The Congressional Budget Office (CBO) today released a report warning that the federal deficit’s short-term shrinkage doesn’t mean we’re in the clear for avoiding long-term fiscal problems.
Speaking at the State University of New York-Binghamton on Friday, President Obama assured the audience that there is no “urgent deficit crisis.” Meanwhile, spending remains at historic highs, economists continue to raise concern about long-term deficits, and the Congressional Budget Office is warning that if the president’s push to reverse the sequester goes through, it will increase the risk of a fiscal crisis down the road.
Many in Washington are pointing to the latest Congressional Budget Office (CBO) report to suggest the deficit problem is “pretty much solved” for the next 10 years. But did the CBO really say that? Not quite.
While some economists see deficit emphasis as an impeding recovery, the Congressional Budget Office says the only thing worse for the economy would be no deficit emphasis.
President Obama and other lawmakers have been insisting, over and over, that a balanced budget deal must include more revenue. Yet, the federal government is projected to collect more revenue in 2013 than ever before.
National Debt “Historically High.” The national debt is $16.7 trillion and the Congressional Budget Office (CBO) warns that “federal debt held by the public is projected to remain historically high relative to the size of the economy for the next decade.”
“We don’t have an immediate crisis in terms of debt,” President Barack Obama said today, during a discussion of the federal deficit and budget talks with Congress in an interview aired by ABC News’ “Good Morning America.”’ “In fact, for the next ten years, it’s gonna be in a sustainable place.”
In his interview with “Good Morning America,” President Obama declared “we don’t have an immediate crisis in terms of debt.” Yet, the Congressional Budget Office has previously stated that debt held by the public is projected to remain historically high for the next decade.
The federal budget process is one of the most complex and confusing issues for every day Americans to follow. It is made no easier by politicians who offer confusing rationales for and explanations of their spending choices.
The Congressional Budget Office (CBO), recently released a new analysis on the impact of going over the “fiscal cliff,” a combination of tax hikes and spending cuts set to automatically go into effect on Jan. 2, 2013. The study confirms that failing to take action would plunge America back into a recession and estimates that the unemployment rate would spike back up to 9.1 percent.