“…The budget outlook in the United States is “daunting” and the federal debt will reach about 70 percent of gross domestic product (GDP), the highest level since World War II, according to a report released by the U.S. Congressional Budget Office (CBO) Wednesday.
“Recently, the federal government has been recording budget deficits that are the largest as a share of the economy since 1945,” the CBO’s 2011 Long-Term Budget Outlook report said. “Consequently, the amount of federal debt held by the public has surged.”
The CBO said, at the end of 2008, that debt equaled 40 percent of the nation’s annual economic output. Since then, the figure had shot upward…” Read here: 70% of U.S. economy
And then we have this: – “WASHINGTON, June 22 (Reuters) – The United States will find little relief from its bleak long-term fiscal outlook so long as growing federal healthcare and retirement programs gobble up more and more of the country’s resources, said a new economic report issued on Wednesday.
The findings by the non-partisan Congressional Budget Office came as the Obama administration and Congress were struggling to find ways to make ends meet amid $1.5 trillion annual budget deficits and a national debt that, at $14.3 trillion, is seen as posing a danger to the nation.
“The aging of the population and the rising cost of health care would cause spending on the major mandatory healthcare programs and Social Security to grow from roughly 10 percent of GDP today to about 15 percent of GDP 25 years from now,” CBO said in an annual report.
By comparison, CBO noted, total federal spending, excluding interest payments on the debt, has averaged about 18.5 percent of GDP over the past 40 years.
“CBO’s new long-term budget outlook again highlights the urgency of reaching agreement on a bipartisan and comprehensive long-term deficit and debt reduction plan,” Senate Budget Committee Chairman Kent Conrad said. He has been calling for about $4 trillion in long-term savings through a mix of spending cuts and tax increases..” Read here: We can\’t afford retirements and healthcare benefits