{"id":1964344,"date":"2023-07-05T07:25:01","date_gmt":"2023-07-05T11:25:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cbo-report-illustrates-the-cause-of-our-debt-problem-its-the-spending-stupid\/"},"modified":"2023-07-05T07:28:42","modified_gmt":"2023-07-05T11:28:42","slug":"cbo-report-illustrates-the-cause-of-our-debt-problem-its-the-spending-stupid","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cbo-report-illustrates-the-cause-of-our-debt-problem-its-the-spending-stupid\/","title":{"rendered":"CBO Report: Spending is the Cause of Our Debt Problem!"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcbo-report-illustrates-the-cause-of-our-debt-problem-its-the-spending-stupid%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1964344&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"article-content\">\n<p>As it has often had to do over the past several years, the Congressional Budget Office (CBO) recently released a report illustrating the fiscal problems looming dead ahead for the United States. Its <a href=\"https:\/\/www.cbo.gov\/system\/files\/2023-06\/59014-LTBO.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">most recent analysis<\/a>, an annual report estimating the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrats-work-to-tax-and-spend-even-more-as-federal-debt-deficits-mushroom\/\" title=\"Democrats Work To Tax And Spend Even More As Federal Debt, Deficits Mushroom\">long-term budget outlook<\/a>, illustrated why Democrats\u2019 \u201csolution\u201d to the problem \u2014 namely, massive tax increases \u2014 won\u2019t solve our budgetary woes.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Record Spending, Record Debt<\/strong><\/h2>\n<p>According to the CBO report, the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gao-warns-of-unsustainable-fiscal-future\/\" title=\"GAO Warns of \u201cUnsustainable Fiscal Future\u201d\">federal government faces<\/a> massive deficits over the next 30 years (the timespan of the analysis). Specifically, \u201cdeficits are projected to grow almost every year over the next three decades.\u201d As a percentage of the economy, they would average more than twice the average deficit over the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/activist-investors-are-seizing-companies-to-push-social-justice-measures\/\" title=\"\u2018Activist Investors\u2019 Are Seizing Companies To Push Social Justice Measures\">past half-century<\/a>, growing to reach 10 percent of the entire economy in 2053.<\/p>\n<div class=\"fdrlst__b89e9-paragraph-2-long d-flex justify-content-center\" style=\"margin-left: auto; margin-right: auto; text-align: center; \" id=\"fdrlst__b89e9-200069678\">\n<div id=\"div-gpt-ad-1379703300879-0\" class=\"mb-30\"><\/div>\n<\/div>\n<div class=\"fdrlst__b89e9-e670a0ee568925e657cf060855f7b503 fdrlst__b89e9-paragraph-2\" id=\"fdrlst__b89e9-e670a0ee568925e657cf060855f7b503\"><\/div>\n<p>What will cause these deficits? As the CBO report notes, it\u2019s not low levels of federal revenues. In fact, the budget gnomes believe that \u201crevenues measured as a percentage of GDP are projected to be higher than they have been, on average, in recent decades.\u201d<\/p>\n<p>Instead, spending will drive our deficits. Federal outlays will reach levels seen only twice in our nation\u2019s history: during World War II, and during the Covid lockdowns. Spending will rise faster than revenues almost every year, leading to greater and greater federal deficits.<\/p>\n<figure class=\"wp-block-image size-full\"><\/figure>\n<p>Rising deficits will bring with it rising levels of debt. According to CBO, federal debt as a share of GDP will reach an all-time high in 2029, exceeding levels during and after World War II. But even after reaching 107 percent of the economy six years from now, the debt will rise still further, hitting 181 percent of GDP 30 years from now.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Impending \u2018Doom Loop\u2019?<\/strong><\/h2>\n<p>All that debt will lead to higher interest costs, such that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-inflation-is-only-the-beginning-the-real-problem-is-far-far-worse\/\" title=\"Biden\u2019s Inflation Is Only The Beginning. The Real Problem Is Far, Far Worse.\">net interest costs<\/a> will nearly triple over the coming three decades after they have already risen sharply over the past two years. By 2051, CBO estimates, we will pay more in interest on the national debt than we will spend on Social Security.<\/p>\n<div class=\"fdrlst__b89e9-6f5590202ad3a9ec9e9d71fb15d6a8aa fdrlst__b89e9-paragraph-6\" id=\"fdrlst__b89e9-6f5590202ad3a9ec9e9d71fb15d6a8aa\"><\/div>\n<p>The combination of rising debt and rising interest payments raises the specter of a \u201c<a href=\"https:\/\/www.wsj.com\/articles\/the-silent-price-youll-pay-for-our-mounting-national-debt-federal-reserve-powell-doom-loop-interest-healthcare-11664484369\" target=\"_blank\" rel=\"noreferrer noopener\">doom loop<\/a>.\u201d In this scenario, the country will create ever-greater amounts of debt just to pay off interest costs \u2014 the national equivalent of paying $20 on a $1,000 credit card bill every month, such that the interest accumulates faster than the interest gets paid down.<\/p>\n<p>If you\u2019re thinking that the debt limit agreement House Speaker Kevin McCarthy, R-Calif., cut with President Biden has substantively changed the equation, think again. CBO <a href=\"https:\/\/www.cbo.gov\/system\/files\/2023-06\/59235-Debt.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">concluded<\/a> that the law would reduce the amount of debt held by the federal government as of 2033 by a measly 3 percent. And that assumes Congress actually sticks to the agreement\u2019s spending caps, which it has rarely done in the past.<\/p>\n<p>Likewise, the recent Supreme Court decision striking down some (<a href=\"https:\/\/www.wsj.com\/articles\/student-loan-forgiveness-isnt-dead-debt-repayment-college-supreme-court-education-d98c65d1?mod=opinion_major_pos4\" target=\"_blank\" rel=\"noreferrer noopener\">but not all<\/a>) of President Biden\u2019s student \u201cloan\u201d giveaways will only make a partial dent in the mountain of debt the federal government faces.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Fiscal Cliffs Ahead<\/strong><\/h2>\n<p>While its release just prior to the Independence Day holiday might make the CBO report irrelevant to some, events will soon make its projects very relevant. Roughly 18 months from now, the next president will face a <a href=\"https:\/\/www.wsj.com\/articles\/cbo-sounds-a-warning-of-american-fiscal-ruin-tax-increases-gdp-federal-debt-saving-work-private-investments-11652635997?mod=opinion_lead_pos10\" target=\"_blank\" rel=\"noreferrer noopener\">series of events<\/a> that will place our nation\u2019s fiscal future front and center:<\/p>\n<div class=\"fdrlst__b89e9-87e0fdf3653d0454d745fb542ec54c05 fdrlst__b89e9-paragraph-10\" id=\"fdrlst__b89e9-87e0fdf3653d0454d745fb542ec54c05\"><\/div>\n<ul>\n<li>Most of the provisions of the tax relief package Republicans passed in 2017 will expire at the end of 2025, creating a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cbo-report-illustrates-the-cause-of-our-debt-problem-its-the-spending-stupid\/\" title=\"CBO Report: Spending is the Cause of Our Debt Problem!\">massive tax increase absent congressional action<\/a>.<\/li>\n<li>Medicare and Social Security face looming insolvency, such that the next president and Congress will likely need to take action on one or both.<\/li>\n<li>Some would argue that the military needs significant rebuilding to combat a newly aggressive China and other threats worldwide.<\/li>\n<li>The economy could be in, or just recovering from, a recession caused to break the back of inflation (inflation exacerbated by <a href=\"https:\/\/thefederalist.com\/2022\/09\/21\/budget-analysts-conclude-biden-policies-will-add-4-8-trillion-to-national-debt\/\" target=\"_blank\" rel=\"noreferrer noopener\">profligate Democrat spending<\/a> and the <a href=\"https:\/\/thefederalist.com\/2021\/11\/17\/how-the-federal-reserve-keeps-stoking-inflation\/\" target=\"_blank\" rel=\"noreferrer noopener\">Federal Reserve printing money<\/a> during the pandemic).<\/li>\n<\/ul>\n<p>Beltway pundits are <a href=\"https:\/\/www.politico.com\/news\/2023\/06\/19\/tax-code-2024-elections-00102209\" target=\"_blank\" rel=\"noreferrer noopener\">already looking to 2025<\/a> as a potentially revealing year in our nation\u2019s fiscal trajectory. Let\u2019s hope that between now and then, lawmakers read CBO\u2019s analysis and take it to heart, by abandoning the notion that the United States can tax and spend its way to solvency, let alone prosperity.<\/p>\n<div class=\"fdrlst__b89e9-63f55d7e9f3c28a734b112b0a9393d80 fdrlst__b89e9-after-post-content\" id=\"fdrlst__b89e9-63f55d7e9f3c28a734b112b0a9393d80\"><\/div>\n<hr class=\"wp-block-separator\">    \t\t\t\t\t   \t\t\t\t\t\t\t\t\t<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Congressional Budget Office (CBO) released a report highlighting the US&#8217;s fiscal challenges. The annual analysis projected the long-term budget outlook, exposing the flaws in Democrats&#8217; proposed solution of imposing substantial taxes. This report adds to the CBO&#8217;s history of addressing the nation&#8217;s impending financial issues.<\/p>\n","protected":false},"author":521,"featured_media":1964345,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[],"class_list":["post-1964344","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1964344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/521"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1964344"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1964344\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1964345"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1964344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1964344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1964344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}