Mar 31, 2017
Freedom Partners Analysis: CBO Confirms U.S. Fiscal Path Unsustainable
Post by Jeff Brownlee
Arlington, VA – Yesterday, the Congressional Budget Office (CBO) released its 2017 Long-Term Budget Outlook which projects federal spending, tax collections, and various economic indicators over the next 30 years. According to a new Freedom Partners analysis, the CBO report presents a dim forecast of increased government spending, trillion dollar deficits, slowed economic growth and unsustainable federal debt.
The Freedom Partners analysis shows that failure to rein in Washington’s overspending, including making reforms to automatic spending programs, will put us on a path to bankruptcy, leading to skyrocketing national debt and a rise in unemployment and poverty for millions of Americans. To understand what this kind of debt and spending can do to an economy, look no further than Argentina and Greece. Both countries piled up large amounts of government debt which had dire consequences for their citizens. Argentina’s unemployment rate ballooned to over 21 percent with more than 57 percent of their population living in poverty, while Greece’s unemployment rate rose from 12 percent to over 23 percent in just three years.
With a new administration, Congress has the opportunity to adapt policies that curb government debt, spur economic growth and reduce regulatory burdens for families and individuals.
Freedom Partners Vice President Of Policy Nathan Nascimento Issued The Following Statement:
“Today’s CBO report confirms the United States is heading down an unsustainable path, which, if continued, could put millions of hardworking Americans’ way of life at risk. The Trump administration and Congress must come together to solve this problem and give the American people the peace of mind that our nation’s fiscal future will be secure for generations to come.”
The 2017 CBO Long-Term Budget Outlook Projections
A Staggering Increase In Government Spending: Annual government spending increases to more than $18 trillion by 2047; while mandatory spending on entitlement programs and net interest increase to nearly three out every four dollars the government spends.
Return of Annual Trillion Dollar Deficits: Annual deficits reach $1 trillion by 2023 and continue to rise leading to a more than $6 trillion annual shortfall by 2047.
Slowed Economic Growth: Average annual economic growth will average only 1.9 percent from 2017-2047.
An Unsustainable Federal Debt: Federal debt held by the public increases to 150 percent of GDP by 2047, representing the highest level in the nation’s history.