Nonsequitur: Growing Deficits and Debt

January 27, 2016

In CBO’s projections, growing deficits drive up debt over the next decade, as spending rises and revenues remain relatively flat as a share of the economy… If current laws generally remained unchanged, the deficit would grow over the next 10 years, and by 2026 it would be considerably larger than its average over the past 50 years, CBO projects. Debt held by the public would also grow significantly from its already high level.

The Congressional Budget Office released it annual report on Monday.  It reports an increase of deficit spending this year of about $15 billion ($544 billion total) and projects continues increases in deficit spending.  Of course these deficits have an effect on federal debt.  In 2008, the national debt was 39.3% of the GDP.  Since then it has grown to 73.6% of the GDP and should reach 75.6% this year.  The CBO estimates it will climb to 86% in 2026.

You can read the full CBO report here.

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