America’s Fiscal Debt Bomb Caused by the Welfare State – The Future of Freedom Foundation

The Federal debt has now crossed the $19 trillion mark. When George W. Bush entered the White House in 2001, Uncle Sam’s debt stood at $5 trillion. When President Bush left office in January of 2009, it had increased to $10 trillion. Now into seven years of Barack Obama’s presidency, the Federal debt has almost doubled again.And it is going to get much worse, according to the Congressional Budget Office. On January 26, 2016, the CBO released it latest “Budget and Economic Outlook” analysis for the next ten years, from 2016 to 2026.\

Americas Fiscal Debt Bomb Caused by the Welfare State

The CBO’s economic projections are way off base-think of the deficits ahead if the economy goes into a serious recession, which is inevitable and is unfolding now.

The Economic Outlook for 2016 Through 2020 If current laws governing federal taxes and spending generally remained in place, by CBO’s projections, real GDP would grow by 2.7 percent this calendar year and by 2.5 percent in 2017, as measured by the change from the fourth quarter of the previous year (see Summary Figure 2). From 2018 through 2020, the economy would grow at an average annual rate of 2.0 percent, CBO projects.

cbo chart

cbo 2016 Outlook