Commentary
Even before the recent spate of spending legislation, the authoritative Congressional Budget Office (CBO) warned of the precarious state of Washington’s finances. Its figures show that the relentless growth in entitlements will push up budget deficits and add to the nation’s already heavy accumulation of public debt.
By 2032, the CBO concluded, outstanding government debt held by the public will rise to 110 percent of the nation’s gross domestic product (GDP) and then to 185 percent by mid-century, far higher than most any time in the nation’s history.
Here, in broad strokes, is what the CBO expects. Federal revenues from all sources will grow in tandem with the economy, taking, on average, slightly over 18 percent of GDP each year. The spending side of the ledger will expand faster. Federal outlays will jump from 23.8 percent of the economy this year to 25.8 percent by the mid-2030s. They will then climb to about 28.9 percent by mid-century, a relative expansion of 5.1 percentage points….