CBO Projects National Debt Will Reach $28.2 Trillion Over 10 Years
ObamaCare and the tax code disincentivize work
When Obama took office, our national debt was $10.6 trillion; as of today, it stands at over $19 trillion. The Congressional Budget Office (CBO) has issued a report that states our national debt will reach $28.2 trillion over the next ten years.
The Washington Free Beacon reports:
Outstanding federal debt is projected to hit $28.2 trillion over the next decade, according to a report from the Congressional Budget Office.
At the end of this year, outstanding federal debt is expected to climb to $19.4 trillion and to rise by $8.8 trillion in the next ten years.
The federal government’s budget deficit, which is the difference between how much money the government spends and how much money it takes in through tax collection, will be $590 billion by the end of 2016, $152 billion more than the previous year.
Government spending is projected to increase by 5 percent, or $178 billion, while government revenue is projected to increase by less than 1 percent, or $26 billion.
The rise in government spending is attributed to a 6 percent increase in outlays for Social Security and Medicare, a 1 percent increase in discretionary spending, and an 11 percent increase in net interest.
Consequences of the rising debt are addressed in the report.
The Washington Free Beacon continues:
The budget office says that rising debt will have serious consequences such as a substantial increase in spending on interest payments, a decrease in the nation’s capital stock, and declining productivity and wages, all of which increase the likelihood of a fiscal crisis.
The report projects that economic growth will expand at an average rate of about 2 percent in the second half of the decade, a slowdown from the average growth rates recorded during the 1980s, 1990s, and early 2000s.
The budget office says that rising debt will have serious consequences such as a substantial increase in spending on interest payments, a decrease in the nation’s capital stock, and declining productivity and wages, all of which increase the likelihood of a fiscal crisis.
The report projects that economic growth will expand at an average rate of about 2 percent in the second half of the decade, a slowdown from the average growth rates recorded during the 1980s, 1990s, and early 2000s. The budget office attributes this slowdown in projected growth to the nation’s low labor participation rate, which measures the percentage of the population that either had a job or sought one in the past month.
In the second quarter of 2016, the labor force participation rate was 62.7 percent. According to the Bureau of Labor Statistics, this is the lowest rat“The rest of the projected decline in potential labor force participation stems from the Affordable Care Act and the structure of the tax code, both of which reduce workers’ incentive to supply labor,” the report states. “The Congressional Budget Office projects that employment as a percentage of the population will fall to 57 percent in 2026, reflecting that decline in the potential labor force participation rate.”e recorded since 1978.
The budget office attributes the decline in labor force participation to demographic trends such as the aging of the baby boomer generation. Lingering effects of the recession, a weak recovery, and federal policies such as Obamacare and the tax code have also depressed labor force participation.
The CBO notes that ObamaCare and the structure of the tax code disincentivize work.
The Washington Free Beacon explains:
“The rest of the projected decline in potential labor force participation stems from the Affordable Care Act and the structure of the tax code, both of which reduce workers’ incentive to supply labor,” the report states. “The Congressional Budget Office projects that employment as a percentage of the population will fall to 57 percent in 2026, reflecting that decline in the potential labor force participation rate.”
It is worth noting that the CBO predicted in 2009 that our national debt would be $14.9 trillion by 2019. We exceeded that in 2011.
DONATE
Donations tax deductible
to the full extent allowed by law.
Comments
I said it years ago, and it’s time to dust it off.
Barracula has perfected Cloward-Piven, which was evil enough in its design, but really quite limited in its scope.
The Cloward-Piven approach to destroying the America known to that point was to encourage the explosion of welfare all over the nation to the point that the economy could no longer sustain it.
In other words, it was an attack on the demand side of the American economy.
But Barracula combined that with an attack on the supply side of the American economy…the productive side of the equation.
What we’ve had is a ballooning demand for “entitlements” all across our population, coupled with a fizzling private economy needed to feed the demand.
This cannot go on much longer. “That which cannot last, won’t”.
But all we’ve seen is two Collectivist candidates for POTUS who absolutely refuse to deal with reality.
Absolutely. Refuse.
Trump runs successful businesses that generate wealth, produce value for shareholders, write thousands of paychecks each week, pay taxes and contribute millions to GDP.
Clinton runs a protection racket and influence peddling scheme that produces no wealth, destroys legitimate businesses, undermines the institutions of legitimate government, and increases dependency.
Absolutely. No. Difference. /sarc
Vote for the one who supports…and has LIVED…market economics and individual liberty, including how one chooses to use property, trade, and with whom and how.
Vote for the one who has NOT proposed increasing the national debt for “stimulus”.
Vote for the one who has had the courage to face the fact that entitlement spending cannot continue as is.
Vote for the one who does not advocate a command economy.
Gotcha.
And if I was stupid enough to follow your advice, what’s your plan to deal with the Hillary victory that follows?
I am not making up my mind until I see which way Rags is leaning in this election. It would be nice if he would drop a few hints one way or the other. The man sure does like to keep those cards close to his vest just like a lawyer.
Well with Hillary in office, you can expect that in less than 4 years.
Obamacare, Iran, BLM, etc may all be a mess but in the long run none of it really compares to adding almost $10T to the deficit in eight years with absolutely nothing to show for it. But democrats know that most of their voters don’t understand this stuff so they keep running it up. Many Republicans too. The Fed is already buying debt to keep interest rates down. At some point it all just becomes funny money and the price of a gallon of milk doubles three times in five years and the party’s over.
We can only kick the can down the road so long. Then, either we run out of road, or the can is destroyed, or it’s too painful to kick it anymore. If things reach one of these points, it means there’s hell to pay.
And some guy at a store will not accept my check and wants me to pay in cash. So, I say, do you really want a piece of green paper from some outfit that is 28 trillion dollars in debt?
Actually makes me feel pretty good knowing that I am now making more money than the whole United States government. I am rich!
Ya know, that’s why Hilliary & Bill won’t be gathering money for the Clinton Crime Family fund after she’s elected. Instead, they’ll put their considerable money gathering skills to work to pay off the national debt before her first term is over. A speech here, a speech there, a lot of pay-to-play and voilà…the debt is gone. 🙂