBO, the deficit will continue to fall to $467 billion in 2016.
Immediately after Obama leaves office, however, deficits are expected to rise steadily thanks mostly to growth in mandatory health care spending programs like Obamacare. By 2025 the CBO estimates that our nation's federal deficits will again top $1 trillion a year. For comparison's sake the highest deficit ever under President Bush was $458 billion.
continued...townhall.com/tipsheet/conncarroll/2015/01/26/cbo-deficits-to-explode-as-obama-leaves-office-n1948435
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The federal budget deficit, which has fallen sharply
during the past few years, is projected to hold steady relative
to the size of the economy through 2018. Beyond
that point, however, the gap between spending and revenues
is projected to grow, further increasing federal debt
relative to the size of the economy—which is already
historically high.
Those projections by the Congressional Budget Office,
based on the assumption that current laws governing
taxes and spending will generally remain unchanged, are
built upon the agency’s economic forecast. According to
that forecast, the economy will expand at a solid pace in
2015 and for the next few years—to the point that the
gap between the nation’s output and its potential (that is,
maximum sustainable) output will be essentially eliminated
by the end of 2017. As a result, the unemployment
rate will fall a little further, and more people will be
encouraged to enter or stay in the labor force. Beyond
2017, CBO projects, real (inflation-adjusted) gross
domestic product (GDP) will grow at a rate that is notably
less than the average growth during the 1980s and
1990s.
Rising Deficits After 2018 Are
Projected to Gradually Boost Debt
Relative to GDP
CBO estimates that the deficit for this fiscal year will
amount to $468 billion, slightly less than the deficit in
2014 (see Summary Table 1). At 2.6 percent of GDP, this
year’s deficit is projected to be the smallest relative to the
nation’s output since 2007 but close to the 2.7 percent
that deficits have averaged over the past 50 years.
Although the deficits in CBO’s baseline projections
remain roughly stable as a percentage of GDP through
2018, they rise after that. The deficit in 2025 is projected
to be $1.1 trillion, or 4.0 percent of GDP, and cumulative
deficits over the 2016–2025 period are projected to
total $7.6 trillion. CBO expects that federal debt held by
the public will amount to 74 percent of GDP at the end
of this fiscal year—more than twice what it was at the end
of 2007 and higher than in any year since 1950 (see
Summary Figure 1). By 2025, in CBO’s baseline projections,
federal debt rises to nearly 79 percent of GDP.
www.cbo.gov/sites/default/files/cbofiles/attachments/49892-Outlook2015.pdf
Federal deficits may have been falling since the end of the recent recession, but thanks to spending increases in major health care programs, including Obamacare, deficits are set to explode in 2017, according to a new report by the Congressional Budget Office.
Thanks to the recent recession and President Obama's trillion dollar stimulus, the federal budget deficit reached an all time $1.4 trillion high in 2009. Then, as the economy slowly improved and Obama's stimulus trickled to end, the deficit began to fall. According to the CBO, the deficit will continue to fall to $467 billion in 2016.
Immediately after Obama leaves office, however, deficits are expected to rise steadily thanks mostly to growth in mandatory health care spending programs like Obamacare. By 2025 the CBO estimates that our nation's federal deficits will again top $1 trillion a year. For comparison's sake the highest deficit ever under President Bush was $458 billion.
continued...townhall.com/tipsheet/conncarroll/2015/01/26/cbo-deficits-to-explode-as-obama-leaves-office-n1948435
------------------------------------------------------------------------------------------------------------------------------------------------
The federal budget deficit, which has fallen sharply
during the past few years, is projected to hold steady relative
to the size of the economy through 2018. Beyond
that point, however, the gap between spending and revenues
is projected to grow, further increasing federal debt
relative to the size of the economy—which is already
historically high.
Those projections by the Congressional Budget Office,
based on the assumption that current laws governing
taxes and spending will generally remain unchanged, are
built upon the agency’s economic forecast. According to
that forecast, the economy will expand at a solid pace in
2015 and for the next few years—to the point that the
gap between the nation’s output and its potential (that is,
maximum sustainable) output will be essentially eliminated
by the end of 2017. As a result, the unemployment
rate will fall a little further, and more people will be
encouraged to enter or stay in the labor force. Beyond
2017, CBO projects, real (inflation-adjusted) gross
domestic product (GDP) will grow at a rate that is notably
less than the average growth during the 1980s and
1990s.
Rising Deficits After 2018 Are
Projected to Gradually Boost Debt
Relative to GDP
CBO estimates that the deficit for this fiscal year will
amount to $468 billion, slightly less than the deficit in
2014 (see Summary Table 1). At 2.6 percent of GDP, this
year’s deficit is projected to be the smallest relative to the
nation’s output since 2007 but close to the 2.7 percent
that deficits have averaged over the past 50 years.
Although the deficits in CBO’s baseline projections
remain roughly stable as a percentage of GDP through
2018, they rise after that. The deficit in 2025 is projected
to be $1.1 trillion, or 4.0 percent of GDP, and cumulative
deficits over the 2016–2025 period are projected to
total $7.6 trillion. CBO expects that federal debt held by
the public will amount to 74 percent of GDP at the end
of this fiscal year—more than twice what it was at the end
of 2007 and higher than in any year since 1950 (see
Summary Figure 1). By 2025, in CBO’s baseline projections,
federal debt rises to nearly 79 percent of GDP.
www.cbo.gov/sites/default/files/cbofiles/attachments/49892-Outlook2015.pdf
