The fear, of course, for those of us that understand, at least in a small way, that if nothing is done to stop the bleeding from the treasury our country for the problem of paying for everyone that is now taking their share of Social Security and other guaranteed public funding's, and the million more coming on line in the near future to get their slice of the pie, it becomes a financial fact we will become a just another third world sewer like Venezuela that is in the throes of total collapse and default.
It also becomes clear to the trench dwellers, our congressional representatives are unwilling and or are incapable of making decisions that will turn this financial nightmare around.
Worse, with Republicans in change at all levels of government, one might believe we can count on them to do what they say is necessary to fix the problem, but with the history as our witness over the last decades, Republicans have failed miserably do the right thing when it counts.
You're right, I'm a pessimist. But in the end, again, if history is any predictor of the future, with Republicans in charge, failure to deliver is assured.
How Fast US Public Debt Will Grow If We Don’t Change Course
Romina Boccia / @RominaBoccia /
A fiscal storm has been brewing over America for years, and things are only getting worse.
Publicly held debt—the debt the U.S. is borrowing from credit markets (as opposed to debt owed to federal trust funds like Social Security)—is at its highest level as a percentage of gross domestic product since World War II.
To address the problem, Congress and the president must work together to enact a responsible, pro-growth budget that puts spending and taxes on a sustainable path to balance. Budget cuts in President Donald Trump’s proposal to Congress this week are a key step on that path.
Our Fiscal Condition
America’s annual deficit—the difference between what the government spends and collects in taxes each year—is projected to rise steeply over the coming decade and to continue growing from there.
The deficit is projected to surpass $1 trillion in nominal terms before the 10-year mark, and then to keep rising.
In terms of the size of the economy, deficits are projected to rise from 2.9 percent of gross domestic product this year to 9.8 percent 30 years from now. Deficits reached this level at the height of the Great Recession, but current projections assume the deficit will rise to such levels even without another severe economic crisis. Instead, a combination of demographic changes and health care costs, combined with projected growth in interest on the debt, is driving this fiscal explosion.
Read The Heritage Foundation’s “Blueprint for Balance: A Federal Budget for Fiscal Year 2018”
Absent a course correction, the Congressional Budget Office’s latest projections show the debt will rise from 77 percent of gross domestic product today to a staggering 150 percent of GDP by 2047—almost double the current level.
Such high and growing debt is unsustainable and carries several risks for American prosperity. Research shows that high and growing debt is associated with lower economic growth, which translates into lower business and individual income growth, and fewer o
pportunities for all Americans.
Action Is Required
Trump has put economic growth at the top of his presidential agenda, and this goal is directly reflected in the president’s proposed budget. According to White House sources, “the policies in [Trump’s] Budget would drive down spending and grow the economy. By 2027, when the budget reaches balance, publicly held debt will be reduced to 60 percent of GDP, the lowest level since 2010, when the economic policies of the last administration took effect.”
Trump’s ‘Skinny’ Budget Paves Way for a Leaner Government
Congress and the president should work together to realize a fiscally responsible, pro-growth budget agenda.
This includes immediate cuts to unnecessary and improper spending; reforms to bring health care, welfare, and other entitlement spending under control; and tax reform that reduces harmful distortions to saving, investing, and producing in the United States.
It’s not too late for the U.S. to avert a full fiscal nightmare, and Trump’s presidency and a Republican-controlled Congress present a unique opportunity for long-needed reforms.
Time will tell if the administration and Congress do what the moment calls for.
Note: This article was corrected to remove confusion between the U.S. national debt and publicly held debt.
It also becomes clear to the trench dwellers, our congressional representatives are unwilling and or are incapable of making decisions that will turn this financial nightmare around.
Worse, with Republicans in change at all levels of government, one might believe we can count on them to do what they say is necessary to fix the problem, but with the history as our witness over the last decades, Republicans have failed miserably do the right thing when it counts.
You're right, I'm a pessimist. But in the end, again, if history is any predictor of the future, with Republicans in charge, failure to deliver is assured.
If there is a any light at the end of the tunnel, it will depend on Trump and some cool heads in congress to kick open the door and throw back the heavy curtains fear and pestilence from media and progressive socialist democrats, to flood the room with common sense and logic that might save our country from ruin.
But don't hold your breath waiting for these clowns to make their move as we need ever one on te outside with actual common sense to remain healthy that can take the levers of power when the need is most critical. Say tuned.
Just breath, that's it, just breath -
How Fast US Public Debt Will Grow If We Don’t Change Course
Romina Boccia / @RominaBoccia /
A fiscal storm has been brewing over America for years, and things are only getting worse.
Publicly held debt—the debt the U.S. is borrowing from credit markets (as opposed to debt owed to federal trust funds like Social Security)—is at its highest level as a percentage of gross domestic product since World War II.
To address the problem, Congress and the president must work together to enact a responsible, pro-growth budget that puts spending and taxes on a sustainable path to balance. Budget cuts in President Donald Trump’s proposal to Congress this week are a key step on that path.
Our Fiscal Condition
America’s annual deficit—the difference between what the government spends and collects in taxes each year—is projected to rise steeply over the coming decade and to continue growing from there.
The deficit is projected to surpass $1 trillion in nominal terms before the 10-year mark, and then to keep rising.
In terms of the size of the economy, deficits are projected to rise from 2.9 percent of gross domestic product this year to 9.8 percent 30 years from now. Deficits reached this level at the height of the Great Recession, but current projections assume the deficit will rise to such levels even without another severe economic crisis. Instead, a combination of demographic changes and health care costs, combined with projected growth in interest on the debt, is driving this fiscal explosion.
Read The Heritage Foundation’s “Blueprint for Balance: A Federal Budget for Fiscal Year 2018”
Absent a course correction, the Congressional Budget Office’s latest projections show the debt will rise from 77 percent of gross domestic product today to a staggering 150 percent of GDP by 2047—almost double the current level.
Such high and growing debt is unsustainable and carries several risks for American prosperity. Research shows that high and growing debt is associated with lower economic growth, which translates into lower business and individual income growth, and fewer o
pportunities for all Americans.Action Is Required
Trump has put economic growth at the top of his presidential agenda, and this goal is directly reflected in the president’s proposed budget. According to White House sources, “the policies in [Trump’s] Budget would drive down spending and grow the economy. By 2027, when the budget reaches balance, publicly held debt will be reduced to 60 percent of GDP, the lowest level since 2010, when the economic policies of the last administration took effect.”
Trump’s ‘Skinny’ Budget Paves Way for a Leaner Government
Congress and the president should work together to realize a fiscally responsible, pro-growth budget agenda.
This includes immediate cuts to unnecessary and improper spending; reforms to bring health care, welfare, and other entitlement spending under control; and tax reform that reduces harmful distortions to saving, investing, and producing in the United States.
It’s not too late for the U.S. to avert a full fiscal nightmare, and Trump’s presidency and a Republican-controlled Congress present a unique opportunity for long-needed reforms.
Time will tell if the administration and Congress do what the moment calls for.
Note: This article was corrected to remove confusion between the U.S. national debt and publicly held debt.
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