CBO says US deficit levels are unsustainable
Posted: 7/18/2014 |
Washington’s failure to contain entitlement spending is biting into the nation’s long-term fiscal outlook, the Congressional Budget Office warned in a Tuesday report that found the nation’s debt would jump to 106 percent of gross domestic product (GDP) in 2039.
The CBO said the rising costs of entitlement programs like Medicare and Social Security as the U.S. population continues to age are the drivers of U.S. debt.
“Debt would be on an upward path relative to the size of the economy, a trend that could not be sustained indefinitely,” the report said.
The nonpartisan watchdog said federal debt now held by the public stands at 74 percent of GDP.
Both that figure and the 25-year debt projection are slight increases from the CBO’s previous estimate, first released in September. The CBO found that U.S. debt was 73 percent of GDP in 2013 and predicted that would rise to 102 percent in 2039.
Source: The Hill