Skip to main content

Interest costs on U.S. debt to exceed economic growth by 2045, increasing risk of fiscal crisis

 The U. S. is projected to face a critical financial milestone by 2045 where the average interest rate on national debt will surpass the economic growth rate. This situation could lead to a debt spiral, as warned by analysts from a budget watchdog group.

• Interest costs are estimated to reach a record 3. 2 percent of GDP this year, exceeding expenses for defense and Medicare. This is predicted to rise to 5. 4 percent by 2055.

• If the average interest rate becomes higher than the economic growth rate by 2045, this could initiate a debt spiral, creating severe economic issues.

• Rising debt and deficits may lead to several negative outcomes, including slowed income growth, increased interest rates for the national debt, greater geopolitical risks, and a heavier burden on future generations.

• There is a concerning rise in the national debt, which could grow from 100 percent of GDP in FY 2025 to 156 percent by 2055.

• Annual budget deficits are expected to increase from 6. 2 percent of GDP in 2025 to 7. 3 percent by 2055, marking the highest rates seen outside of major crises.

• The Social Security fund is at risk of insolvency, projected to run out of reserves by 2033, leading to significant cuts in benefits.

• Policymakers need to address the issues of debt and deficit urgently, with recommendations against extending the 2017 Tax Cuts and Jobs Act without securing adequate offsets.

• Future tax revenues are likely to fall short, which will not bridge the increasing deficit gap since spending is expected to outpace tax collection.

• The CBO forecasts slow economic growth over the next decade, highlighting the necessity for responsible tax-related policy decisions to stimulate growth without worsening national debt.

The CBO's recent report serves as a warning sign for U. S. leaders to control spending to prevent the federal debt from reaching unsustainable levels. Urgent action is required as the nation faces financial challenges that could have significant implications for its fiscal health and economic stability in the coming decades. 

https://justthenews.com/government/congress/us-debt-track-exceed-economic-growth-2045-cbo

Comments

Post a Comment

Popular posts from this blog

Fauci Files Reveal Pfizer Helped Biden Rig 2020 Election

 Pfizer secretly colluded with Joe Biden's team to help him rig the 2020 election against Trump, according to new Fauci documents. In his new book, "On Call," Fauci admits that Albert Bourla, the CEO of Pfizer, called him the night after Biden was declared the winner of the election, to inform him of Pfizer's "Game-changing results" from the rigged mRNA trial. "On November 7, after the absentee ballots were counted, Joe Biden was declared the winner of the presidential election. It was the very next night that Albert Bourla, Pfizer's CEO, called me away from my neighbors' fire pit to inform me about the game-changing results from the Pfizer mRNA vaccine trial. I finally thought we had truly turned a corner in defeating this terrible disease." Today reports: In another interesting tidbit, Fauci discusses Trump's FDA Commissioner Stephen Hahn declaring that he would not go along with the Trump Administration's plan to roll out the vac...
Post a Comment
Read more

Republicans Withdraw $1 Billion From BlackRock Due To Its ESG Policies

  Multiple U.S. states governed by Republicans are withdrawing state funds from BlackRock's management, as they disapprove of the ESG investment policies of the world's top asset manager, the Financial Times reports. In recent weeks, Louisiana, South Carolina, Utah, and Arkansas have announced they would divest funds from... For months now, Republican states have said they would not do business anymore with asset managers who have ESG-aligned investment policies, which, the states say, show that those financial firms are boycotting the oil and gas industry. Texas is leading the campaign against this movement The Lone Star State published a list of financial firms that could be banned from doing business with Texas, its state pension funds, and local governments. https://oilprice.com/Latest-Energy-News/World-News/Republicans-Withdraw-1-Billion-From-BlackRock-Due-To-Its-ESG-Policies.html
Post a Comment
Read more

The Biden-Harris White House Has An Iranian Spy Leaking U.S. Intelligence In It

 The question is, how did classified intelligence from the United States, showing Israeli military movements that suggest broader action against Iran, get to Tehran? The answer raises uncomfortable questions for the Biden-Harris White House, which has opposed Israel every step of the way in responding to Hamas, Hezbollah, and Iran. Defying Biden got Israel the entire leadership of Hezbollah and Hamas, with the ultimate threat still looming: Iran and its nuclear program. Operations against Iran are being assessed also because Iran has started firing ballistic missiles into Israel, targeting civilian centers across the country. If Israel is close to launching a broader offensive against Iran, leaking U.S. intelligence would be a way to both try and deter Israel and give more warning to Iran. In 2012, similar allegations were made against the Obama administration when U.S. intelligence leaks showed that Israel was working towards using "Azerbaijan as a base of operations in the event...
Post a Comment
Read more