CBO Predicts Fiscal Armageddon Under Current Policies

Fiscal Armageddon?

The CBO has come out with two fiscal scenarios depicted in the chart above, the positive outlook on the left relies on current laws and the second bleak outlook on the right relies on current policies.

The dismal alternative is armageddon for the United States.

The CBO projected that the federal debt will reach roughly 70 percent of gross domestic product (GDP), the highest percentage since shortly after World War II.

The budget outlook is much bleaker under the extended alternative fiscal scenario, which maintains what some analysts might consider “current policies,” as opposed to current laws. Federal debt would grow rapidly from its already high level, exceeding 90 percent of GDP in 2022. After that, the growing imbalance between revenues and spending, combined with spiraling interest payments, would swiftly push debt to higher and higher levels. Debt as a share of GDP would exceed its historical peak of 109 percent by 2026, and it would approach 200 percent in 2037.

Read more at CBO Projections

Rep. Paul Ryan has said that if Obamacare is allowed to stand, by 2030 it will be 100% of the budget. Let’s hope that thing gets voted down.