US debt will double GDP in 25 years

by NW Spotlight

The Hill is reporting that a dire report by the nonpartisan Congressional Budget Office (CBO) is projecting that the US debt will be twice the size of the U.S. economy by the year 2037.

“The new CBO report warns that increased entitlement spending driven by the retirement of the baby boomers and insufficient revenue is making the long-term outlook for the national debt increasingly dire.”

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Posted by at 08:00 | Posted in Federal Budget | 13 Comments |Email This Post Email This Post |Print This Post Print This Post
  • JoelinPDX

    I suppose we’ll be hearing from the liberal leftists about how we all need to pay more in income taxes and increase the dole. But for anyone with a GOP ethic this is pretty much expected.

    • valley person

       Either increase taxes, cut the income of the geezers, or learn to love the debt. If you opt for #1, then start with all those Tea Party oldsters. Out of patriotism they should be willing to take a 25% cut tomorrow right?

      • JoelinPDX

        Or start with all of those triple-dipping government pensioners… that makes a whole lot more sense.

        • David from Mill City

           

           So you don’t believe
          in living up to contractual obligations? If an individual qualified for multiple
          pensions because he worked for multiple employers, be they public or private,
          he is entitled to and should be paid those pensions.

    • David from Mill City

       

      To start with Social Security and Medicare are not the “dole”
      they are insurance programs which the recipients paid premiums (payroll taxes) for,
      and are now or in the future will collect.

      Second, the fact that the Federal Government squandered the
      money they borrowed from Social Security on unfunded tax breaks for the rich
      and unnecessary wars  does not eliminate
      the Governments obligation to Social Security and Medicare recipients current
      and future.

      Lastly  taxing all
      potential  Social Security recipients at
      the same rate ( remove the current cap) would correct the short fall.

      • JoelinPDX

        Hmmm, did I ever say SS and Medicare were the dole? I don’t remember saying any thing like that. David apparently thinks they are, since he brought them up. I was thinking more along the lines of Medicaid and food stamps. Do you claim those programs aren’t the dole David?

        • David from Mill City

           

          Let’s see, the article referenced entitlements,  you responding to the article used the term “dole”.  Given that in many conservative circles entitlements
          such as Social Security and Medicare are equated with “dole” you can see were
          the confusion came from.

          As to Medicaid, that is an assistance program which is among
          other things slowing the increase of your health care costs.

          Food Stamps are also an assistance program, made necessary
          by the current state of the economy (Republican efforts to increase unemployment)
          and the reliance of many US employers on subsidies from their employees.

        • David Appell

          Two-thirds of Washington’s subsidies go to the wealthiest 40 percent, according to journalist Edward Luce in his new book “Time to Start Thinking: American in the Age of Descent.” Less than 4% goes to the poorest fifth.

  • David from Mill City

     

    And exactly how is this is a problem?  As long as the National Debt is in US
    Dollars, the Debt is not a major problem that urgently needs addressing now.
    The Jobs Crises is the urgent problem, and it is going to take substantial
    Government spending for us to get out of it soon. And yes that spending will
    increase both the Debt and the Deficit.  Which
    is to be preferred over the Republican solution which is to turn our tepid
    recovery into a major economic depression.

    • David Appell

      I agree. With economic growth the debt will take care of itself. Hence growth is the immediate priority, and that means jobs. Sustained unemployment will rot out a country much faster than debt ever will. 

      I’ve been hearing warnings about the federal debt for at least 30 years — from the very politicians who then run up the debt when in office. I’m starting to wonder if the debt really matters that much, and what it says (and doesn’t say) about health of a macro-economy. 

      I suspect — based on the last 30+ years — that it means far less than most people say.

      • David from Mill City

         

        As long as the US National Debt is in US Dollars there is no
        real problem.  The “US Debt Crisis” is an
        artificial creation of the Conservative Right to justify disrupting President
        Obama’s efforts to get this nation back to work.

        National Debt is only a problem when it is not in the sovereign
        currency of the indebted country.  Greece’s
        problem is that its debt is in the Euro a currency it does not control.

        • valley person

           I think we have to be careful to draw too many inferences on the sustainability of a national debt. As you say, in Greece’s case (and Spain, Ireland, etc) their core problem is they can’t borrow in their own currency, so can’t adjust to bond interest rates by devaluing.

          But I wouldn’t conclude that just because you have your own currency you can simply pile debt on debt. Ultimately if debt growth out paces GDP growth, then you end up in trouble and can only exit through a period of painful higher inflation.

          • David from Mill City

             

            Over the long run, and assuming that the US Economy does not
            rebound from the current economic situation, an ever rising national debt could
            be a problem.  If we experience a robust
            rebound, it will be longer if ever before it becomes a problem. There being two
            ways to affect the Debt to GDP ratio, either lower the Debt or raise the GDP.

            Currently our national economic problem is a lack of consumer
            demand not the National Debt or increasing deficits.  To create consumer demand is going to require increased
            Government Spending not the decreased spending that the Republicans are pushing
            for.

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