June 25, 2019
Highlights from CBO’s Long-Term Budget Outlook 2019
The Congressional Budget Office released its updated Long-Term Budget Outlook — largely similar to last year’s — and projected that the U.S. debt will nearly double as a share of the economy by 2049. AAF’s Director of Fiscal Policy Gordon Gray notes that the basic problem remains: federal commitments to health and retirement programs and the interest owed on a growing portfolio of debt outstrip current and historical levels of taxation.
The current federal budget trajectory promises higher debt and, consequently, reduced public and private investment. This spending growth reflects growing federal transfer programs and borrowing needs financed by a lower standard of living for future generations. Absent reform, these trends are becoming increasingly intractable and will require more significant fiscal consolidations to address.