Commentary
It makes for a depressing reading. The Congressional Budget Office (CBO) anticipates that federal spending will continue to outstrip revenues.
Historically large annual deficits will add to the nation’s already heavy accumulation of public debt so that by 2032, outstanding government debt held by the public will rise to 110 percent of the nation’s gross domestic product (GDP) and then rise further to 185 percent by mid-century, far higher than most any time in history. The driver is the growth of entitlements spending.
The CBO projects that federal revenues from all sources will grow in tandem with the economy, taking on average a historically consistent 18 percent of GDP each year. The spending side, however, rises disproportionately from 23.8 percent of the economy this year to 25.8 percent by the mid-2030s, to 28.9 percent by mid-century….