New CBO Report Warns U.S. Debt Set to Exceed Record High of 109 Percent of GDP in 14 Years
Jim Landry | 571.970.6490
NEW CBO REPORT WARNS U.S. DEBT SET TO EXCEED RECORD HIGH OF 109 PERCENT OF GDP IN 14 YEARS
U.S. at risk of fiscal crisis that could rival Europe’s without major spending changes
ARLINGTON, VA – The nonpartisan Congressional Budget Office (CBO) today released a report warning that if current spending habits continue, U.S. public debt in relation to the economy will more than double in 25 years. Furthermore, in just 14 years it will exceed 109 percent of GDP, a record high last seen shortly after World War II, if Washington continues the spending habits it has had the past few years. Many economists believe public debt that approaches 100 percent of GDP can induce a fiscal crisis like the one happening in European countries today, according to The Hill.
Entitlement spending and lawmakers’ decisions regarding fiscal-cliff policies will determine the speed at which the debt will continue to grow, according to the CBO report.
Gretchen Hamel, executive director of Public Notice, issued the following statement:
There has been a lot of debate about whether or not the U.S. is heading in the same direction as Europe. This report is a confirmation that the U.S. is at risk of sliding into a fiscal crisis that could rival Europe’s.
While debt-to-economy ratios are not the only indicator of a nation’s fiscal health, they are an important indicator of how bloated Washington’s appetite for out-of-control spending has become. The CBO report is a warning sign that Washington’s irresponsible, budgetless spending is dangerous and unsustainable.
How similar are the fiscal and economic climates in Greece and the U.S.? Click here to see an infographic comparing each country’s demographics, overspending, credit and leadership.
For more information visit www.bankruptingamerica.org.
To schedule an interview with Gretchen Hamel contact Jim Landry at 571.970. 6490.
BankruptingAmerica.org is an educational project of Public Notice, an independent, nonpartisan, non-profit, 501(c)(4) organization dedicated to providing facts and insight on the effects public policy has on Americans’ financial well-being.