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March 10, 2015

Federal Deficits Set to Rise, CBO Predicts

While the Obama administration touts that it flat-lined the growth of the deficit, such economic advancement (which came at the hands of congressional Republicans, by the way) will only last until Obama leaves office. The Congressional Budget Office predicts time and time again that the federal budget – and then by extension the rest of the economy – will head to dire waters in a few years. “And the long-term picture is even worse,” writes Romina Boccia and Michael Sargent of the Heritage Foundation. “The report shows that spending is on the rise, propelling deficits to return to the trillion-dollar mark by the end of the decade in 2025. Spending meanwhile will nominally grow from $3.5 trillion last year to exceed $6 trillion by 2025. In terms of a percentage of the economy, spending will rise to 22.1 percent of GDP from its 2014 level of 20.3 percent of GDP.” The problem mostly boils down to the double dose of government waste and an increased demand in entitlement spending through programs like Medicare, ObamaCare and Social Security. The problem fiscal conservatives have been talking about for years will become too acute for short-sighted politicians to ignore. More…

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